Bahamas Real Estate: Your Complete Guide to Buying, Selling, and Investing in Paradise

 

The Bahamas isn’t just a destination—it’s a lifestyle. Whether you’re drawn by the turquoise waters, sandy beaches, or the opportunity to invest in one of the world’s most desirable markets, Bahamas real estate offers endless possibilities.

Hi, I’m Glenn Ferguson, a Luxury Bahamas Real Estate Agent with over 20 years of experience helping buyers, sellers, and investors navigate the local market. This guide provides everything you need to know about real estate in the Bahamas, from understanding the benefits of ownership to the step-by-step process of buying or selling property.

Let’s explore how you can make owning a home in paradise a reality.


Why Invest in Bahamas Real Estate?

1. Tax Benefits

The Bahamas is well-known for its attractive tax environment, including:

  • No income tax
  • No inheritance tax
  • No capital gains tax

These tax advantages make the Bahamas a great choice for investors, retirees, and anyone looking to optimise their financial future.


2. Quality of Life

Living in the Bahamas means enjoying ocean breezes, fresh seafood, and outdoor activities like snorkeling, boating, and golf. The islands’ friendly communities and sunny climate create the perfect setting for relaxation and adventure.


3. Strong Investment Potential

The demand for vacation homes and rental properties is high, driven by year-round tourism. Property owners often enjoy steady rental income and long-term appreciation.


Top Locations for Bahamas Real Estate

Each island has its own charm and unique real estate opportunities. Here are some of the most sought-after locations:

1. Nassau & Paradise Island

  • Overview: The bustling capital and its luxury-focused neighbour, Paradise Island, are the heart of the Bahamas.
  • Properties: Upscale condos, gated communities, and oceanfront estates.
  • Why Choose It: Proximity to airports, shopping, and a vibrant lifestyle make Nassau and Paradise Island a top choice for buyers.

2. Exuma

  • Overview: Known for its breathtaking Exuma Cays, this area is a haven for those seeking privacy and natural beauty.
  • Properties: Private islands, exclusive villas, and waterfront estates.
  • Why Choose It: Exuma’s crystal-clear waters and secluded settings attract those who value peace and luxury.

3. Eleuthera

  • Overview: Famous for its pink sand beaches and laid-back vibe, Eleuthera is a peaceful escape.
  • Properties: Secluded estates, charming cottages, and beachfront properties.
  • Why Choose It: Ideal for buyers seeking a tranquil lifestyle and privacy.

4. Abaco

  • Overview: A family-friendly destination and a boating enthusiast’s paradise.
  • Properties: Waterfront homes, marinas, and private cays.
  • Why Choose It: Abaco’s community feel and relaxed pace make it a great option for families and retirees.

Types of Properties in the Bahamas

1. Luxury Villas and Estates

  • High-end properties offering privacy, spacious designs, and stunning views for discerning buyers.

2. Beachfront Homes

  • Direct access to the ocean with breathtaking views, perfect for vacation homes or rental income.

3. Condos and Townhouses

  • Convenient and affordable options for first-time buyers or those seeking a low-maintenance lifestyle.

4. Private Islands

  • Exclusive properties for those looking for unparalleled privacy and luxury.

Step-by-Step Guide to Buying Property in the Bahamas

1. Find a Realtor

  • Working with an experienced agent like me ensures you’ll have access to the best properties and expert guidance throughout the process.

2. Search for Properties

  • Browse the Bahamas MLS to explore properties that meet your criteria.

3. Make an Offer

  • Once you’ve found the right property, (your realtor) I will help you negotiate the price and terms

4. Conduct Due Diligence

  • Hire a lawyer to verify the title, review property documents, and confirm there are no outstanding issues.

5. Close the Deal

  • Sign the purchase agreement, pay required fees, and become a Bahamas property owner.

Selling Real Estate in the Bahamas

1. Preparing Your Property

  • Declutter, clean, and stage your home to make it more appealing.
  • Highlight unique features like ocean views or modern upgrades.

2. Listing Your Property

  • Use platforms like the Bahamas MLS to reach potential buyers.

3. Working With an Agent

  • A skilled realtor will market your property effectively and connect you with serious buyers.

Legal and Financial Considerations

Stamp Duty

  • This transfer tax typically ranges from 5%-10% of the property’s value.

Legal Fees

  • Plan for 2%-3% of the purchase price to cover legal services like title searches and contracts.

