What is the stamp duty rate in the Bahamas for foreign buyers?

Foreign buyers pay a flat 10% VAT on conveyance regardless of property value. This is typically split equally between buyer and seller in a gross sale, so the buyer's effective share is 5%. In a net sale, the buyer may be required to cover the full 10%. The split is negotiable and should be stated in the Agreement for Sale.

Bahamas Closing Cost Calculator 2026 | Stamp Duty, Legal Fees and Total Costs

Q: Do Bahamian citizens pay the same stamp duty as foreign buyers?

No. Bahamian citizens pay graduated VAT rates: 2.5% for properties under $100,000, 4% for $100,001-$300,000, 6% for $300,001-$500,000, 8% for $500,001-$700,000, 9% for $700,001-$1,000,000, and 10% for properties over $1,000,000. First-time Bahamian homebuyers get a preferential 4% rate for properties between $300,000 and $500,000.

Glenn Ferguson here - licensed Bahamas real estate agent, Residency Consultant, and Bahamas MLS member with 24+ years across all islands. I built this calculator so you can see exactly what a Bahamas property purchase costs before you call. Enter your numbers below and get instant buyer and seller breakdowns. If you want a personalised pro-forma with attorney introductions, WhatsApp me or call 1-(242)-395-8495.

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Bahamas Closing Cost FAQs

What are closing costs when buying property in the Bahamas?

Closing costs for buying Bahamas property typically total 7-12% of the purchase price for the buyer. The largest cost is VAT on conveyance (commonly called stamp duty), which is a flat 10% for foreign buyers and graduated 2.5-10% for Bahamian citizens based on property value. This is usually split 50/50 between buyer and seller in a gross sale. Buyers also pay attorney fees (2.5% of purchase price plus 10% VAT on the fee), title search fees, recording fees, and Investments Board registration for non-Bahamians. There is no VAT on the sale price itself, only on professional services like legal fees and commissions.

What is the stamp duty rate for foreign buyers in the Bahamas?

Foreign buyers (non-Bahamian citizens) pay a flat 10% VAT on conveyance regardless of property value. This is typically split 50/50 between buyer and seller in a gross sale, making the buyer's effective share 5%. In a net sale, the buyer may cover the full 10%. The split is negotiable and should be stated clearly in the Agreement for Sale. Since July 2023, the formal term is "VAT on conveyance" though "stamp duty" remains widely used. The Conveyancing Amendment Act 2025 now requires a VAT invoice from the Department of Inland Revenue before deed execution.

Do Bahamian citizens pay different stamp duty rates?

Yes. Bahamian citizens pay graduated VAT rates based on property value: 2.5% for properties under $100,000; 4% for $100,001-$300,000; 6% for $300,001-$500,000; 8% for $500,001-$700,000; 9% for $700,001-$1,000,000; and 10% for properties over $1,000,000. First-time Bahamian homebuyers receive a preferential 4% rate for properties valued between $300,000 and $500,000 (instead of the standard 6% for that bracket).

What are typical attorney fees for a Bahamas property purchase?

The Bahamas Bar Association suggested scale fee is 2.5% of the purchase price plus 10% VAT on that fee, for each side. Both buyer and seller require separate legal representation by qualified Bahamian attorneys. For unregistered land, fees are typically higher at 3.5% or more due to additional conveyancing work. Attorney responsibilities include title search, conveyancing, obtaining the VAT invoice from the Department of Inland Revenue, Investments Board registration (for non-Bahamians), and liaising with the opposing attorney. On higher-value properties, the percentage may be negotiated downward.

Are there any other taxes on Bahamas property?

The Bahamas has no income tax, no capital gains tax, and no inheritance tax. Annual real property tax is assessed on market value at progressive rates: owner-occupied properties are exempt on the first $300,000 of value, taxed at 0.625% on $300,001-$500,000, and 1% above $500,000. The annual cap is $150,000 per the Real Property Tax Amendment Act 2023. If you rent your property short-term (stays under 45 days), you will need a Home Owner's Residential Certificate ($200 processing plus $500 issuance) and a business licence. VAT at 10% applies to short-term rental income and all professional services.

Who do you call to buy a house in the Bahamas?

Glenn Ferguson is a licensed Bahamas real estate agent and Residency Consultant with 24+ years of experience across all islands including Nassau, Paradise Island, Eleuthera, Exuma, and the Abacos. He provides personalised closing cost pro-formas, qualified attorney introductions, and full residency coordination for buyers pursuing Economic Permanent Residency. Glenn's approach is numbers-first, delivering carry cost analysis, rental projections, and comparable market data before you commit. Call or WhatsApp 1-(242)-395-8495. Learn more about Glenn's credentials and track record on his authority page.

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Explore more guides from Glenn Ferguson:

How to Buy a House in the Bahamas Eleuthera Real Estate Jack's Bay Club Aqualina Residences One Cable Beach Goldwynn Penthouses Ask Glenn

Verified Sources (2023-2026)

Bahamas Real Estate Association (BREA) - closing cost guidelines and commission rates
Value Added Tax Act, as amended July 2023 - graduated VAT rates for Bahamian citizens, flat 10% foreign buyer rate
Bahamas Bar Association - suggested attorney fee scale (2.5% plus VAT)
Real Property Tax Amendment Act 2023 - progressive rates and $150,000 annual cap
Department of Inland Revenue - VAT on conveyance procedures and invoicing requirements
Conveyancing Amendment Act 2025 - VAT invoice requirement before deed execution
Alexiou Knowles and Co. - real estate transaction overview for non-Bahamian purchasers
Bahamas Investment Authority - Investments Board registration requirements for foreign buyers

This calculator provides estimates based on standard Bahamas government rates and typical transaction structures as of February 2026. Actual costs may vary based on specific transaction terms, attorney fee negotiations, property location, and current government policy. VAT rates reflect the Value Added Tax Act as amended. This tool is not legal or tax advice. Consult a licensed Bahamian attorney and accountant for your specific transaction.

Bahamas Closing Cost Calculator

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Verified Sources (2023-2026)