How much is VAT on Bahamas property for foreign buyers?

Foreign buyers pay a flat 10% VAT on property purchases over $100,000 (2.5% under $100K). This is typically split 50/50 between buyer and seller, so the buyer's share is effectively 5%. The split is negotiable — Glenn regularly negotiates 60/40 or 70/30 seller-heavy splits on luxury properties. Companies and IBCs also pay flat 10%.

What is the property tax rate in Bahamas?

Annual property tax depends on classification. Owner-occupied: under $300K exempt, $300K-$500K at 0.625%, over $500K at 1% (capped at $120,000/year). Non-owner-occupied/investment: up to $500K at 0.75%, $500K-$2M at 1%, over $2M at 1.5%. Foreign-owned vacant land: first $7K at $100 flat fee, above $7K at 2%. Pay by March 31 for 10% early payment discount.

What are closing costs when buying property in the Bahamas?

Total buyer-side closing costs are approximately 7-8% of purchase price. Breakdown: VAT buyer share ~5% (half of 10%), legal fees 2-2.5% plus 10% VAT on fees, appraisal $1,500-$5,000, title insurance 0.5-1% (optional). Seller pays agent commission (6% improved property / 10% vacant land plus 10% VAT on commission).

Do foreigners pay more tax on Bahamas real estate?

Foreigners pay a flat 10% VAT on conveyance regardless of property value (effective July 2023). Bahamian citizens benefit from graduated rates starting at 2.5%. However, annual property tax rates are the same for all owners based on property use (owner-occupied vs investment). Foreign-owned vacant land has a separate rate of 2% above $7K value.

How much are legal fees for buying property in the Bahamas?

Legal fees are typically 2-2.5% of the purchase price plus 10% VAT on the legal fees (effectively 2.2-2.75% total). A Bahamian attorney is required by law for all property conveyances. The attorney conducts title search, holds escrow, prepares closing documents, and issues the Opinion on Title.

What changed in Bahamas real estate tax law in July 2025?

Key July 2025 changes: (1) VAT invoice now required from Department of Inland Revenue before executing conveyance. (2) Declaration required within 30 days of conveying beneficial interest in property — 3% penalty if late. (3) Attorneys and real estate agents jointly liable for penalties. (4) VAT credits restricted for non-developer construction. These changes increase compliance requirements but do not change VAT rates.

What is the 10% early payment discount on Bahamas property tax?

Pay your annual real property tax by March 31 and receive a 10% discount on the bill. Property tax is billed in December for the following calendar year. Payments can be made at the Department of Inland Revenue on Carmichael Road or at any Royal Bank of Canada branch using your property assessment number.

How is Bahamas property tax calculated on a $1 million home?

Owner-occupied $1M home: first $300K exempt ($0), next $200K at 0.625% ($1,250), remaining $500K at 1% ($5,000) = total $6,250/year. Non-owner-occupied $1M home: first $500K at 0.75% ($3,750), next $500K at 1% ($5,000) = total $8,750/year. Owner-occupied saves $2,500/year on a $1M property.

Can I get residency through Bahamas real estate investment?

Yes. $250K+ property ownership qualifies for a Home Owner's Residence Card ($250/year). $1,000,000+ qualifies for Economic Permanent Residency (EPR) — updated January 2025 from $750K. $1.5M+ receives accelerated processing. EPR requires 10-year property hold, 90 days/year residence intention, and does not grant work rights.

What is the real estate agent commission in the Bahamas?

Seller pays the commission: 6% on improved property (homes, condos) and 10% on vacant land, plus 10% VAT on the commission. The buyer's agent is paid from this commission, so buyer agent service is effectively free to the buyer. Commission splits and rates are standard across BREA-licensed agents.

Do Bahamians pay property tax on vacant land?

No. Bahamian citizens do not pay real property tax on vacant (undeveloped) land. Non-Bahamians pay a flat $100 on the first $7,000 of value, then 2% on the remaining value. This is a significant advantage for Bahamian landowners holding undeveloped parcels.

