Are There Property Taxes in The Bahamas

Are There Property Taxes in The Bahamas?

Welcome to another edition of Bahamas Real Estate Brief with Bahamas Luxury real estate specialist and residency consultant Glenn Ferguson. Today we are answer the frequently asked question: “Are There property taxes in The Bahamas/“

When buying and owning property in the Bahamas, there are two sets of property taxes, that you must be aware of.  The first is, the Government taxes on Property Conveyances. This is paid when you buy your property in The Bahamas.

GOVERNMENT TAXES ON PROPERTY CONVEYANCES

There is a 10% Government Stamp Duty, on all property transactions valued at $100,000 or more.

2.5% Government Stamp Duty, applicable on all property transactions valued at $100,000 or less.

The usual practice in the Bahamas, is for the tax to be shared equally between the buyer and seller, unless otherwise agreed upon.

A 12% Value Added Tax (VAT ), is charged on real estate services, including appraisals, legal work, commissions and insurance.

While these are the current rate of taxes, Always bear in mind, that,  Laws and policies are subject to change. 

The second taxes, that you will have to pay on your property in the Bahamas is, The ANNUAL REAL PROPERTY TAX.

ANNUAL REAL PROPERTY TAX RATES

The rates of tax on real property are as follows:

In respect of owner-occupied property:

• The first $250,000 of market value is tax exempt
• More than $250,000 and not exceeding $500,000 of market value is 0.625%
• More than $500,000 and not exceeding $5,000,000 of market value is 1%
• More than $5,000,000 of market value is ½% (capped at $50,000 annually)

In respect of unimproved property: (other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act)

• First $7,000 of market value is $100
• More than $7,000 of market value 2%

In respect of any other property:

• First $500,000 of market value is 1%
• More than $500,000 of market value is 2%

The following EXEMPTIONS may apply.

• Property owned by Bahamians, and situated in the Family Islands, is exempt from property tax. 
• Property approved as commercial farm land, (by the Minister of Agriculture and Marine Resources, and the Minister Finance), may be eligible for property tax exemptions.
• Unimproved property owned by Bahamians, meaning property, without physical additions, or alterations, or any works benefitting the land, which have not increased the market value thereof by $5,000 or more;
• Places of religious worship; school buildings and their gardens and playing areas;
• Property owned by foreign governments;
• Property owned by foreign nations, used for consular offices, or residences of consular officials, and employees;
• Property used exclusively for charitable, or public service, from which no profit is derived.

If you have questions, about buying, leasing or selling real estate in The Bahamas, call or WhatsApp our luxury real estate specialist, and residency consultant, Glenn Ferguson at, 1-(242)-395-8495, and let him help you get the answers to your Bahamas real estate questions.