There are no restrictions on Foreigners buying property. The only exception is a permit from the Government before the transaction, if the property is an undeveloped land and is greater than five acres. If otherwise, the property must only be registered with the Investment Board and the Central Bank after the transaction.
The process starts with finding a desirable Property by the assistance of an agent or by the purchaser’s interests.
A deposit is determined after the property is decided, which is normally 10%, and the property is taken off the market.
The buyer of the property will hire an attorney to settle on the legality of the title and to verify for any hindrances in place.
The attorney will complete the title search, exchange of ownership matters, will handle the trade and expenditure of all monies as well as supervise the signing and listing of all credentials.
The registration of the purchase must be applied to the Office of the Prime Minister.
The application should be submitted together with a copy of the proof of ownership, and confirmation of payment of Stamp Duty and Real Property Tax.
The stamp tax is shared by the buyer and seller and they are accountable for their individual attorney's fees.
After the title has been shown and the balance of the purchase is paid, the property is transferred under the ownership of the new owner.
For registration purposes the buyer must pay numerous fees for the property. These fees are not expected to exceed 0.5% of property value and accounted as minimal.
Stamp Duties & Taxes
Individuals on permanent residency having the work permit are exempted from Government Stamp Duty on purchasing property in Bahamas. For first time home owners an approval of the application is required if the home is of a value under $250,000.
A graduated tax is payable in the Bahamas for the following values:
Up to and including $20,000- 2%
From $20,000.01-$50,000.00-4%
From $50,000.01-100,000.00-6%
From $100,00.01-250,000.00-8%
Over $250,000.01-10%
Real Property Tax
On properties ranging from $250,000 to $500,000 the property tax is charged yearly at a rate of 3/4% of the full market value. The portion in excess of $500,000 is taxed at the rate of 1% of the full market value.
Exemptions
The first $250,000 is exempt for tax purposes, for owner occupied property.
Unimproved property if owned by a Bahamian is exempted for tax.
Property owned by a Bahamian in the family islands is also tax exempt.
There are no restrictions on Foreigners buying property. The only exception is a permit from the Government before the transaction, if the property is an undeveloped land and is greater than five acres. If otherwise, the property must only be registered with the Investment Board and the Central Bank after the transaction.