What Does It Really Cost to Own a Home in The Bahamas?
Annual ownership costs by neighborhood — utilities, insurance, HOA, tax, maintenance, and management. Real numbers from a local expert with 24+ years on the ground.
By Glenn Ferguson • Updated February 2026
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Quick Answer
Expect annual ownership costs of 3–5% of your property's value. For a $500,000 Nassau home, that's approximately $15,000–$25,000 per year. For a $2M luxury property in a gated community, costs can reach $50,000–$80,000 annually. The biggest surprise? Electricity — 2–3x US mainland rates because The Bahamas generates power from imported oil.
The Complete Annual Cost Breakdown
I've been advising international buyers for over 24 years, and the question I hear most often after "can I buy?" is "what will it cost me each year?" Here's what you'll actually pay, with real numbers current as of 2026.
| Expense | Modest ($300K–$500K) | Mid ($500K–$1.5M) | Luxury ($1.5M–$5M+) |
|---|---|---|---|
| Property Tax | $0–$1,560 | $1,560–$12,500 | $12,500–$50,000 |
| Electricity | $2,400–$4,800 | $4,800–$7,200 | $7,200–$15,000+ |
| Water | $600–$1,200 | $900–$1,800 | $1,200–$3,600 |
| Insurance | $2,500–$5,000 | $5,000–$15,000 | $15,000–$40,000+ |
| HOA Fees | $0–$3,600 | $3,600–$12,000 | $12,000–$36,000+ |
| Maintenance | $2,000–$5,000 | $5,000–$12,000 | $12,000–$30,000+ |
| Prop. Management | $1,200–$3,000 | $3,000–$8,000 | $8,000–$20,000+ |
| Internet/Cable | $1,200–$1,800 | $1,200–$2,400 | $1,800–$3,600 |
| Annual Total | $10,000–$25,000 | $25,000–$60,000 | $70,000–$200,000+ |
Electricity: The Cost That Surprises Everyone
Bahamas Power & Light is the sole provider on New Providence. Power is generated from imported diesel, so your bill includes a fuel surcharge that often exceeds the base rate. For a 3-bedroom home running central AC 8–10 hours/day, expect $300–$500/month. Summer months spike to $600–$800. Larger homes routinely see $800–$1,200.
Smart buyers reduce costs with solar panels (payback 4–7 years), energy-efficient inverter AC, and ceiling fans. Some communities like Albany have their own power generation.
Home Insurance: The Hurricane Question
Budget 1–2% of replacement value annually. Many policies separate basic coverage from windstorm/hurricane — the hurricane portion is by far the most expensive. Beachfront properties at a $2M value might carry $20,000–$30,000 annually; inland gated-community homes of similar value, $12,000–$18,000. Major insurers: Bahamas First, Summit Insurance, ICB.
Annual Costs by Neighborhood
Palm Cay
Sandyport
Old Fort Bay
Albany
Ocean Club Estates
Cable Beach Condos
Property Tax: Lower Than You Think
No income tax. No capital gains tax. No inheritance tax. Real property tax is capped at $50,000/year regardless of value.
| Assessed Value | Rate | Amount |
|---|---|---|
| First $250,000 | Exempt (owner-occupied) | $0 |
| $250,001–$500,000 | 0.625% | $0–$1,562 |
| $500,001–$5,000,000 | 1.0% | $1–$45,000 |
| Over $5,000,000 | 1.0% (capped) | $50,000 max |
Property Management for Absentee Owners
Basic caretaker ($100–$300/month): Weekly checks, running AC/water, mail, light gardening.
Full management ($300–$800/month or 15–25% of rental income): Marketing, guests, cleaning, maintenance, reporting.
Hurricane prep (seasonal): Shutters, furniture storage, utility shutdown, post-storm inspection.
Glenn's Advice
Don't skip property management. Salt-air, high-humidity climate punishes neglected properties. I've seen 6-month vacant homes develop mold and plumbing issues costing far more than a year of caretaker services.
Costs Most Guides Don't Mention
Import duties on furnishings: 25–45% duty plus 10% VAT. A $50K US furniture order costs $70K–$80K landed.
Landscaping & pool: $150–$400/month gardening; $150–$300/month pool service.
Pest control: $50–$100/month. Termite bonds highly recommended.
Generator: $5,000–$25,000 installed; $300–$600 annual maintenance.
Frequently Asked Questions
Are utilities included in condo HOA fees?
How can I reduce electricity costs?
Do I need hurricane insurance?
How do I get a cost estimate for a specific property?
Who should I call to buy a home in The Bahamas?
Ask Glenn About Buying a Home in The Bahamas
24+ years helping international buyers find the right property. No pressure, no obligation — just expert guidance from someone who knows every neighborhood firsthand.
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Bahamas Property Tax Calculator
Complete Guide to Buying Real Estate in The Bahamas
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