Bahamas Real Estate Investment Guide

Why should I invest in the Bahamas?

  • A politically stable environment conducive to private investment
  • An atmosphere where investments are safe and the expropriation of investments capital is not a considered option;
  • A legal environment based on a long tradition of Parliamentary Democracy, the rule of constitutional and statue laws and where security of life and personal property is guaranteed;
  • A stable macroeconomic environment bolstered by a prudent fiscal policy, a stable exchange rate, flexible exchange control rules and free trade;
  • An environment in which freedom from Capital Gains, Inheritance, Withholding, Profit Remittance, Corporate, Royalties, Sales,l Personal Income, Dividends, Payroll and Interest Taxes are ensured;
  • Essential public service, an adequately equipped police constabulary, modern health and education facilities and other social services;
  • Dependable Public Utilities; and
  • Essential Public Infrastructure such as roads, ports and airports.

There are incentives to persons for choosing The Bahamas for this purpose as well. Overseas investors may acquire residential properties in The Bahamas of up to two acres without prior government approval. Additionally, persons who purchase a home in The Bahamas valued at $1.5 million or more may receive accelerated consideration of their application for Permanent Residency in The Bahamas. These are processed within a period of 21 days.

Government Stamp Duty (Paid At Closing, Generally split 50/50 between buyer and seller)

Value of Consideration Stamp Duty
$0 - $20,000 4%
$50,000-$100,000 8%
Greater than $100,000 10%

Subsequent to the implementation of VAT, the Stamp Duty rate changed to a flat 2.5% with a 12% VAT being charged in lieu of the former Stamp Duty rate on transactions above $100,000.

Property Tax - In respect of owner-occupied property:

  • The first $250,000 of market value is tax exempt
  • More than $250,000 and not exceeding $500,000 of market value is ¾%
  • More than $500,000 and not exceeding $5,000,000 of market value is 1%
  • More than $5,000,000 of market value is .25%

In respect of unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act:

  • First $7,000 of market value is $100
  • More than $7,000 of market value is 1.5%.

In respect of any other property:

  • First $500,000 of market value is 1%
  • More than $500,000 of market value is 2%