A Snap Shot for Investors & Home Buyers
Island Treasures, while giving you the information you’d need, is dedicated to facilitating all the procedures involved in purchasing real estate in The Bahamas. Our brokers and agents are ready and willing to assist you every step of the way.
Currency
The Bahamas uses the Bahamian dollar (B$) which is on par with the US$ and used interchangeably throughout the Bahamas Islands.
Real estate transactions usually begin with all parties concerned: the purchaser, the vendor, their respective attorneys, and the realtor. The transaction includes an accepted purchase offer, with a subsequent deposit placed with the real estate professional as stakeholder. He/She will then provide an approved sales agreement, if not the vendor’s attorney will provide a draft, depending on the arrangement. Once the purchaser’s attorney has given approval, the contract will be executed first by the purchase then by the vendor. The vendor’s attorney will then issue a copy of the conveyance, which is held in escrow pending the completion of the sale. Upon approval of the conveyance, the sale wraps up with the conveyance executed and the balance of the agreed purchase amount paid to the vendor. The purchaser will receive the conveyance which is sent to the government registry to be recorded.
Purchase Permit
As a foreigner you will require a permit:
- If the property is undeveloped land and of five acres in size or larger.
- If the property is not a private residence, or not intended for development as such.
- You would need a registration certificate or permit along with title documents to be recorded in the Registrar General’s office.
- Application for registration – $25.00
- Application for permit – $25.00
Certificate of registration
For property valued:
- $50,000 or less – $50.00
- $50,000 but under $101,000 – $75.00
- $101,000 and over – $100.00
- For Home Owner resident card – $500.00
Stamp Duty
The government charges stamp duty on property tranfers/conveyances as indicated in the following:
$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%
The vendor and purchaser shares the stamp duty 50-50 unless otherwise agreed. The attorney typically charges 2.5% of the sale price.
The first reason is the most obvious. Real estate in The Bahamas is enhanced by agreeable climate, and tropical beauty. 700 islands to choose from, prime properties in numerous locations, scattered throughout our archipelago, provide an added bonus. Yet, there are a few not so obvious reasons.
* Freedom from taxes
The Bahamas is an investment-friendly environment. This means The Bahamas Government actually encourages foreign investors to their shores. In fact, in 1994, The Bahamas introduced a National Investment Policy to give support to private investors and to provide a legal environment where you’d secure freedom from capital gains, inheritance, profit remittance, corporate, royalty, personal income, dividends, payroll and interest taxes.
* Investment Incentives
The Bahamas encourages investors by allowing exemption form the payment of custom duties on certain construction materials, equipment and approved raw materials. Additionally, there is a waiver of real property taxes on certain investments for periods up to 20 years.
The Bahamas Government also gives accelerated consideration to applications for annual or permanent residency by major international investors and owners of residences valued in excess of $500,000.
* Stable government and economy
The Bahamas ha been a stable and peaceful democracy since 1729. Now an independent nation since 1973, our financial and touristic sector have experienced growth and continue to be viable industries.