Beautiful marinas are everywhere in the Bahamas because of great sailing.
Non-Bahamians who don’t own property in the Bahamas and who are buying less than five acres for single family use need only to register their investment with the government. The same principle applies to non-Bahamians buying improved property under 2 acres which is developed as a single family residential property.
Second homeowners in the Bahamas may apply to the Immigration director for an annual home owner’s resident card. If the director’s satisfied that the person is of good character, can support himself and his dependents and so on, he’ll issue a card for a fee. If a Bahamas property purchase is for other than single family use or is over 2 acres in size, then a government permit is required.
The Government Stamp Duty on Property Conveyances
A graduated tax is payable on the conveyance of all real property based on the following value:
• Up to and including $20,000.00 – 4%
• $20,001 to $50,000.00 – 6%
• $50,001 to $100,000.00 – 8%
• $100,001 to $250,000.00 – 10%
• $250,001 and over – 12%
First time Bahamian home owners are exempt from paying stamp duty on homes valued below $500,000.
• The stamp duty is generally shared equally between buyer and seller – unless otherwise agreed upon.
Real Property Tax Rates – Tax Act amended in 2009
The first $250,000 on owner occupied residential property is tax exempt.
• On the value of owner/occupied properties between $250,000 and $500,000, the rate is 3/4 of one percent.
• On the portion over $500,000, the tax rate is 1% of the market value of the property.
For unimproved Bahamas property other than that exempt under the provisions of the Real Property Tax Act (section 39):
• Upon that part of the market value that does not exceed $3,000 a fee of $100.00
• Upon that part of the market value which exceeds $3,000 but does not exceed $100,000 a tax rate of 1% per annum of the market value of the Bahamas property.
• Upon that portion above $100,000, the rate is 1.5%.
For any other property, including non-exempted owner-occupied property:
• Upon that part of the market value that does not exceed $500,000 a tax at the rate of 1% per annum of the market value;
• Upon that part of the market value in excess of $500,000 a tax at the rate of 2% of the market value of the Bahamas property.
Colorful Bahamian houses showcase the Bahamas culture.
Exemptions
Bahamas property owned by Bahamians and situated in the Family Islands is exempt from a property duty. Bahamas property approved as commercial farm land (by the Ministers of Agriculture, Trade and Industry and Finance) is eligible for property tax exemptions.
Also exempt from property tax:
• Unimproved Bahamas property owned by Bahamians (in New Providence or the Family Islands), meaning property without physical additions or alterations, or any works benefiting the land which have not increased the market value thereof by $5,000 or more;
• Bahamas property used exclusively for charitable or public service from which no profit is derived.
• All property located in Freeport, Grand Bahama.
Owner-Occupied Home Rentals
Proprietors of owner-occupied rental homes of one of more bedrooms are required to collect a ten percent hotel guest tax from their tenants. What is an owner-occupied rental home? It’s a home that the owner uses exclusively as a dwelling house on a permanent or seasonal basis. Licences to rent are available through the local Family Island Administrator’s Office, or the Hotel Licensing Department of the Bahamas Ministry of Tourism and Aviation in Nassau, Bahamas.