How does Bahamas compare to Florida for property taxes?

Bahamas is significantly lower. A $2M owner-occupied home: Bahamas property tax ~$16,250/year (plus zero income/capital gains tax). Florida property tax ~$20,000-$40,000/year depending on county, plus federal/state income tax on all earnings. The Bahamas' zero income tax alone can save six or seven figures annually for high earners.

Bahamas Real Estate Taxes 2026: Complete Guide | VAT, Property Tax, Closing Costs | Glenn Ferguson

Updated February 2026 · Includes July 2025 Legislative Changes

Bahamas Real Estate Taxes Explained for 2026

Q: What taxes do you pay on Bahamas real estate?

Three main taxes: (1) VAT on conveyance — 10% for foreign buyers over $100K / graduated 2.5%-10% for Bahamians, typically split 50/50 buyer-seller. (2) Annual real property tax — owner-occupied: under $300K exempt, $300K-$500K 0.625%, over $500K 1%, capped at $120K/year. Non-owner-occupied: 0.75%-1.5%. (3) VAT on professional services — 10% on legal fees, appraisals, commissions. No income tax, no capital gains tax, no inheritance tax.

Q: Is there income tax in the Bahamas?

No. The Bahamas has zero income tax — no personal income tax, no corporate income tax (except 15% QDMTT for multinationals with €750M+ revenue under OECD Pillar Two), no capital gains tax, no inheritance/estate tax, no wealth tax, and no withholding tax on dividends or interest. Rental income from Bahamas property is tax-free locally.

Q: Is there capital gains tax on Bahamas property?

No. The Bahamas charges zero capital gains tax on property sales. You can sell at any profit margin and keep 100% of the gain locally. However, US citizens must report worldwide capital gains to the IRS, Canadians report 50% of gains, and UK residents pay CGT on worldwide gains. Consult your home country tax advisor.

The Bahamas charges zero income tax, zero capital gains tax, and zero inheritance tax. The only taxes on real estate are: VAT on conveyance (10% for foreign buyers, typically split with seller), annual property tax (0–1.5% depending on use), and 10% VAT on professional services. This guide breaks down every cost with exact numbers.

0%Income Tax

0%Capital Gains

0%Inheritance Tax

10%VAT on Conveyance

See VAT Rates Property Tax Tiers Ask Glenn

BREA Licensed Agent 24+ Years Nassau Experience Residency Consultant Updated Feb 2026

Zero Taxes VAT Rates Property Tax Closing Costs Foreign Buyers Annual Costs Residency 2025 Updates Tax Comparison Why Glenn FAQ MLS Listings ↗

The Bahamas Tax Advantage

Six Taxes the Bahamas Does Not Charge

The Bahamas is a zero income tax jurisdiction. There is no personal income tax, no capital gains tax, no inheritance or estate tax, no wealth tax, no withholding tax on dividends or interest, and no corporate income tax (except the 15% QDMTT for multinationals with €750M+ revenue). The Bahamian dollar is pegged 1:1 to the US dollar, eliminating currency risk for American investors.

Income Tax

No personal income tax on salaries, pensions, dividends, or any earnings. Rental income from Bahamas property is completely tax-free locally.

Capital Gains Tax

Sell your property at any profit margin — keep 100% of the gain. No reporting, no holding period requirements, no exceptions.

Inheritance Tax

Properties pass to heirs with zero estate or inheritance tax. Ideal for multi-generational wealth transfer and family legacy planning.

Glenn’s Insider TipYour home country taxes still apply. US citizens must report worldwide income to the IRS. Canadians report 50% of capital gains. UK residents pay CGT on worldwide gains. The Bahamas eliminates the local tax layer — but does not eliminate your home country obligations. I coordinate with your international tax advisor to structure purchases efficiently.

