Frequently Asked Questions
The following information answers many of the questions prospective buyers have when looking to invest in property in The Bahamas. If you have other questions, please e-mail them to me at firstname.lastname@example.org, and I will do my best to answer them for you.
Are brokers and sales advisors in The Bahamas licensed?
Yes. Brokers and sales advisors are licensed by The Bahamas Real Estate Association (BREA). Qualifications for licensing include sitting a written exam. BREA is an international member of The National Association of Realtors (NAR)
(Value Added Tax)
2.5% where the value does not exceed $100,000
4% where the value exceeds $100,000 but does not exceed $300,000
6% where the value exceeds $300,000 but does not exceed $500,000
8% where the value exceeds $500,000 but does not exceed $700,000
9% where the value exceeds $700,000 but does not exceed $1,000,000
10% where the value exceeds $1,000,000.
Bahamian Citizens purchasing a home for the first time enjoy a VAT a lower rate of VAT on the stamping of their conveyances for purchases under $500,000.
$0 - $300,000 = 0%
Why should foreign property investors consider buying a home in The Bahamas?
The Bahamas attracts a very wide range of property investors, from large multi-million dollar estates and condo properties to modest homes. The beautiful locations of properties in the Bahamas, coupled with a safe investment climate, have created a demand for investment properties with positive returns. The Bahamian lifestyle is one that draws people back time and time again. Communities here provide extensive lifestyle, fitness, epicurean and social opportunities that are world-class while maintaining the relaxed atmosphere famous to the Caribbean.
What are the costs involved in buying or selling property?
Real estate commission
What is the rate of Real Property Tax in The Bahamas?
Owner-occupied property (owner resides and uses exclusively as a dwelling):
$0 - $300,000 = Exempt
$300,000 - $500,000 = 0.625%
Over $500,000 = 1%
Ceiling for Properties valued over $6,000,000 = $120,000
Commercial Properties (more than 4 units that are not owner-occupied):
$0 - $500,000 = 0.75%
$500,001 - $2,000,000 = 1%
Over $2,000,000 = 1.5%
*Bahamian citizens are not taxed on unimproved property in The Bahamas.
How do I go about getting a mortgage?
Most private and commercial banks offer mortgages to Bahamians, permanent residents and foreign investors. It is advisable to contact your local bank as soon as you decide upon purchasing a property. Your real estate advisor can supply a list of providers.
Silvina Andrews, Real Estate Broker
Please reach out with any questions or concerns that you may have regarding your real estate investment in The Bahamas.