Financing Options

  • Both local and international buyers can secure mortgages through Bahamian banks.

FAQs About Bahamas Real Estate

 

Buying a luxury home in the Bahamas is a major investment, and it’s natural to have questions. Whether you’re purchasing for the first time, exploring investment opportunities, or looking for a second home in paradise, understanding the process and unique aspects of the Bahamian market is key. 

To help, I’ve answered some of the most common questions about luxury real estate in the Bahamas. From foreign ownership rules to tax advantages and property features, this section is here to guide you in making confident decisions about your future home. Let’s get started!


1. Can foreigners buy property in the Bahamas?

  • Yes, absolutely! The Bahamas is one of the few countries where foreign buyers have the same property ownership rights as citizens.
  • The only requirement by Bahamian law is that you use a Bahamas realtor for your purchase.
  • There are no restrictions on purchasing most types of property, making it an excellent choice for international buyers.

2. Are there residency benefits for owning property?

Yes. Property ownership in the Bahamas can help you qualify for residency:

  • Permanent Residency: Available for property purchases valued at $750,000 or more.
  • Accelerated Residency Application: For properties worth $1.5 million or more.
    This is especially attractive for individuals looking for a second home or a tax-friendly place to reside.

3. What taxes and fees are involved in buying property?

When purchasing real estate in the Bahamas, buyers should plan for the following costs:

  • Stamp Duty: 5%-10% of the property value, split between the buyer and seller unless otherwise agreed.
  • Legal Fees: Typically 2%-3% of the property price.
  • Appraisal Fees: Fees for professional property valuation.
  • Real Estate Commission: Usually 6% for residential properties.

4. Can I finance a property purchase in the Bahamas?

Yes, both local and international buyers can secure mortgages through Bahamian banks or private lenders.

Financing options typically require:

  • A deposit of 20%-30% of the property value.
  • Proof of income or financial stability.
  • Appraisals and legal documentation to finalise the loan.

5. Are MLS listings reliable for finding properties?

  • The Bahamas Multiple Listing Service (MLS) is the most reliable resource for property listings.
  • Managed by the Bahamas Real Estate Association (BREA), it provides verified, up-to-date information.
  • Whether you’re looking for a luxury home, a beachfront property, or an investment, the MLS offers a wide selection of options.

6. What are the best islands for real estate investments?

Each island offers unique opportunities:

  • Nassau & Paradise Island: Perfect for luxury living and urban amenities.
  • Exuma: Ideal for private islands and upscale retreats.
  • Eleuthera: Known for affordable beachfront properties and tranquil living.
  • Abaco: A favourite for families and boating enthusiasts.

7. How long does it take to close on a property?

  • On average, the closing process in the Bahamas takes 30-90 days. Factors like due diligence, financing, and legal documentation can impact the timeline.
  • Having an experienced agent and lawyer ensures a smoother process.

8. Are vacation rentals allowed on Bahamian properties?

  • Yes, vacation rentals are allowed in most residential areas and can provide excellent returns.
  • Platforms like Airbnb and VRBO are popular, especially for beachfront properties or homes near major tourist attractions.
  • Always check local zoning laws for specific restrictions.

9. What should I consider before buying a private island?

Buying a private island is a unique investment. Key considerations include:

  • Accessibility: Distance from airports or transport hubs.
  • Utilities: Availability of water, electricity, and internet.
  • Maintenance: Costs for upkeep, staffing, and infrastructure.
  • Zoning and Regulations: Check if development is permitted.

10. Can I purchase property as part of a retirement plan?

  • Yes, many buyers see Bahamas real estate as an ideal part of their retirement strategy.
  • The country’s favourable tax laws, coupled with its relaxed lifestyle and quality healthcare options, make it an excellent place for retirees.

11. What should I look for in a Bahamas real estate agent?

When choosing a real estate agent, ensure they are:

  • Licensed by BREA: This guarantees professionalism and adherence to local laws.
  • Experienced in Local Markets: Understanding the nuances of different islands is critical.
  • Connected: Access to exclusive listings and a strong network of attorneys, lenders, and appraisers is invaluable.
  • Just look for Me...

12. How do I know if a property is hurricane-ready?

Given the Bahamas’ location, hurricane preparedness is essential. Look for:

  • Hurricane-impact windows and doors.
  • Reinforced roofing and structures.
  • Flood-resistant construction.
  • Elevated properties to mitigate flood risks.

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