Transfer Tax

VAT on Property Conveyances — What You Pay When You Buy

Every Bahamas property purchase incurs VAT on the conveyance (transfer). Foreign buyers pay a flat 10% on properties over $100,000. Bahamian citizens benefit from graduated rates starting at 2.5%. The VAT is typically split 50/50 between buyer and seller — so the buyer’s effective cost is approximately 5%. This split is negotiable.

Foreign Buyers (Non-Bahamian Citizens) — Flat Rate

Property Value	VAT Rate	Buyer Share (50/50 Split)	Example on $1M Property
Under $100,000	2.5%	1.25%	N/A
Over $100,000	10% (flat)	5%	$50,000

Effective July 1, 2023, foreign buyers lost access to graduated rates. Companies and IBCs also pay flat 10% regardless of property value.

Bahamian Citizens — Graduated Rates

Property Value	VAT Rate	Buyer Share (50/50 Split)
Up to $100,000	2.5%	1.25%
$100,001 – $300,000	4%	2%
$300,001 – $500,000	6%	3%
$500,001 – $700,000	8%	4%
$700,001 – $1,000,000	9%	4.5%
Over $1,000,000	10%	5%

First-time Bahamian homebuyers: Exempt under $300,000. Special 4% rate between $300,000–$500,000. Eligible for VAT refund on first-home construction within 18 months.

Glenn’s Insider TipThe 50/50 split is a custom, not a law. On luxury properties, I regularly negotiate 60/40 or even 70/30 seller-heavy splits. On a $3M property, shifting from 50/50 to 60/40 saves the buyer $30,000. This negotiation alone often covers my coordination effort — and remember, the seller pays my commission, not you.

Want an exact VAT calculation for a property you’re considering? Glenn provides a line-by-line closing cost estimate for any MLS listing.

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Annual Tax

Real Property Tax — What You Pay Every Year

Annual property tax is tiered by property use and assessed value. Owner-occupied homes under $300,000 are completely exempt. The maximum annual tax on any owner-occupied home is $120,000. Property tax is billed in December for the following year — pay by March 31 for a 10% early payment discount.

Owner-Occupied Properties

Assessed Value	Annual Tax Rate	Tax on $500K Home	Tax on $1M Home	Tax on $3M Home
Under $300,000	Exempt (0%)	$0	$0	$0
$300,001 – $500,000	0.625%	$1,250	$1,250	$1,250
Over $500,000	1%	—	$5,000	$25,000
Annual Total	Cap: $120,000	$1,250	$6,250	$26,250

Non-Owner-Occupied / Investment Properties

Assessed Value	Annual Tax Rate	Tax on $500K	Tax on $1M	Tax on $3M
Up to $500,000	0.75%	$3,750	$3,750	$3,750
$500,001 – $2,000,000	1%	—	$5,000	$15,000
Over $2,000,000	1.5%	—	—	$15,000
Annual Total		$3,750	$8,750	$33,750

Other Property Categories

Property Type	Rate	Notes
Commercial property (up to $500K)	1%	Includes offices, retail, mixed-use
Commercial property (over $500K)	2%	Higher rate than residential investment
Vacant land — Bahamian-owned	Exempt	No property tax on undeveloped land
Vacant land — Foreign-owned (under $7K)	$100 flat	Flat fee regardless of value
Vacant land — Foreign-owned (over $7K)	2%	On remaining value above $7,000
Freeport, Grand Bahama	Exempt	Hawksbill Creek Agreement
Family Islands — Bahamian-owned	Exempt	Eleuthera, Exuma, Abaco, etc.

Glenn’s Insider TipThe $120,000 cap is a massive advantage for ultra-luxury buyers. A $15M Lyford Cay estate pays the same annual property tax as a $12.3M property — $120,000. Compare that to a $15M home in Palm Beach, FL paying $150,000–$250,000+ in property taxes with no cap. I help clients model these savings when comparing Bahamas vs. US ownership costs.

Want a property tax projection? Glenn calculates annual tax for any property based on assessed value and usage classification.

