My Bahamas
The Bahamas: A Country of Islands and Wonders
The Bahamas is a country of over 700 islands, cays, and islets in the Atlantic Ocean, with a rich history and culture influenced by Lucayan, African, European, and American settlers. The islands are known for their stunning beaches, turquoise waters, coral reefs, and diverse wildlife, attracting millions of visitors every year for sailing, fishing, snorkeling, diving, and relaxing.
The Bahamas became an independent nation in 1973, after centuries of colonial rule by Spain, Britain, and the United States. It is a member of the Commonwealth of Nations and has a parliamentary democracy.
With 32 national parks protecting its natural and cultural heritage, The Bahamas is home to the world’s largest colony of flamingos, the endangered Bahama parrot, the rare Bahamian rock iguana, and the historic Lucayan National Park.
The Bahamas is a destination with 16 islands, each offering different attractions like Nassau, Paradise Island, and the Abacos. It is a place of adventure, romance, beauty, and fun, where visitors can experience the friendly hospitality, vibrant music, delicious cuisine, and colorful festivals of the Bahamian people.
What you need to know about buying property in the Bahamas
Registration
The Intamational Persone Landholding Act 1003 encourages foreigners or companies owned by them to purchase a second home in The Bahamas as this area was thought to have the most significant potential if a foreigner acquires a single family dwelling or vacant land to be used in the construction of such a dwelling then he no longer need obtain a permit from the Government (specifically the Investments Board) prior to the purchase. He need only register the acquisition subsequently with the Investments Board.
Permanent residents of The Bahamas and foreigners who inherit property in the Bahamas are now treated more kindly, in neither case are they to obtain a permit before acquiring land but must merely register subsequently,
Permit
A Permit to Acquire Property is required by all non-Bahamians acquiring an interest in land if the property is undeveloped land with two or more adjoining acres. A Permit is also requited if the intended use is not as an owner-occupied property.
International Persons Landholding Act
This law requires all foreigners who plan to lease out their properties to register with the Bahamas Investment Authority. The fees are as follows:
- Application for registration: $25.00
- Application for permit: $25.00
- Permit: $500
- Certificate of Registration
- $50K or less: $50.00
- Between $50K & $101K: $75.00
- Mone than $101K: $100.00
Annual resident permits are available and varying costs depending on the category of permit.
The card allows the holder to remain in the Bahamas for the duration of the permit.
Foreign Owned Rental Properties
Foreign Owned rentall homes need to apply for an additional license to operate as a rental property, The annual taxes to run a property in this fashion are as follows:
- A property with a market value less than $250K: Exempt
- Between $250K and $500K: 0,75/%
- Over $500K: 1%
Additionally, a 10% hotel guest tax will need to collected from tenants for each room availlatie for rent.
Taxes Involved in the Purchase of a Home
When any property is bought or sold Value Added Tax must be paid. This tax is split between the buyer and seller.
The required tax range are as follows
- 10% VAT is charged on all services such as appraisals, commissions and legal fees.
Annual Real Property Tax
In respect of owner occupied property Real Property Tax is charged as follows
- The first $250,000 of market value is exempt
- Over $250,000 and less than $500.000 is 3/4%
- Over $500,000 and less than $5,000,000 is 1%
- More than $5,000,000 1/2%
In respect of unimproved property the rates are:
- First 57,000 of market value is $100
- More than $7,000 of market value is 1 and 1/25%
In respect of any other property
- First $500,000 of market value is 15%
- More than $500,000 of market value is 2%
Other Charges
The vendor is responsible for real estate commission at a rate of 6% for improved property, 10% for vacant land.
Legal fees at a rate of 2.5% or otherwise negotiated are payable by both the vendor and the purchaser.
Is it possible as a non-Bahamian to live in The Bahamas?
Yes. As an owner of a property valued at a minimum of $250,000 you can apply for annual residency. An owner of a property valued at $750,000 or greater qualifies you to apply for Economic Permanent Residency. Accelerated consideration is given to applicants whereby the investment exceeds $1.5 million.
Benefits of buying property in The Bahamas?
There is no income tax, capital gains taxes or inheritance taxes. There is no sales tax with the exception of VAT (value added tax) @ 10%.
The Bahamas Government’s main source of revenue is from customs duties on all goods imported into The Bahamas. This tax may be as low as 0% as in the case of computers and computer software, and as high as 65% in the case of all non-hybrid cars, and 220% on cigars. The typical rate of duty is around 35%. The 10% VAT is applied on top of duty in most instances.