Fees & Regulations
Registration of Property and Permits
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.
Non-Bahamians must register their purchase of any type of property, however, with the Secretary to the Foreign Investments Board. The fee to apply to register a property, or to apply for a permit, is $25. Once the certificate of registration or permit is issued, the additional fees due depend on the value of the property:
| Market Value | Fee |
|---|---|
| $50,000 or less | $50 |
| More than $50,000 and under $101,000 | $75 |
| More than $101,000 | $100 |
| The market value is defined as the last sale price of the property. | |
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 | 2% |
| More than $20,000 and up to $50,000 | 4% |
| More than $50,000 and up to $100,000 | 6% |
| More than $100,000 and up to $250,000 | 8% |
| More than $250,000 | 10% |
Legal Fees
These are established by the Bahamas Bar Association, and typically amount to 2-1/2% of the gross sale price of the property. Legal fees are normally shared equally between the seller and the buyer.
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 Value | Tax 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 Value | Tax Rate |
|---|---|
| First $500,000 | 1% |
| On the portion worth more than $500,000 | 1.5% |
The real estate agency commission (if any) is usually paid by the seller.
For more information about investing in The Bahamas, and local real estate transactions, please visit the following useful web sites: