International Persons Landholding Act
NO. 41 OF 1993 INTERNATIONAL PERSONS LANDHOLDING ACT 468
AN ACT TO REPEAL THE IMMOVABLE PROPERTY (ACQUISITION BY FOREIGN PERSONS)ACT, CHAPTER 125 AND TO FACILITATE THE HOLDING OF LAND BY NON-BAHAMIANS AND BY COMPANIES UNDER THEIR CONTROL.
(Date of Assent: 31st December, 1993)
Enacted by the Parliament of The Bahamas.
1. This Act may be cited as the International Persons Landholding Act, 1993 and shall come into operation on the
1st day of January, 1994.
2. The Immovable Property (Acquisition by Foreign Persons) Act is hereby repealed.
3. - (1) A non-Bahamian, (other than a permanent resident or a non-Bahamian acquiring land or an interest in land
under a devise or by inheritance), who purchases or acquires an interest in a condominium, or property vacant or otherwise to
be used by him as a single family dwelling or for the construction of such a dwelling shall apply to the Secretary to the Board
to register the purchase or acquisition and the Secretary upon receipt of the respective fee specified in the Schedule shall register that purchase or acquisition in the register and issue a certificate to the applicant unless the property being acquired is undeveloped land and the non-Bahamian would by virtue of the acquisition become the holder of five or more contiguous acres of land in The Bahamas.
(2) A permanent resident who acquires land or an interest in land shall apply to the Secretary to the Board to have
the acquisition registered with the Board and the Secretary upon receipt of the respective fee specified in the Schedule shall register that purchase or acquisition in the register and issue a certificate to the applicant.
(3) A non-Bahamian who acquires land or an interest in land under a devise or by inheritance shall apply to the
Secretary to the Board to have the acquisition registered with the Board and the Secretary upon receipt of the respective fee
specified in the Schedule shall register the acquisition in the register and issue a certificate to the applicant.
(4) An application to the Board to have a purchase or acquisition registered under this section shall be in writing
signed by the non-Bahamian who made the purchase or acquisition or his attorney and shall be in the appropriate form in the
Schedule.
4. - (1) A non-Bahamian (other than a permanent resident or non-Bahamian acquiring land or an interest in land under
a devise or by inheritance) who intends to acquire land or an interest in land either by way of freehold or leasehold and which acquisition is not within section 3(1) shall obtain a permit from the Board to make the acquisition by making the requisite application and paying the appropriate fee specified in the Schedule to the Secretary to the Board otherwise any acquisition shall be null and void and be without effect for all purpose of law in the absence of such a permit; but the non-Bahamian making the acquisition shall be entitled to recover with such legitimate deductions as may be justified in law any and all monies paid by him as consideration for the acquisition.
(2) The Board may with respect to an application for a permit in its absolute discretion grant or refuse to grant a permit.
(3) An application to the Board for the grant of a permit shall be in writing signed by the non-Bahamian seeking the permit or his attorney and shall be in the form in the Schedule.
5. - (1) The documents whereby any acquisition by a non-Bahamian of an interest in land is made and to which section
3 applies together with the respective certificate issued by the Secretary to the Board shall be recorded in the Registrar
General Department and where the acquisition is recorded in that Department without requisite certificate that registration
shall be null and void and be without effect for all purposes of law.
(2) The documents whereby an acquisition of an interest in land is made and to which section 4 applies shall on NO. 41 OF 1993 INTERNATIONAL PERSONS LANDHOLDING ACT 469 being recorded in the Registrar General Department be accompanied by the requisite permit otherwise the recording in that Department without the permit shall be null and void and be without effect for all purposes of law.
(3) The priority of the transactions relating to the acquisition of land by non-Bahamians shall be no different from
that which relates to the acquisition of real property not affected by this Act.
6. Sections 3 and 4 shall not apply where the non-Bahamian acquiring or going into possession of the property is
a bank or trust company licensed under the provisions of the Banks and Trust Companies Regulation Act, or any other Act
replacing it or an insurer registered under the provisions of the Insurance Act, or any other Act replacing it where the acquisition or going into possession is under a mortgage or debenture.
