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About The Bahamas
For a total area of 100,000 miles, and compromising over 700 islands, the sparkling waters of the Commonwealth of The Bahamas extend off the coast of Florida in a southeasterly direction. The Bahamas has been an independent country since 1973 and remains a member of the British Commonwealth. It is governed by the form of a parliamentary democracy and is one of the most politically stable nations in the Americas. Abundant natural resources and friendly welcoming people make The Bahamas one of the premier home-owning destinations in the world. Our protected tax-free environment, as well as our most-favoured nation status, continue to draw the discerning international purchaser to the beautiful, romantic islands of The Bahamas.
Legislation Regarding Real Estate Purchase
The International Persons Landholding Act, 1993, was enacted into law on January 1, 1994. This important legislation encourages and facilitates non-Bahamians in acquisition of real property in The Bahamas. In the main, The Act provides a simple process by which non-nationals may purchase real property, without special permits, providing that such property is for their personal use, does not exceed five acres in size and is their only property holding in The Bahamas. Registration with the Foreign Investment Board further guarantees repatriation of the purchasers’ funds should you ever sell your property. Any variations to these requirements are approved on their individual merits. The Act also makes provision for a property owner, and his/her dependents, to obtain an annual resident card and/or apply for permanent residency in The Bahamas. Otherwise, with proper documentation on arrival, stays up to eight months are permitted.
Buying Your Property
With the help of your trained real estate
professional, you will find the process of becoming a property owner in The Bahamas is very simple. A basic sales agreement is signed by both vendor and purchaser, 10% earnest money is placed in a government regulated escrow account and the transaction proceeds to conclusion. A Bahamian attorney must represent both sides of the sale, although nothing prevents both parties from agreeing to use the same legal counsel. The purchasers’ lawyer will conduct a thorough title search as well as establishing that all fees, taxes and dues are paid to date. The lawyer indemnifies the title against further action. Should you wish, mortgage money is available from several banks operating in The Bahamas.
After the purchasers’ lawyer offers his/her opinion of title, a
conveyance is executed to be signed by the vendor and, if there are covenants on the property, also by the purchasers. The
balance of the purchasing funds is deposited, disbursements are made and the new purchase is stamped and recorded by The Registry of Records in
Nassau.
Government Stamp Duty
This surcharge is levied by the Government of The Bahamas on all transfers, deeds of conveyance, gifts of property, mortgages or assignments and is based on the value of the consideration. It may be paid for by either party or shared between them.
| Less than and including $20,000 |
2% |
| $21,000 and including $50,000 |
4% |
| $50,001 and including $100,000 |
6% |
| $100,001 and including $250,000 |
8% |
| $250,001 and above |
10% |
Real Estate Commissions
According to the Real Estate Acts of The Bahamas, the following rates are the minimum permitted:
| Family Island Vacant Land |
10% |
| Family Island Developed Property |
6% |
| Corporate Rentals |
1 month’s rent (1 year lease) |
Real Property Tax
The taxable value of your property is based on the latest selling price. As
regards undeveloped land, you are responsible for reporting the value of the improvements as you make them.
The annual tax on owner occupied property shall not exceed $35,000.
Owner
occupied (excludes any renting of your home)
|
Value
|
Owner Occupied |
Other |
| First
$250,000 |
EXEMPT |
1% |
| To
$500,000 |
.75% |
1% |
| Excess of $500,000 |
1% |
2% |
Vacant Land
|
Value |
Tax |
|
| First $3,000 |
$30 |
|
| $3,001 - $100,000 |
1% |
|
| Excess of $100,000 |
1.5% |
|
Property Listings
With your consent, a licensed real estate broker is empowered to represent your property and authorized to show it to prospective buyers. The two most common forms of representation are exclusive and open listings. Under the terms of an exclusive agreement, your broker provides you with complete and effective marketing and
promotional services including presenting your property to other brokers and agents. An open listing provides you with the
opportunity to advertise and show your home yourself.
The Bahamas Real Estate Association
In The Bahamas, all real estate brokers and agents are required to be licensed. Membership in the Bahamas Real Estate Association guarantees the highest standards of knowledge, experience,
professionalism and ethics.
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