Do foreigners pay property tax in the Bahamas?

Yes. Both Bahamians and non-Bahamians pay property tax based on the property type and assessed value. Foreign buyers are fully eligible to own property but are subject to standard property tax rules.

Is there capital gains tax on real estate in the Bahamas?

No. The Bahamas does not levy capital gains tax on real estate transactions, which is one of the reasons it is attractive for international investors and high-net-worth individuals.

How can I estimate my total tax cost on a Bahamas property?

You can estimate your tax costs by combining the annual property tax with applicable VAT and conveyance fees at purchase. Use the Bahamas Property Tax Calculator on HomesForSaleInNassauBahamas.com and request a custom tax illustration from Glenn Ferguson based on the price range and location you are targeting.

Bahamas Real Estate Taxes 2026: Complete Guide for Buyers, Owners & Investors

Q: Are there property taxes in the Bahamas?

Yes, there are property taxes in the Bahamas, with different bands and exemptions depending on the value and use of the property. For a detailed breakdown, see the resource 'Are There Property Taxes in the Bahamas?' on HomesForSaleInNassauBahamas.com.

Thinking about buying or owning Bahamas real estate? Here’s how property tax, VAT on conveyances, and residency incentives work in 2026 — explained clearly so you can plan with confidence.

Last updated for the 2026 tax year • Written by Bahamas Real Estate Agents & Residency Consultant Glenn S. Ferguson

► Use the Bahamas Property Tax Calculator Ask Glenn Your Tax & Buying Question

By Glenn Ferguson — Bahamas Real Estate Agent, Residency Consultant & Luxury Property Advisor

As someone who’s helped buyers from the US, Canada, the UK and around the world purchase beachfront homes in the Bahamas, I’m asked constantly: “How do Bahamas real estate taxes work in 2026?”

1. Quick Overview of Bahamas Real Estate Taxes in 2026

The Bahamas remains one of the strongest international property investment markets because it has:

No income tax
No capital gains tax
No inheritance or estate tax
A simple property tax structure with clear brackets
Predictable closing costs driven primarily by VAT

New to buying? Start with the Complete Guide to Buying Property in the Bahamas and the Bahamas Real Estate 2025 Complete Buying Guide.

2. Annual Bahamas Property Tax Bands & Rates

Rates vary by property use:

Owner-occupied homes
Investment & rental properties (including Airbnb rentals)
Commercial property
Vacant land

Owner-Occupied Homes

Ideal for buyers in prime communities like Ocean Club Estates & Albany.

To understand how your tax band might look, review Understanding Bahamas Property Taxes.

Investment & Rental Properties

Popular in Eleuthera, Exuma and Nassau.

Also see Maximizing Rental Income from Bahamas Real Estate.

For quick estimates, use the Bahamas Property Tax Calculator.

3. VAT & Conveyance Costs When You Buy

Closing costs in 2026 include:

VAT on the conveyance
Legal fees
Government recording fees

Buying at the luxury level? Get estimates for Goldwynn Penthouses, Four Seasons Ocean Club Residences or Aqualina Beachfront Condos.

4. How Taxes Connect to Residency & Tax-Free Living

Many high-net-worth buyers choose luxury Bahamas real estate to secure:

No income or capital gains tax
Permanent residency options tied to property ownership
Long-term wealth preservation

Review also:

5. Key Insights for Luxury & Investment Buyers

Nassau & Paradise Island — Luxury homes for sale and Paradise Island real estate insights
Eleuthera — Eleuthera Bahamas real estate and Airbnb investment villas
Exuma — Lifestyle estates & island properties
Boat Slips & Marinas — Bahamas boat slips for sale and Legendary Blue Water Cay Marina.

6. Top Questions About Bahamas Real Estate Taxes in 2026

Are there property taxes in the Bahamas?

Yes — see Are There Property Taxes in the Bahamas? for a full explanation of bands and exemptions.

Do foreigners pay property tax?

Yes, all owners pay based on use & value. Start here: Can a Foreigner Buy a House in the Bahamas?

Is there capital gains tax in the Bahamas?

No — the Bahamas does not levy capital gains tax on property sales, which is one reason it remains a global wealth haven.

How do I estimate my total tax cost on a specific property?

8. Get a Personalised Bahamas Tax & Buying Strategy

Whether you’re comparing Nassau’s top gated communities, emerging markets like Eleuthera, or lifestyle estates in Exuma, I’ll help you model taxes, cash flow, and residency alignment so you can make a confident decision.

► Ask Glenn About Your 2026 Tax Plan Browse Bahamas Property & Tax Resources