7. Where a non-Bahamian acquires any land or an interest in land by or reason of that property becoming vested in him by virtue of any order of a court or where a non-Bahamian goes into possession of property as a mortgagee, then he shall make application to the Board to have the acquisition or going into mortgagee. possession registered with the Board and the Secretary to the Board upon receipt of the appropriate fee shall register that acquisition or going into possession and issue a certificate of registration to the applicant.
8. Nothing in section 4 shall be construed so as to require the grant of a permit -
(a) in respect of the acquisition of a non-Bahamian of any immovable property by way of judgment for foreclosure under a mortgage; or
(b) in respect of a foreign state upon which there has been conferred by agreement or treaty the right to acquire immovable property in The Bahamas, save however the non-Bahamian or the foreign state, as the case may be, shall make application to the Board to have that acquisition of interest in immovable
property registered with the Board and the Secretary to the Board upon receipt of the appropriate fee (if any) register that acquisition and issue a certificate of registration to the applicant.
9. - (1) Nothing in this Act shall be construed so as to require the registration with, or the grant of a permit by, the
Board of the acquisition of an interest in immovable property under a lease or letting agreement unless the lease or letting
agreement is for the purpose of trade or business and enables the lessee or tenant to prolong the term beyond twenty-one (21)
years in which case the lessee or tenant shall register the lease or letting agreement with the Board by making application and paying the appropriate fee therefor to the Secretary to the Board.
(2) A lease or letting agreement to which subsection (1) applies shall in the absence of registration with the Board
be null and void and be without effect for all purposes of law.
10. The rate of stamp duty payable by a non-Bahamian in respect of a transaction relating to the acquisition of an
interest in land shall be the same as that which would be payable by a Bahamian.
11. A non-Bahamian who owns a home in The Bahamas shall be entitled to make application to the Director of Immigration for an annual home owner resident card and the Director shall, notwithstanding anything to the contrary in the Immigration Act upon being satisfied of that ownership and that such person is not a member of a prohibitive class of persons within the meaning of The Immigration Act or is not otherwise undesirable and is able to maintain himself and his dependents in The Bahamas issue the card to the applicant upon payment by him of the specified fee in the Schedule entitling him, his spouse and minor children (if any) to enter and remain in The Bahamas for the duration of the card unless any of them is otherwise
prohibited under the provisions of that Act from entry into The Bahamas.
12. - (1) There is established for the purposes of this Act, an Investments Board which shall consist of -
(a) the Prime Minister, who shall be the Chairman of the Board; and
(b) such other Ministers as may be appointed by the Prime Minister.
(2) Subject to the provisions of this Act the Board may regulate its own proceedings.
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(3) The Secretary to the Board shall maintain a register in such form and containing such particulars as the Board
may direct for the purpose of effecting the registrations required by section 3.
(4) Notwithstanding anything to the contrary in any law a permit issued under the repealed Act shall be of the same effect as if it were issued by the Board under this Act and in that behalf the Board may extend the duration of or vary or
delete any conditions to which that permit was issued as the Board sees fit upon application by the holder of the permit.
(5) The Board may in its absolute discretion and on such terms and conditions as it may think fit validate any purported
acquisition or conveyance made contrary to the provisions of the repealed Act before the coming into operation of this
Act by issuing such permit as was necessary as if those provisions had not been repealed and the exercise of this power by the Board shall have the effect of causing the acquisition or conveyance to be full effect as if it were made subsequent to the grant of the permit.
(6) Where a non-Bahamian pursuant to an application has obtained a permit and in which application the intended
usage of the property acquired has been stated and there is subsequent to the issue of the permit a change in that usage the
non-Bahamian shall make application to the Board for a variation of the permit, otherwise the permit shall cease to be valid.