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Total Acquisition Cost

Complete Closing Costs — What You Actually Pay

Total buyer-side closing costs are approximately 7–8% of the purchase price. This includes your share of VAT (~5%), legal fees (2–2.5% + VAT), and smaller charges. The seller separately pays the agent commission (6% improved / 10% land + VAT). No hidden fees — Glenn provides a line-by-line estimate before you make an offer.

Cost Item	Rate / Range	Who Pays	Example on $1M Purchase
VAT on Conveyance	10% total (foreign buyer)	Split 50/50	$50,000 buyer share
Legal Fees (Attorney)	2–2.5% of price	Buyer	$20,000–$25,000
VAT on Legal Fees	10% of legal fees	Buyer	$2,000–$2,500
Property Appraisal	$1,500–$5,000	Buyer	$3,000
Title Insurance (optional)	0.5–1%	Buyer	$5,000–$10,000
Boundary Survey	$2,000–$10,000	Buyer	$3,000
Building Inspection	$800–$2,500	Buyer	$1,500
Registration Fees	Small fixed fee	Buyer	$200–$500
Total Buyer Costs	~7–8%	Buyer	~$80,000–$85,000
Seller pays separately: Agent commission (6% + VAT = $66,000 on $1M) + seller’s VAT share ($50,000) + seller’s legal fees

Do not budget only for VAT. Many first-time Bahamas buyers budget 5% for their VAT share and forget legal fees, appraisals, and inspections. The true total is 7–8%. Glenn’s closing cost estimates include every line item so there are no surprises at closing.

International Buyers

Tax Rules Specific to Foreign Buyers

Foreigners can buy freehold property in the Bahamas with identical ownership rights to Bahamian citizens. No nationality restrictions. No leasehold-only rules. Residential property up to five acres requires no government approval — just register with the Bahamas Investment Authority after closing.

The key tax differences for foreign buyers are: flat 10% VAT on conveyance (no graduated rates), 2% property tax on vacant land (Bahamians exempt), and no access to first-time buyer exemptions. However, all other rates — annual property tax on developed property, professional service VAT, and the zero income/capital gains/inheritance taxes — are identical regardless of nationality.

Properties over five contiguous acres, or undeveloped land for commercial development, require an International Persons Landholding Permit from the Bahamas Investment Authority before closing. Permits are routinely granted for legitimate purchases. See the Foreign Buyer’s Guide.

Glenn’s Insider TipDo not contact multiple agents for the same property. In the Bahamas, the first agent to show a property earns the co-broke commission. If you’ve already seen a listing with another agent, Glenn cannot represent you on that property. Choose one agent early and let them search the full MLS on your behalf.

Foreign buyer? Glenn handles the full process: search, offer, VAT negotiation, attorney coordination, Investment Authority registration, and residency filing.

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Cost of Ownership

Annual Costs Beyond Property Tax

Beyond the purchase price and annual property tax, budget for hurricane insurance, basic property insurance, electricity, water, and HOA fees (if applicable). Nassau’s zero income tax and zero capital gains tax offset these costs significantly compared to the US, Canada, or Europe.

Annual Cost	Typical Range	Notes
Property Tax	0–1.5% of assessed value	Owner-occupied under $300K exempt; tiered above
Hurricane Insurance	1.5–3% of insured value	Covers wind/flood; many self-insure above deductible
Basic Property Insurance	0.5–1% of insured value	Fire, theft, flood (non-hurricane), liability
Electricity (BPL)	$250–$500/month	Rates ~$0.28–$0.36/kWh; higher with heavy A/C
Water (WSC)	$30–$60/month	Government supply; some properties use cisterns
HOA / Strata Fees	$400–$2,500+/month	Condos only; covers building insurance, amenities
Property Management	20–30% of rental income	If renting; guest management, cleaning, bookings
Income Tax on Rentals	None — 0%	Rental income not taxed in the Bahamas
Capital Gains Tax on Sale	None — 0%	Profits from sale not taxed locally

Want a full cost-of-ownership projection? Glenn models annual costs for any property: tax, insurance, HOA, utilities, and net rental income.

