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

Many international buyers assume they will split the commission or pay their own agent separately. That is not how it works in the Bahamas. The listing agreement between the seller and the listing agent determines the commission, which is split between the listing and buyer's agents. You, as the buyer, pay zero.

Registered Land

The property has been formally surveyed and recorded in the Land Registry. The government issues a Certificate of Title — the strongest proof of ownership available. Title disputes are rare. Attorney fees are lower (3.5% minimum). Most properties in modern gated communities (Albany, Lyford Cay, Ocean Club Estates, Old Fort Bay, Palm Cay, Goldwynn, Baha Mar) are registered.

Unregistered Land

Ownership is tracked through the Registry of Records via a chain of conveyances — paper deeds that must be traced back 30+ years. Title risk is higher because the chain can have gaps, errors, or competing claims. Attorney fees are higher (5% minimum) to account for the additional due diligence required. Unregistered land is more common in the Out Islands and older Nassau neighbourhoods.

Property Tax (owner-occupied)

First $300,000 of assessed value: exempt. $300,000 to $500,000: 0.625%. Above $500,000: 1%. Annual cap: $120,000 regardless of property value. This means even a $20M estate pays no more than $120,000/year in property tax.

Rental Income

Rental earnings are not subject to Bahamas income tax. Short-term rentals (under 45 days) are subject to 10% VAT. Long-term rentals (45+ days) are VAT-exempt. A business licence ($250–$1,250/year) is required for rental activity. Nassau luxury properties typically generate gross yields of 6–12%.

For the full breakdown, see Understanding Bahamas Property Taxes.

Homeowner's Resident Card — any property value

Annual fee: $500. Facilitates entry and exit but is not formal residency. Covers spouse and minor children. Available to any foreign property owner.

Annual Residence Permit

$1,000/year + $25/dependent. For financially independent individuals. Property ownership strengthens the application.

Economic Permanent Residency (EPR)

Minimum investment: $1,000,000 in Bahamas real estate. Lifetime permit. Covers spouse and dependents under 18. Government fee: $20,000 (standard) or $25,000 (with work rights in own business). 10-year property hold period. Minimum 90 days/year in-country. Pathway to citizenship after 10 years. Accelerated processing for $1,500,000+ investments.

What your attorney does

Your attorney handles the title search (30+ years of ownership history), due diligence, drafting the conveyance, Central Bank application (for foreign buyers), VAT payment administration, and Investments Board registration. They issue a formal Opinion on Title backed by professional indemnity insurance — your primary legal protection against title defects.

Choosing an attorney

Select a Bahamas-qualified attorney with specific experience in real estate conveyancing. Ask about their fee structure up front — the Bahamas Bar Association recommended minimums (effective January 2026) are 3.5% for registered land and 5% for unregistered land. Some attorneys charge above the minimum for complex transactions.

Why BREA licensing matters

BREA (Bahamas Real Estate Association) licensing requires education, examination, and ongoing professional development. Licensed agents are bound by a code of ethics and subject to disciplinary proceedings. The licence is your assurance that the person guiding a six- or seven-figure transaction meets minimum professional standards.

Why MLS access matters

The Bahamas MLS is the central database of all listed properties. An agent without MLS access can only show you their own listings or a limited selection — you may miss better properties at better prices. MLS access ensures you see the complete market.

For a detailed checklist of what to ask any agent before hiring them, see 10 Questions to Ask Before Hiring a Bahamas Realtor.