13. The Governor-General may, on the advice of the Board, by order amend the Schedule.
14. - (1) In this Act -
Bahamian company means a company incorporated and registered in The Bahamas where all its shares or other capital is beneficially owned by one or more citizens of The Bahamas directly or through another Bahamian company and it is not in any manner, whether directly or indirectly controlled by any non-Bahamians;
the Board means the Investments Board that is established under section 12;
certificate means a certificate of registration issued by the Secretary to the Board under section 3 certifying that an
acquisition by a non-Bahamian to which that section applies has been duly registered;
debenture includes every mortgage or charge by a company, whether floating or otherwise, on any of the company
property or on its undertaking or on its uncalled capital, and also every obligation by the company (not being a bill
of exchange or promissory note) for payment of a debt or the repayment of monies lent or to be lent, and also
debenture stock;
non-Bahamian means -
(a) a person who is not a citizen of The Bahamas; or
(b) a company incorporated in The Bahamas under the Companies Act where any of its shares or other capital is beneficially owned by a person who is not a citizen or where it is in any manner, whether directly or indirectly, controlled by one or more of those persons; or
(c) a company formed and incorporated at any place outside The Bahamas; or
(d) an international organization;
permanent resident means a person to whom a valid and subsisting permanent residence certificate granted under
section 13 of the Immigration Act relates, and a wife or dependent child of such a person whose name is endorsed
on the certificate under section 14 of that Act;
register means the register kept by the Secretary to the Board under section 12;
permit means a permit granted under section 4 by the Board for the purposes of this Act authorizing the acquisition,
or as the case may be, the holding of land by a non-Bahamian;
NO. 41 OF 1993 INTERNATIONAL PERSONS LANDHOLDING ACT
471
repealed Act means the Act mentioned in section 2;
Secretary to the Board means the person designated by the Prime Minister by notice in the Gazette as performing the
functions of Secretary to the Board for the purposes of this Act;
Share includes stock, and, in the case of a company not having a share capital, the interest or equity of a member in
the assets of the company;
(2) No share shall be deemed to be beneficially owned by a citizen of The Bahamas or a Bahamian company if -
(a) the citizen of The Bahamas or the Bahamian company owning that share is in any way under any obligation, other than by way of a bona fide mortgage or deben-ture, to, or otherwise may exercise any right attaching to that share at the instance of, or for, the benefit of any non-Bahamian; or
(b) that share is held by the citizen of The Bahamas or the Bahamian company jointly or severally with a
non-Bahamian.
(3) Notwithstanding subsection (2), a share shall be deemed to be beneficially owned by a citizen of The Bahamas or a Bahamian company if -
(a) it is owned by a citizen of The Bahamas or a Bahamian company as trustee and every person having a beneficial interest in the trust is a citizen of The Bahamas or a Bahamian company;
(b) it is owned by a citizen of The Bahamas or a Bahamian company as a nominee for another who is also a citizen of The Bahamas or a Bahamian company and no one is in any way under an obligation, other than by way of a bona fide mortgage or debenture, to exercise any right attaching to that share at the instance of, or for the benefit of, any person who is a non-Bahamian.
(4) For the purpose of this Act, a body or owner association of persons, whether corporate or not shall be deemed to be controlled by a non-Bahamian, if the Board is satisfied that effective control is, either directly or indirectly, or by reason of any arrangement, artifice or device vested in, or permitted to pass to, persons who are not citizens of The Bahamas or Bahamian companies.
(5) The provisions of this Act shall not apply to any share held by a company registered under the provisions of
the Banks and Trust Companies Regulation Act, or the Insurance Act, as a trustee of a settlement established by a citizen of
The Bahamas.
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Fees
(Part B.)
Application for registration $ 25.00
Application for permit $ 25.00
Upon issue of certificate of registration or issue of permit where -
(a) the value* of the property is $50,000 and under $ 50.00
(b) the value of the property is over $50,000 but under $101,000 $ 75.00
(c) the value of the property is $101,000 and over $100.00
*value in relation to a lease is the annual rent reserved times the number of years.
Home owner resident card $500.00
Objects and Reasons
Clause 2 repeals the Immovable Property (Acquisition by Foreign Persons) Act.