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Residency + Tax

Residency Through Real Estate — Tax Benefits

Bahamas property ownership unlocks residency pathways with significant tax advantages. $250K+ qualifies for a Home Owner’s Residence Card. $1,000,000+ qualifies for Economic Permanent Residency (EPR) — updated January 2025 from the previous $750K threshold. EPR means zero income tax on worldwide income while residing in the Bahamas.

Investment Level	Residency Type	Key Benefits	Processing
$250,000+	Home Owner’s Residence Card	Facilitates entry for up to 1 year; $250/year fee	8–12 weeks
$1,000,000+	Economic Permanent Residency (EPR)	Lifetime residency; zero income tax; 90 days/year residence	6–18 months
$1,500,000+	EPR — Accelerated	Same as EPR with priority processing	21 days (guaranteed response)

EPR holders enjoy zero income tax, zero capital gains tax, and freedom to enter/exit The Bahamas without annual renewal. EPR requires maintaining the property for a minimum of 10 years. EPR does not grant work rights — a separate work permit is required. The government fee is $20,000 plus $300 per endorsed family member. For full details, see the Residency by Investment Guide.

Considering residency? Glenn coordinates property search, purchase, and EPR application as one seamless process.

Residency Guide Discuss with Glenn

Legislative Update

July 2025 Tax Law Changes — What’s New

On July 1, 2025, The Bahamas enacted several legislative amendments affecting real estate transactions. These changes increase compliance requirements and reporting obligations but do not change VAT rates or property tax rates. All changes are part of the 2025–2026 National Budget.

1. VAT Invoice Required Before Closing

Parties to real estate transactions must now obtain a VAT invoice from the Department of Inland Revenue (DIR) before executing the conveyance. This is a provisional invoice — the final amount may change after the executed instrument is submitted for stamping. Your Bahamian attorney handles this as part of the closing process.

2. Beneficial Interest Declaration Required

Property owners must file a declaration with the DIR within 30 days of conveying a beneficial interest in their real property. This applies whether the interest is conveyed directly or indirectly. The transferor and any real estate agents are jointly and severally liable for a 3% penalty of the consideration if the declaration is not filed on time.

3. VAT Credit Restrictions for Construction

VAT registrants can no longer claim VAT credits on goods/services acquired for major construction activity unless the registrant is a real estate developer or other qualifying business. This affects individuals building custom homes who were previously claiming VAT input credits.

4. VAT Rate Changes (Non-Real-Estate)

Unprepared food/groceries reduced to 5% VAT (effective April 2025). Sweets, chewing gum, and sodas returned to 10% standard rate (effective September 2025). No change to the 10% standard VAT rate on professional services.

Glenn’s Insider TipThese changes make choosing the right attorney more important than ever. The new 30-day filing requirement and 3% penalty for non-compliance mean your attorney must be experienced with current regulations. I refer attorneys who are up to date on all 2025 changes and handle foreign buyer transactions regularly.

How the Bahamas Compares

Bahamas vs. Florida vs. Cayman — Tax Comparison

The Bahamas is one of the most tax-efficient real estate jurisdictions in the Americas. Zero income tax, zero capital gains, property tax capped at $120K, and a 1:1 USD peg. Here’s how it compares to key alternatives for international buyers.

