The Bahamas is known as a country that has pristine beaches, crystal-clear waters, and warm tropical climate. It is one of the things that make travelers and investors love this country. As it is such a gorgeous and interesting country, many people, including foreigners, are wondering about the regulations and opportunities for purchasing real estate in the Bahamas.
If you are one of the foreigners who also want to know the regulations and opportunities for purchasing real estate in the Bahamas, you will be able to find the guidelines and procedures for foreigners who are looking to buy property in the Bahamas here.
Are Foreigners Allowed to Buy Property in the Bahamas?
The short answer to the question is yes. Foreigners are allowed to buy property in the Bahamas because the Government of the Bahamas welcomes investment from buyers who are from outside the Bahamas. According to Knight Frank, there are no restrictions on foreigners buying properties in the Bahamas. When it comes to buying property in the Bahamas, foreigners have the same right as the Bahamian citizens, including the right to purchase beachfront land. Once again, foreigners are allowed to buy property in the Bahamas as long as they are eligible for an annual Home Owners Resident Card. It is stated that those who are buying a property valued at $500,000 and above have a privilege in permanent residence applications.
Purchasing property in the Bahamas is easier for the foreigners compared to other destinations in the Caribbean because a license or permit is not required. However, there is an exception, which is when buyers purchase more than 2 acres, have an intention to rent out the property or for commercial development.
Buying Process
It is really easy to buy property in the Bahamas. Those who are planning to buy property in the Bahamas can follow the following steps:
- First of all, you should start your property search.
- Once you have found your dream property, it is time for you to make an offer.
- If your offer is accepted, seek advice from a local lawyer to ensure that all documents are in order.
- Then, a sales contract will be made. Once you and the other party agreed and signed, you will have to pay a total of 10% deposit.
- As a buyer, you will also need to transfer the balance of the purchase price and pay all the required taxes.
- As you are a foreigner, another thing that you should do is to register your investment with the Exchange Control at the Central Bank of The Bahamas. It is important to ensure that on resale you will be able to remit the net proceeds of the sale outside the Bahamas in the currency of the original investment.
Fees and Taxes
The buyers and the sellers of the property in the Bahamas have to spend on the Stamp Duty. Talking about the Stamp Duty, it varies according to the value of the property. The options are as follows:
- Property that is $100,000 or below: 2.5%
- Property that is more than $100,000: 10%
It should be noted that 12% Value Added Tax or VAT is applied to real estate services, including appraisals, legal services, commissions, and insurance.
Every year, those who have properties in the Bahamas have to pay an Annual Real Property Tax. Just like the Stamp Duty, it is also paid according to the value of the property. Check out the calculations table below:
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Taxes |
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Owner-occupied property |
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Unimproved property |
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Any other property |
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It is worth noting that there are certain types of property that are free from Real Property Tax. The list includes properties that are owned by Bahamians in the Family Islands and those who are owned by the foreign governments.
Bottom Line
Owning a property in the Bahamas is a dream of many. If you are a foreign, you have a chance to buy a property in the Bahamas because the government of the Bahamas allows everyone to buy property in their country, including foreigners. What makes it better is that there are no restrictions for foreigners. However, there are some necessary regulations that have to be followed.
