7 Things You MUST Know Before Buying Real Estate in the Bahamas

Looking to buy property in the Bahamas? Learn 7 essential things you must know before investing, including tax benefits, top locations, legal steps, and more. Get expert advice from Glenn Ferguson, Bahamas real estate agent and residency consultant. - ASK Glenn

If you’ve been considering buying property in the Bahamas, you’re not alone.

With its pristine beaches, year-round sunshine, and attractive tax advantages, it’s no surprise that the Bahamas is one of the most sought-after destinations for high-net-worth individuals.

But before you buy a house in the Bahamas, there are several crucial things you need to know to ensure your investment is secure and you’re getting the most out of your purchase.

Whether you’re looking for a luxury home, a private island, or a tax residency solution, these insights will guide you through the process.

Here are the 7 things you MUST know before buying real estate in the Bahamas.

What You Need to Know Before Moving to The Bahamas

1. The Bahamas Offers Lucrative Tax Benefits

One of the biggest draws of owning property in the Bahamas is its tax advantages.

If you’re a high-net-worth individual looking to secure your wealth and reduce your tax burden, the Bahamas is a tax-friendly haven.

Checkout the video - What you need to know before moving to the Bahamas

• No Income Tax: The Bahamas does not levy personal or corporate income tax.
• No Capital Gains Tax: Selling property or investments is tax-free.
• No Inheritance Tax: When it comes to passing on your estate, the Bahamas doesn’t impose any inheritance or estate tax.

These benefits make the Bahamas an attractive place for those looking to establish tax residency and enjoy its financial advantages.

As a property owner, you can apply for a Bahamas Permanent Residency (for investments of at least $750,000) or an Annual Residency Permit.

Additionally, the recent Bahamas Economic Permanent Residency Program offers accelerated processing for those investing significantly in real estate or contributing to local projects. Learn more about residency and tax benefits.

2. Foreigners Can Buy Real Estate – But There Are Legal Steps

Foreigners can easily buy property in the Bahamas, but legal steps must be followed.  The key step is obtaining approval from the Bahamas Investment Board, which is required for foreign buyers.

• Property Price: All Bahamas property purchases must be registered.
• Approval Process: The approval process typically takes 4-6 weeks. It’s relatively straightforward, but it’s crucial to have a local attorney to assist with the application and ensure that everything goes smoothly.

3. Choose the Right Location for Your Lifestyle and Investment

The Bahamas is made up of more than 700 islands and cays, each offering a different lifestyle. Whether you want Nassau's convenience or a private island's seclusion, there’s something for everyone.

• Nassau & Paradise Island:
  • Nassau remains the most active market, with real estate prices for luxury homes averaging around $1 million to $4 million in prime areas.
  • Paradise Island is home to iconic resorts and upscale properties, with waterfront homes commanding premium prices.
• Exuma:
  • The Exuma chain is becoming more popular, especially private islands.
  • Waterfront estates in Exuma can range from $2 million to $10 million, with private islands often exceeding this amount.
• Harbour Island:
  • Known for its exclusivity, Harbour Island's pink sand beaches attract ultra-wealthy buyers, with prices ranging from $5 million to $20 million for oceanfront properties.

Market demand is high in these areas, with private islands and beachfront properties seeing consistent price appreciation, particularly in Exuma and Harbour Island.

4. Understand Bahamas Real Estate Market Trends and Pricing

The luxury real estate market in the Bahamas has remained resilient even through recent global uncertainties. Prices for high-end properties vary widely, but the trend has been positive. Over the last 2-3 years, demand for private islands and secluded luxury estates has surged.

• Waterfront Properties: Properties on the water, particularly near Nassau or Exuma, have seen 5-10% appreciation in the past year, particularly for larger estates with exclusive features like private docks or access to private beaches.
• Private Islands: The demand for private islands continues to increase, with prices ranging from a few million dollars to over $50 million, depending on the island's location, size, and amenities.

