For most people, buying real estate is usually the single-largest investment they will ever make

The Bahamas Government has an investor-friendly outlook to encourage international investors to buy property in The Bahamas. International ownership of homes and properties under five acres in size is straightforward. A Certificate of Registration issued by the Bahamas Investment Board and The Central Bank of The Bahamas completes the purchase.

Yes, the Government has also adopted an accommodating position on granting residency permits to international investors and homeowners. International buyers can apply for Annual Residency upon purchasing a property valued at more than $250,000. International buyers purchasing a property valued at $750,000 or more may apply for Permanent Residency. International buyers purchasing a property valued at more than $1.5 million will receive expedited consideration for Permanent Residency. An annual Home Owners Residence Card is available to all international homeowners and immediate family members to enter and remain in The Bahamas for the duration of the card's validity.

Yes, once you have obtained a Certificate of Registration for your investment at the time you purchased it, you will be able to repatriate the entire proceeds of sale (including profit) after the completion of the sale of your property.

Yes, we strongly recommend hiring a local attorney to represent your best interest in purchasing a property. The attorney will undertake a title search of the property, provide you with an opinion on the title, and rectify any outstanding title and lien issues. The attorney's opinion on the title is similar to obtaining title insurance in that the attorney is liable for any defects subsequently found. The law firm's indemnity insurance covers the attorney's opinion of title. Once your attorney proves the title to be good and marketable, your attorney will review and perfect the conveyance to ensure the proper title is passed onto you to complete the sale.

Yes, some insurance companies in The Bahamas offer title insurance.

Transfer Tax (VAT) – Determined as a percentage of the purchase price. Where the buyer is purchasing in the capacity of:-

• A first-time homebuyer where the individual is a citizen of The Bahamas:- 4% where the value exceeds $300,000 but does not exceed $500,000.
• An individual who is a citizen of The Bahamas or is a permanent resident with the right to work in The Bahamas:- 2.5% where the value is less than $100,000; 4% where the value exceeds $100,000 but less than $300,000; 6% where the value exceeds $300,000 but less than $500,000; 8% where the value exceeds $500,000 but less than $700,000; 9% where the value exceeds $700,000 but less than $1,000,000; and 10% where the value exceeds $1,000,000.
• An individual who is otherwise a foreign person, 10%.
• A Bahamian company in which all shares are legally and beneficially owned by citizens of The Bahamas or permanent residents with the right to work in The Bahamas, and that is used solely by the owner for holding real estate property and does not otherwise conduct business:- 2.5% where the value is less than $100,000; 4% where the value exceeds $100,000 but less than $300,000; 6% where the value exceeds $300,000 but less than $500,000; 8% where the value exceeds $500,000 but less than $700,000; 9% where the value exceeds $700,000 but less than $1,000,000; and 10% where the value exceeds $1,000,000.

• Any other Bahamian company or other Bahamian entity:- 2.5% where the value is less than $100,000; and 10% where the value exceeds $100,000.

Typically, the Transfer Tax is shared equally between the buyer and the seller unless otherwise agreed upon between the seller and buyer.

Legal Fees - Each party pays its respective legal fee and 10% VAT thereon. Typically, the legal fee for a party will not exceed 2.5% of the purchase price.

Real Estate Commission – Brokerages charge 6% of the purchase price for developed land and 10% for undeveloped land. Typically, the seller pays the real estate commission unless otherwise agreed between the buyer and seller.

The Government assesses and charges annual Property Tax (aka Real Property Tax) based on the following:

• For owner-occupied residences on the part of the value that does not exceed $300,000 – exempt
• On the part of the value that exceeds $300,000 and does not exceed $500,000 – 0.625%
• On the part of the value that exceeds $500,000 - 1% ($120,000 annually cap)



For Undeveloped Land:

• The first $7,000 of value - $100
• On the part of the value that exceeds $7,000 and does not exceed $75,000 - 1.5%
• On the part of the value that exceeds $75,000 and does not exceed $500,000 - 0.75%
• On the part of the value that exceeds $500,000 - 2%



In respect of any other property (i.e. commercial, multi-family investment, etc.):

• On the part of the value that does not exceed $500,000 – 0.75%.
• On the part of the value that exceeds $500,000 and does not exceed $2 million - 1%.
• On the part of the value that exceeds $2 million – 1.5%.



Exemptions on specific properties exist, so any owner seeking clarification should contact the Department of Inland Revenue.

Citizens of The Bahamas are exempt from property tax on undeveloped land throughout The Bahamas and properties owned on the Family Island.

Under the Real (Brokers & Salesmen) Act, 1995, the Bahamas Real Estate Association (BREA) licenses all Brokers and Salesmen in The Bahamas. Any person wishing to practice real estate lawfully must be licensed to provide such service and earn a commission or fee.

In the 1990s, BREA and the National Association of Realtors signed a Bilateral Agreement that effectively acknowledges both countries' licensing and immigration laws while establishing a business protocol that allows a licensed association member in one country to refer business to a licensed association member in the other country. No international real estate agent can practice real estate in The Bahamas without a valid BREA license and the proper Bahamas immigration status.

Yes, any person wanting to build on or renovate a property must first submit architectural plans (including structural, mechanical, electrical and plumbing) for review and approval by the Town Planning Board and then obtain a Building Permit from the Ministry of Works.

There is no personal or corporate income tax, capital gains tax and inheritance tax assessed by the Bahamas Government. There is no sales tax on goods, but Value Added Tax (VAT) on goods and services.

The Bahamas Government's primary source of revenue is duty charged on the landed cost (i.e. first cost plus shipping) of all items brought into the country. Importation duty ranges from 0% to as much as 220%. The average duty paid on most imported goods is 35%. The Government then assesses VAT on the landed cost plus the importation duty.

Obtaining residency in The Bahamas does not entitle you to work in the country. International buyers must apply to the Ministry of Immigration to receive the appropriate work status.

The following are some of the areas targeted for international investors:

• Touristic resorts
• Upscale residential development – condominiums, timeshares and second-homes
• Information and data processing services
• Assembly industries
• High-tech services
• Light manufacturing for export
• Captive insurance
• Agro-industries



The following are areas reserved explicitly for Bahamians:

• Wholesale and retail operations
• Commission agencies engaged in import/export trade
• Real estate and domestic property management agencies
• Domestic newspaper and magazine publications
• Domestic advertising and public relations firms
• Security services
• Domestic distribution of building supplies
• Construction companies
• Personal cosmetic/beauty establishments
• Commercial fishing
• Auto and appliance service operations
• Public transportation
• Landscaping



The above lists are not exhaustive, and investors interested in areas not mentioned are encouraged to bring their interest to the attention of the Bahamas Investment Authority.

Three schools offer the International Baccalaureate program:

• Lyford Cay International School (Nassau – K-12)
• St. Andrew's International School (Nassau – K-12)
• King’s College (Nassau)
• Lucayan International School (Freeport – K-12)



There are several other successful and popular private schools in The Bahamas, primarily located on New Providence:

• Kingsway Academy (K-12)
• Queen's College (K-12)
• St. Augustine's College (7-12)
• Tambearly School (1-9)
• Windsor School (K-12)