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Buyer's Guide

Fees & Regulations

Graham Real Estate will educate you on the step by step process that is involved with purchasing a property in The Bahamas. Below is an outline of fees you can expect to come across as well as regulations when it comes to immigrating to the country.

During the transaction there are the following:

  1. Stamp Tax (typically split by the buyer and seller)
  2. Legal Fees
  3. Real Estate Commission (typically paid by the seller)

Once you purchase the property there are the following:

  1. Registration fees
  2. Annual Property Taxes

Stamp Tax

This is payable on all sales or transfers of property and is generally split equally between the buyer and the seller. The rates are as follows:

Market Value Tax Rate
$0 - $20,000 4%
More than $20,000 and up to $50,000 6%
More than $50,000 and up to $100,000 8%
More than $100,000 10%

Legal Fees

Every property transaction requires the services of a Bahamian attorney. These are established by the Bahamas Bar Association, and normally amount to 2% of the gross sale price of the property for each side (buyer & seller). Graham Real Estate has established relationships with reputable attorney’s and can make recommendations.

Real Estate Commission

The commission rates on the sale of properties are set by the Bahamas Real Estate Association and are usually paid by the seller. The rates are based on the gross sales price of the property and are as follows:

New Providence & Family Islands
Undeveloped or Vacant property 10%
Developed property (residential or commercial) 6%

Registration of Property and Permits

All non-Bahamians must register their purchase of any type of property with the Secretary to the Foreign Investments Board. This takes place after the property has been conveyed. The fee to apply for the certificate of registration is a one-time fee of $250.

Under the International Persons Landholding Act, permits are required for land purchases made by non-Bahamians only if the property being bought is larger than five contiguous acres, or the buyer intends to rent out all or a part of the real estate or develop it for commercial purposes. In this case the permit is applied for prior to conveying the property. The current cost of the permit is $500.

Property Tax

All real estate owners must pay property tax, which is due on or before December 31 of each year. The rates are:

Residential Properties

Market Value Tax Rate
First $250,000 Exempt
On the portion worth more than $250,000 and under $500,000 .75%
On the portion worth more than $500,000 1%
By law, the maximum annual tax may not exceed $35,000.

Vacant Land Owned by Non-Bahamians

Market ValueTax Rate
First $3,000 $30
On the portion worth more than $3,000 and under $100,000 1%
On the portion worth more than $100,000 1.5%

All Other Properties / Commercial

Market ValueTax Rate
First $500,000 1%
On the portion worth more than $500,000 1.5%
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