According to recent market data from the Bahamas Real Estate Association (BREA), luxury properties in Nassau and Paradise Island have remained stable in value, while remote islands (such as those in Exuma) have shown a slight increase in demand, especially for those seeking privacy or second homes.

Tip: Be sure to work with a knowledgeable local Bahamas Real Estate Agent (required by Bahamian Law) who can provide the most up-to-date Bahamas market insights. Check out available Bahamas Property for Sale listings.

5. Be Prepared for the Additional Costs of Ownership

Buying real estate in the Bahamas comes with several ongoing costs beyond the initial purchase price.

• Bahamas Property Taxes:
  • The property tax rate in the Bahamas ranges from 0.75% to 1% of the property's assessed value, making it quite reasonable compared to other countries.
• Bahamas Homeowners Insurance:
  • Insurance premiums in the Bahamas can be high, particularly if you're buying a waterfront property or an island.
  • You’ll need comprehensive coverage for hurricane damage, which may increase the annual insurance cost.
• Maintenance:
  • Given the tropical environment, maintaining properties, especially luxury homes with pools, gardens, and docks, is essential.
  • Factor in landscaping, security, and regular upkeep to preserve the value of your property.
• Utilities:
  • If you’re purchasing a property on a more remote island, desalinated water or generator fuel can add costs.
  • In Nassau, utility costs are more standard, but for private islands, additional infrastructure costs should be planned for.

These extra expenses can add up quickly, so it’s essential to budget accordingly. Get in touch for a detailed cost breakdown.

6. The Bahamas is a Secure and Stable Investment Destination

The Bahamas offers a stable political environment and strong property rights protection, making it an ideal place for long-term investment. The country’s economic stability and transparent regulatory framework also ensure that investors are protected.

• Political Stability:
  • The Bahamas has a long-standing democratic government that supports foreign investment.
  • There have been no significant changes in the legal framework that would negatively impact foreign buyers.
• Growing Economy:
  • Despite global economic challenges, the Bahamas’ economy remains resilient, with steady demand for both residential and commercial properties.

The luxury real estate market has continued to grow, especially in areas like Nassau, Exuma, and Harbour Island, which have seen increased attention from international buyers, particularly in the post-pandemic era.

7. Establishing Bahamas Residency and Access to International Benefits

One of the biggest perks of buying property in the Bahamas is the opportunity to establish residency. There are multiple pathways to residency, including through property ownership.

• Bahamas Permanent Residency:
  • You can apply for Bahamas Permanent Residency if you invest at least $750,000 in Bahamian real estate.
  • This is a relatively low threshold compared to other Caribbean nations, making the Bahamas an attractive choice for those looking for a second home or tax residency.
• Global Mobility:
  • As a resident, you’ll enjoy the benefits of living in one of the most tax-friendly countries in the world, which also offers visa-free travel to many countries, including the U.S., Canada, and the EU. Additionally, the Bahamas’ location makes it an excellent base for international business or travel.

By securing a Bahamas Permanent Residency, you also gain access to a range of financial services and banking opportunities that are advantageous for those involved in global business. Learn more about residency options.

Purchasing real estate in the Bahamas presents incredible opportunities, especially for those looking for a combination of luxury living and strategic investment. Whether you’re interested in tax residency, privacy, or simply a stunning beachfront home, the Bahamas is a prime destination for high-net-worth individuals.

If you’re ready to explore your options or need guidance on finding the perfect property, call or WhatsApp 1-(242)-395-8495 or click ASK Glenn. As a local Bahamas Real Estate Agent and Residency Consultant, I’m here to guide you through every step of the process, from selecting the right property to securing residency and ensuring a smooth purchase. Call me Today!

Additional Resources:

• Browse available properties
• Current Bahamas market trends and data
• Permanent Residency details and application
• The Islands of The Bahamas

This article by Glenn Ferguson, Bahamas Real Estate Agent & Residency Consultant is not intended to be legal or tax advice. Professional Legal and Tax advice is advised