Tax / Cost	Bahamas	Florida, USA	Cayman Islands
Income Tax	0%	0% state / up to 37% federal	0%
Capital Gains Tax	0%	Up to 23.8% federal + 3.8% NIIT	0%
Property Tax ($2M home)	~$16,250/year (owner-occ.)	~$20,000–$40,000/year	0%
Transfer Tax	10% VAT (split)	~2% (documentary stamps + title)	7.5% stamp duty
Inheritance Tax	0%	Up to 40% federal estate tax	0%
Currency	BSD (1:1 USD peg)	USD	KYD (1.20 USD)
Residency Path	$1M+ for EPR	Green Card (complex)	$2.4M+ for residency

Glenn’s Insider TipThe Bahamas’ transfer tax is higher than Florida’s, but total long-term cost is far lower. The 10% VAT is a one-time cost at purchase. Florida’s ongoing income tax (federal), higher property taxes (no cap), and estate tax exposure add up to significantly more over a 10-year hold. I model 10-year total cost of ownership for clients comparing jurisdictions.

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Your Tax & Transaction Guide

Why Work with Glenn Ferguson?

I have guided hundreds of foreign buyers through Bahamas real estate transactions over 24 years. I know every VAT rate, every property tax tier, every closing cost line item, and every attorney who handles foreign buyer conveyances.

I do not just search MLS. I provide line-by-line closing cost estimates before you make an offer, negotiate the VAT split with the seller, coordinate your attorney, file your Investment Authority registration, and submit your residency application — all as one process.

My service costs you nothing as a buyer. The seller pays the agent commission.

BREA Licensed MLS Member Residency Consultant 24+ Years

Glenn Ferguson — Licensed Bahamas Real Estate Agent

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Nassau & All Islands

Frequently Asked Questions

Bahamas Real Estate Taxes — Your Questions Answered

What taxes do you pay on Bahamas real estate?

Three taxes: (1) VAT on conveyance — 10% for foreign buyers over $100K, graduated 2.5%–10% for Bahamians, typically split 50/50. (2) Annual property tax — owner-occupied: under $300K exempt, 0.625%–1% above, capped $120K/year. Non-owner: 0.75%–1.5%. (3) VAT on services — 10% on legal fees, appraisals, commissions. Zero income tax, capital gains, inheritance tax.

How much is VAT for foreign buyers?

Flat 10% on purchases over $100,000 (2.5% under $100K). Typically split 50/50 with seller, so buyer’s effective cost is ~5%. The split is negotiable — Glenn regularly negotiates seller-heavy splits on luxury properties. Companies and IBCs also pay flat 10%.

Is there income tax in the Bahamas?

No. Zero personal income tax. Zero corporate income tax (except 15% QDMTT for multinationals over €750M revenue). Rental income is tax-free. Dividends and interest are tax-free. Your home country taxes may still apply — US citizens report worldwide income to the IRS regardless.

Is there capital gains tax on Bahamas property?

No. Sell at any profit, keep 100% locally. No holding period, no reporting, no exceptions. US citizens: report gains to IRS. Canadians: 50% of gains taxable. UK residents: CGT applies on worldwide gains. The Bahamas eliminates the local layer.

How is property tax calculated on a $1 million home?

Owner-occupied $1M: First $300K exempt ($0) + next $200K at 0.625% ($1,250) + remaining $500K at 1% ($5,000) = $6,250/year. Non-owner-occupied $1M: First $500K at 0.75% ($3,750) + next $500K at 1% ($5,000) = $8,750/year. Owner-occupied classification saves $2,500/year.

What are total closing costs for buyers?

Approximately 7–8% of purchase price. VAT buyer share ~5% (half of 10%), legal fees 2–2.5% plus 10% VAT on fees, appraisal $1,500–$5,000, optional title insurance 0.5–1%. Seller separately pays agent commission (6% + VAT). Glenn provides line-by-line estimates before you make an offer.

Do foreigners pay more tax than Bahamians?

On the transfer tax (VAT): yes — flat 10% versus graduated 2.5%–10%. On annual property tax: no — same rates based on property use, not nationality. On vacant land: yes — foreigners pay 2% above $7K; Bahamians exempt. All zero-tax benefits (income, capital gains, inheritance) apply equally.

What is the $120,000 property tax cap?

