Bahamas Purchase Process

Current Real Estate Legislation

The International Persons Landholding Act 1993 encourages foreigners to purchase a second home in the Bahamas. If a non-Bahamian acquires a single family dwelling or vacant land to be used in the construction of such a dwelling then he no longer need obtain a permit from the Government (Investments Board) prior to purchase. He need only register the acquisition subsequently with The Investments Board.

Note that the foreigner will require an application for, and approved permit, if (1) the property is undeveloped land of five acres in size or larger (2) the property is not a private residence, or is not intended for development as such.

The Act offers further incentives including the provision that a foreigner no longer pays a double rate of stamp duty.

Furthermore, a foreigner owning a home in the Bahamas is now able to obtain an annual home owner resident card (with application and a fee). This card authorizes the entry of the holder and his immediate family provided there are no restriction under the Immigration Act.

Schedule of Fees

Application for registration - $25.00
Application for permit - $25.00
Certificate of Registration
(A) the value of the property is $50,000 or less - $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
Home owner resident card - $500.00

Stamp Tax

Stamp tax is payable on all conveyances, assignments or transfers of all real property:

Up to and including $20,000 - 2%
From $20,000.01 to $50,000 - 4%
From $50,000.01 to $100,00 - 6%
From $100,000.01 to $250,000 - 8%
$250,000.01 and over - 10%

It is customary for the tax to be shared equally between buyer and seller unless otherwise agreed upon.

Real Property Tax

Owner Occupied Property
First $250,000 - tax exempt
Next $250,000 - % of market value*
Excess over $500,000 - 1.0% of market value*
Other Property including Unimproved Property
First $100,000 - 1% of market value*
Excess over $100,000 - 2% of market value*
*market value is defined as the amount the property would realize if sold in the open market without any encumbrances or restrictions.

The Purchase Process

Once the terms and conditions of a purchase have been agreed upon between the buyer and the seller your Broker will draw up a Sales Agreement (a written contract) which includes a description of the property and a closing date. At this time a 10% deposit is usually obtained and a title search done.

On the closing date a conveyance is executed and the balance of monies paid including stamp duty, property tax, outstanding bills and the sales commissions. The legal fees incurred during this process usually range from 1.5%-2.5%.

All persons having closed a real property purchase should ensure that their deeds and title are recorded in the Registry of Records in Nassau at a minimal registration fee.

Non-Bahamians should also register their investment with the Central Bank of The Bahamas Exchange Control to insure that upon resale they will be able to remit the net proceeds of the sale outside of the Bahamas in the currency of the original investment.

Contacts

Bahamas Investment Authority
Office of The Prime Minsiter
Cecil-Wallace Witfield Centre
Cable Beach

P.O. Box CB 10980
Nassau, Bahamas
TEL: (242) 327-5970-4
FAX: (242) 327-5907
www.bahamas.com/investment

Bahamas Real Estate Association
Shirley Street
P.O. Box N-8860
Nassau, Bahamas
TEL: (242) 325-4942
FAX: (242) 322-4649

Bahamas Financial Services Board
Windermere House East Bay St
P.O. Box SS-5539
Nassau, Bahamas
TEL: (242) 393-8777
FAX: (242) 393-9021
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Central Bank of The Bahamas
Fredrick Street
P.O. Box N-4868
Nassau, Bahamas
TEL: (242) 322-2193
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Computitle Ltd Title Research
Parliament Street
P.O. Box N-4645
Nassau, Bahamas
TEL (242) 322-7366