Clause 3 of this Bill provides that a non-Bahamian who purchases a condominium, or property for use as or for the construction of a single dwelling does not require a permit but need only to register the acquisition with the Investments Board
unless the non-Bahamian would be the holder of five or more contiguous acres of land. Similarly, where the acquisition of an
interest in immovable property is by a permanent resident or by the way of inheritance no permit is required but only the registration.
Clause 4 requires a non-Bahamian other than a permanent resident or a non-Bahamian acquiring any other property by
inheritance to obtain a permit from the Board by making application therefor where the non-Bahamian is making an acquisition of an interest in land to which section 3 does not apply.
Clause 5 makes it imperative for a registration certificate or permit to be recorded in the Registrar General Department
when the title documents are being recorded otherwise the certificate or permit would be null and void.
Clause 6 exempts banks and trust companies and insurance companies who acquire interests in land under a mortgage or
debenture from the requirement to obtain a permit.
Clause 7 requires a non-Bahamian who holds land under a court order or who goes into possession as a mortgage to register
the acquisition or going into possession.
Clause 8 requires a non-Bahamian who acquires immovable property by way of mortgage or under a judgment for foreclosure
or by way of re-conveyance to register the fact with the Board. Similarly, a foreign state who acquires immovable
property in The Bahamas by right of a treaty or agreement.
Clause 9 requires certain business leases to be registered with the Board where the lease can be for twenty-one (21)
years or more otherwise the lease is defective.
Clause 10 provides the stamp duty payable by a non-Bahamian is the same as in the case of a Bahamian.
Clause 11 enables a non-Bahamian who owns and maintains a home in The Bahamas to obtain an annual home owner
resident card upon application and payment of a fee to the Director of Immigration authorizing his entry together with his
immediate family into The Bahamas unless their entry is otherwise barred under the Immigration laws.
Clause 12 provides for the establishment of the Investments Board; authorizes the Investments Board to validate conveyances
or acquisitions, vary the terms of previously issued permits and requires any variation in the usage of the registered
property or the property to be acquired to be indicted to the Board and application made for a variation of the permit.
Clause 13 enables the Governor-General to amend the Schedule by Order.
Clause 14 provides for the definition of certain terms used in the legislation.
No. 12 of 1995 AN ACT TO AMEND THE INTERNATIONAL PERSONS LANDHOLDING ACT, 1993.
[Date of Assent-9th May, 1995]
Enacted by the Parliament of The Bahamas.
Short title. 41 of 1993. 1. - (1) This Act which amends the International Persons Landholding Act, 1993 may be cited as the International Persons Landholding (Amendment) Act, 1996.
(2) This Act shall be deemed to have come into operation on the 1st day of January, 1994.
Amendment of the principal Act.
2. The principal Act is amended by the insertion after section 7 of the following section - Exemption of religious organizations.
7A. Nothing in sections 3 and 4 shall be construed so as to require a certificate of registration or the grant of a permit in respect of the acquisition of immovable property by any religious organization incorporated as a non-profit company in accordance with Part VI of the Companies Act, 1992 or incorporated by Act of Parliament either in its own name or in the name of any of its functionaries including trustees..
No. 32 of 1995 AN ACT TO AMEND THE INTERNATIONAL PERSONS LANDHOLDING ACT, 1993.
[Date of Assent-16th November, 1995]
Enacted by the Parliament of The Bahamas.
Short title. 41 of 1993. 1. This Act, which amends the International Persons Landholding Act, 1993 may be cited as the International Persons Landholding (Amendment) Act, 1995.
Amendment of section 4 of the principal Act.2. Section 4 of the principal Act is amended by the insertion after subsection (3) of the following -
(4) Notwithstanding anything contained in sub-section (1) the Board may in its absolute discretion and on such terms and conditions as it may think fit validate any purported conveyance, mortgage, transfer of mortgage or other acquisition of an interest in land made contrary to subsection (1) by issuing a permit to the non-Bahamian; and the exercise of the power by the Board under this subsection shall have the effect of causing the conveyance, mortgage, transfer of mortgage or other acquisition which by subsection (1) is to be null and void to be valid and of full effect as if it were made ubsequent to the grant of a permit..
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