Owner-occupied properties are capped at $120,000 per year in property tax regardless of value. This kicks in at approximately $12.3M assessed value. Ultra-luxury homes in Lyford Cay, Albany, and Ocean Club Estates benefit enormously — a $20M estate pays the same $120K as a $12.3M property.

Is Bahamas rental income taxed?

No — rental income is completely tax-free locally. Short-term Airbnb, vacation rentals, and long-term leases all untaxed. However, rental properties are classified as non-owner-occupied for property tax (higher rates). US/Canadian/UK citizens must report rental income in their home countries.

What changed in Bahamas tax law in July 2025?

Key changes: VAT invoice required from DIR before closing (was optional). 30-day declaration required when conveying beneficial interest — 3% penalty if late. Attorneys and agents jointly liable. VAT credits restricted for non-developer construction. No change to VAT rates or property tax rates. See the July 2025 Updates section.

How do I get the 10% early payment discount on property tax?

Pay your annual real property tax by March 31 for a 10% discount. Bills are mailed in December for the following year. Pay at the Department of Inland Revenue (Carmichael Road) or any Royal Bank of Canada branch using your property assessment number. The DIR also has an online portal.

Can I get residency through real estate investment?

Yes. $250K+ qualifies for Home Owner’s Residence Card ($250/year). $1,000,000+ qualifies for Economic Permanent Residency — updated January 2025 from $750K. $1.5M+ receives accelerated processing. EPR requires 10-year hold and 90 days/year residence intention. See the Residency Guide.

Are there property taxes on Freeport, Grand Bahama?

No. Properties within the Freeport Licensee Area are exempt from real property tax under the Hawksbill Creek Agreement. VAT on conveyance still applies when purchasing. This makes Freeport uniquely attractive for buyers seeking zero annual property tax.

How does Bahamas compare to Florida for taxes?

On a $2M owner-occupied home: Bahamas ~$16,250/year property tax + zero income/capital gains. Florida ~$20,000–$40,000/year property tax + up to 37% federal income tax + 23.8% federal capital gains + 40% estate tax. Over 10 years, a high earner saves $500K–$2M+ in the Bahamas versus Florida.

What is the agent commission in the Bahamas?

Seller pays: 6% on improved property (homes, condos), 10% on vacant land, plus 10% VAT on commission. Buyer’s agent is paid from this — so buyer agent service is free to you. Glenn is BREA licensed and provides full MLS access, negotiation, and closing coordination at no cost to buyers.

Do I need a Bahamian attorney?

Yes — required by law. Only licensed Bahamian attorneys can convey real property. Budget 2–2.5% of purchase price + 10% VAT on fees. Your attorney conducts title search, holds escrow, prepares closing documents, and issues the Opinion on Title. Glenn refers attorneys experienced with foreign buyer transactions.

Can I use an IBC to buy Bahamas property?

Yes, but trade-offs exist. IBCs pay flat 10% VAT (no graduated savings even for Bahamians), cannot qualify for owner-occupied tax rates, and have annual maintenance costs ($1,000–$2,000). Benefits: enhanced privacy, simplified estate succession, and asset protection. Best for investors who prioritize privacy over tax optimization.

How often is property reassessed?

Generally every 5–10 years for routine assessments by the Chief Valuation Officer. Significant renovations, additions, or market changes may trigger earlier reassessment. As of July 2025, the DIR may also challenge transaction prices that are “not in line” with their property valuations.

Is there a VAT on buying land vs. buying a home?

Same VAT rates apply to both land and improved property. The difference is in agent commission: 10% on vacant land versus 6% on improved property (both paid by seller). Annual property tax also differs — Bahamians pay zero on vacant land, while non-Bahamians pay 2% above $7K value.

Who to call about Bahamas real estate taxes?

Call Glenn Ferguson at 1-242-395-8495 (also WhatsApp). BREA Licensed, MLS Member, Residency Consultant with 24+ years. Glenn provides free closing cost estimates, annual tax projections, and full transaction coordination. Seller pays commission. Learn more at the About Glenn page.

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