Buyer's Guide

Real Estate Transactions

Real estate commissions standardized by the Bahamas Real Estate Association are at 6% for developed properties and 10% for vacant land property in New Providence (Nassau). For out island property the real estate commission is 10% for all property. There are sometimes variations to the rule, but this is a general guideline.

Stamp Duty

The Government charges a stamp duty on all real estate transactions at closing. Rates are calculated based on the property sales price as follows:

Up to & including Stamp duty
$0-$20,000 2%
$20,000.01-$50,000 4%
$50,000.01-$100,000 6%
$100,000.01-$250,000 8%
Over $250,000 10%

In property sales the standard procedure is for the buyer and seller to split the stamp duty 50/50.

A lawyer is typically used for handling real estate sale transactions and this is advisable. The normal legal charge is 2.5% of the sales price.

Stamp duty on mortgages is payable at a rate of 1% on the amount borrowed.

International Persons Landholding Act, 1993

The International Persons Landholding Act made it easier for non-Bahamians and companies under their control to own property.

All applications for permits, along with fees made payable to the Public Treasury, should be submitted to the Bahamas Investment Authority for consideration by the Investments Board.

Fee Schedule

The schedule of fees for a certificate of registration and permit are:

Application for certificate of registration...............................$25
Application for permit....................................................$25

Upon issue of certificate of registration or issue of permit where:

The property value* is $50,000 and under.....................................$50
The property value is more than $50,000 but less than $101,000...............$75
The property value is $101,000 and over......................................$100
Annual homeowner's residence card............................................$500

*Value in relation to a lease is the annual rent reserved times the number of years.

Property Tax

Bahamians and non-Bahamians owning real property in The Bahamas must pay property tax. Returns are due on or before December 31 each year, and are filed with the Chief Valuation Officer. Taxes are paid to the Public Treasury and are as follows:

Rates of Taxes

Owner-occupied property (residential):
  1. The first $250,000 of market value*.........................exempt
  2. More than $250,000
    and not exceeding $500,000 of market value..................3/4%
  3. More than $500,000 of market value..........................1%
Vacant land owned by non-Bahamians:
  1. First $3,000 of market value................................$30
  2. More than $3,000
    and not exceeding $100,000 of market value..................1%
  3. More than $100,000 of market value..........................1.5%
All other properties/commercial:
  1. First $500,000 of market value..............................1%
  2. More than $500,000 of market value..........................2%

Residency

Permanent Residence Permit

In addition to being at least 18 years of age and of good character, in the application of the applicant for permanent residency, the applicant must state that he or she intends to reside permanently in The Bahamas. Permanent Residence has become very popular and accelerated consideration of application is given to major international investors and owners of residences valued at one million, five hundred thousand Bahamian dollars (B$1.5 million) or more. The government fee for this is a one-time fee of ten thousand Bahamian dollars(B$10,000) and one hundred Bahamian dollars (B$100) for an applicant’s spouse and dependent minors. Fees for the initial application for the primary applicant is three thousand Bahamian dollars (B$3,000) (minimum) subject to increase in complex and lengthy cases and payment on account of one thousand five hundred Bahamian dollars (B$1,500) should be made upon our being instructed. Although our experience has been positive, as mentioned above, the grant of permanent residency is in the absolute discretion of the Board. The following documents are required:

A person holding a certificate of permanent residence who wishes to include his wife, or dependent child under the age of eighteen (18) and ordinarily resident in his household, may have them endorsed on the certificate at the time of his original application or at a subsequent date, subject to such conditions as might be laid down by the Board.

All international persons owning residences in The Bahamas are eligible to receive, upon application to the Director of Immigration, an annual “Home Owners Card”. This card facilitates entry into The Bahamas and entitles the owner, his/her spouse and minor children to multiple entries to The Bahamas and the ability to remain in The Bahamas for the duration of the validity of the card.

Homeowner’s Card

Non-Bahamians who own homes in The Bahamas may apply to the Director of Immigration for an annual home owner’s resident card (the “Home Owner’s Card”) that bears the holder’s picture. This card entitles the owner, spouse and any minor endorsed on the owner’s card, to enter The Bahamas and reside here for as long as the validity of the card. The government fee for this is five hundred Bahamian dollars (B$500) per annum and is obtained within a few days of purchasing. Fees for the initial application is one thousand Bahamian dollars (B$1,000) minimum subject to increase in complex or lengthy cases and payment on account of five hundred Bahamian dollars (B$500) should be made upon our being instructed. The intended purpose is to facilitate entry into The Bahamas with minimal formalities. There is no need for a return ticket and the Home Owner’s Card entitles the holder to stay up to one year. The following documents are required:

Although the form does not have to be completed and submitted until after the applicant’s arrival, please note that there are documents to be submitted with the application which would be appropriate to obtain or request prior to the applicant’s departure for The Bahamas.