GOVERNMENT TAXES ON PROPERTY CONVEYANCES

• 2.5% Value Added Tax (VAT) applicable on all property transactions valued at $100,000 or less.
• 4% Value Added Tax (VAT) applicable on all property transactions valued at more than $100,000 but less than $300,000.
• 6% Value Added Tax (VAT) applicable on all property transactions valued at more than $300,000 but less than $500,000.
• 8% Value Added Tax (VAT) applicable on all property transactions valued at more than $500,000 but less than $700,000.
• 9% Value Added Tax (VAT) applicable on all property transactions valued at more than $700,000 but less than $1,000,000.
• 10% Value Added Tax (VAT) applicable on all property transactions valued at more than $1,000,000.
  
  First-time home buyers who are Bahamian citizens:
• 4% Value Added Tax (VAT) applicable on all property transactions valued more than $300,000 but less than $500,000.
  
  Every long-term lease or transfer of an interest in a long-term lease:

• 2.5% Value Added Tax (VAT) applicable on all property transactions valued less than $100,000.
• 10% Value Added Tax (VAT) applicable on all property transactions where the value exceeds $100,000.
• 10% Value Added Tax (VAT) applicable on a property transaction that:
  
  • Has the effect of transferring any interest in a real property holding entity and which would have a similar effect on the legal or beneficial interest in any real property in The Bahamas that is legally or beneficially owned by the entity had the legal or beneficial ownership of such entity represented the proportionate parts into which that legal or beneficial interest in that real property were divided; or
  • forms part of a series of transactions, and has the cumulative effect on real property as referred to in paragraph (a) above, unless the Comptroller is satisfied that the transaction is not of a series.

The usual practice in the Bahamas is for the tax to be shared equally between buyer and seller unless otherwise agreed upon.

A 10% Value Added Tax (VAT) is charged on real estate services, including appraisals, legal work, commissions, and insurance.

Laws and policies are subject to change.

LEGAL FEES *

Both buyer and seller need legal representation by a Bahamian attorney.

BAHAMAS REAL ESTATE COMMISSIONS *

• Developed property: 6%
• Undeveloped property (vacant land): 10%

ANNUAL REAL PROPERTY TAX RATES

The rates of tax on real property are as follows:

In respect of owner-occupied property:

• The first $250,000 of market value is tax-exempt
• More than $250,000 and not exceeding $500,000 of market value is 0.625%
• More than $500,000 and not exceeding $5,000,000 of market value is 1%
• More than $5,000,000 of market value is ½% (capped at $50,000 annually)

In respect of unimproved property: (other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act)

• First $7,000 of market value is $100
• More than $7,000 of market value 2%

In respect of any other property:

• First $500,000 of market value is 1%
• More than $500,000 of market value is 2%

Exemptions

Property owned by Bahamians and situated in the Family Islands is exempt from property tax. Property approved as commercial farm land (by the Minister of Agriculture and Marine Resources, and the Minister of Finance) may be eligible for property tax exemptions.

Unimproved property owned by Bahamians, meaning property without physical additions or alterations, or any works benefitting the land which has not increased the market value thereof by $5,000 or more;

Places of religious worship; school buildings and their gardens and playing areas;

Property owned by foreign governments;

Property owned by foreign nations used for consular offices or residences of consular officials and employees;

Property used exclusively for charitable or public service from which no profit is derived.

ANNUAL HOMEOWNERS RESIDENCE CARD

Available to any homeowner in The Bahamas. Obtained from the Director of Immigration, it allows the permit holder, and family, to enter and remain in The Bahamas for the period of the permit.

SHIPPING FURNITURE AND HOUSEHOLD ITEMS

Easily handled by a shipping or airfreight company which makes moving and decoration quite easy. A detailed inventory of items with approximate value is needed and we suggest using local customs prior to clearing your items.

FINANCING

Local banks offer BSD$ and US$ mortgages to finance the purchase of a home or property in The Bahamas.

* BAHAMAS GOVERNMENT VALUE ADDED TAX (VAT)

As of January 1, 2022 the Bahamas Government Value Added Tax (VAT), is 10% on all products and services in The Bahamas.