Buying Real Estate in The Bahamas

A Simple Process

Find Your Property
This is where we start our relationship. Work with one of our friendly, experienced agents to find exactly the right property for you. We take what we do very seriously and we want to get to know you and what you are looking for.

Financing
There are many options and as everyone has unique circumstances this is a topic for discussion with your agent, who can advise and guide you.

Deposit
Once you've decided on your property a deposit will be required. The property is then taken off the market.

The Sales Agreement
Both buyer and seller sign an agreement specifying the terms of the transaction. Your attorney will complete a title search, conveyance (exchange of ownership), handle the exchange and disbursements of all monies as well as oversee the signing and registration of all documents.

Closing
After good title has been shown and the balance of the purchase is paid, the property is conveyed to the new owner. All closing costs, including legal fees, government stamp tax, real estate commissions and recording fees are disbursed. Buyer and seller typically share the stamp tax and are responsible for their individual attorney's fees.

Stamp Duties & Taxes

Bahamas Government Stamp Tax on Property Conveyances

A graduated tax is payable on the conveyance of all real property 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%

Buyer and seller normally split the Government stamp tax.

Permanent residents with the right to work are exempted from Government Stamp Duty on a home purchase if they are first time home owners and the home is of a value under $250,000. This is subject to application approval.

Commissions

Real Estate Commissions
Unimproved property: 10% of the sales price
Improved property: 6% of the sales price
Commercial property, building or business: 10 % of the sales price
Seller is normally responsible for real estate commissions.

Legal Commissions
Legal fees can vary, but average around 2.5% of the selling price of the property. There is also a small recording fee when the title deeds are recorded at the Public Registry.

Buyer and Seller are normally responsible for their own attorney fees.

Real Property Tax

Property Tax is charged annually at a rate of 3/4% of the full market value of the property from $250,000 to $500,000

On that portion in excess of $500,000 the rate of tax is 1% of the full market value of the property.

The maximum annual tax for a property shall not exceed thirty five thousand dollars.

Exemptions
For owner occupied property the first $250,000 is tax exempt.

Unimproved property is tax exempt if owned by a Bahamian.

Property owned by a Bahamian in the family islands is also tax exempt.