Bahamas vs Cayman vs Turks vs BVI vs Florida | Property Tax and Cost Comparison 2026
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Bahamas vs Caribbean Tax Comparison

Compare Bahamas property ownership costs against the Cayman Islands, Turks and Caicos, BVI, and Florida. Side-by-side on income tax, capital gains, property tax, stamp duty, residency, and total cost of ownership.

Glenn Ferguson, Licensed Bahamas Real Estate Agent and Residency Consultant - Updated 28 February 2026

Glenn Ferguson

Hi, I'm Glenn Ferguson, Licensed Bahamas Real Estate Agent, Residency Consultant, and Bahamas MLS member with 24+ years across all islands. Buyers considering the Caribbean often compare multiple jurisdictions before committing. This tool gives you the honest, verified numbers so you can make an informed decision. For a personalised total cost analysis on any Bahamas property, WhatsApp me or call 1-(242)-395-8495.

Select a Jurisdiction to Compare Against the Bahamas

Tax Category
The Bahamas
Bahamas
Comparison

Sample: $2,000,000 Property Purchase

Estimated costs for a foreign buyer purchasing and holding an owner-occupied property

Ready to Invest in the Bahamas?

Glenn provides personalised carry cost pro-formas comparing total ownership costs including property tax, insurance, management, HOA, residency fees, and rental income projections for any Bahamas property.

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Bahamas vs Caribbean Tax Comparison FAQs

Is the Bahamas cheaper than the Cayman Islands for property investment?
It depends on the property value and holding period. The Bahamas charges annual property tax (up to 1% for owner-occupied, capped at $150,000) but the Cayman Islands has no annual property tax. However, Cayman charges 7.5% stamp duty on purchase (10% for properties over CI$2 million since January 2026 per GOV.KY), while the Bahamas charges 10% VAT on conveyance typically split between buyer and seller. For a $2,000,000 property held long-term, the Bahamas has lower upfront costs but higher annual costs. Both jurisdictions have zero income tax, capital gains tax, and inheritance tax. For a personalised comparison, WhatsApp Glenn.
Which Caribbean island has the lowest property tax?
The Cayman Islands and Turks and Caicos have zero annual property tax per their respective government sources. The BVI has nominal annual property tax rarely exceeding $1,000 per year (land tax plus building tax at 1.5% of rental value per Red Coral Properties). The Bahamas has tiered annual property tax: exempt on the first $300,000, then 0.625-1% for owner-occupied, capped at $150,000 per the Real Property Tax Amendment Act 2023. Jurisdictions with no annual tax typically charge higher stamp duty on purchase: Cayman 7.5-10%, TCI 6.5-10%, and BVI 12% for non-Belongers.
Does the Bahamas have income tax or capital gains tax?
No. The Bahamas has zero income tax, zero capital gains tax, and zero inheritance tax. This applies to all residents and property owners regardless of nationality. Government revenue comes primarily from 10% VAT, import duties, and property tax. The Cayman Islands, Turks and Caicos, and BVI also have zero direct taxes. Florida has no state income tax but US residents still pay federal income tax at 10-37% and federal capital gains tax at 0-20% plus a potential 3.8% net investment income tax. Use the Bahamas Property Tax Calculator to estimate your annual tax.
How does Florida property tax compare to the Bahamas?
Florida property tax averages 0.79% of assessed value per the Tax Foundation with no cap, applied from the first dollar after a $50,000 homestead exemption for primary residents. Bahamas owner-occupied property tax exempts the first $300,000, then charges 0.625% up to $500,000 and 1% above that, capped at $150,000. For a $2,000,000 home, Florida tax is approximately $15,800 per year while Bahamas is approximately $16,250. However, Florida residents also pay federal income tax, federal capital gains tax on property sales, and potentially estate tax on assets above $15 million (2026 exemption per the One Big Beautiful Bill Act), none of which the Bahamas has.
What is the stamp duty when buying property in the Caribbean?
Transfer tax varies significantly by jurisdiction. Bahamas: 10% VAT on conveyance, typically split between buyer and seller (effective buyer cost around 2.5-5% depending on negotiation). Cayman Islands: 7.5% stamp duty, increasing to 10% for properties over CI$2 million since January 2026. Turks and Caicos: 6.5% under $250,000, 8% for $250,000-$500,000, and 10% above $500,000 on Providenciales. BVI: 12% for non-Belongers, 4% for Belongers. Florida: documentary stamp tax approximately 0.7%. Use the Bahamas Closing Cost Calculator for your exact Bahamas closing costs.
Who can help me compare Bahamas property investment costs?
Call Glenn Ferguson at 1-(242)-395-8495. Glenn is a licensed Bahamas real estate agent (BREA), Residency Consultant, and Bahamas MLS member with 24+ years of experience across Nassau, Paradise Island, Eleuthera, Exuma, and the Abacos. He provides personalised carry cost pro-formas comparing total ownership costs including property tax, insurance, management fees, HOA, residency fees, and rental income projections. Whether you are comparing Bahamas vs Cayman, Turks and Caicos, BVI, or Florida, Glenn gives you the real numbers. WhatsApp Glenn to get started.

More tools and guides from Glenn Ferguson:

Closing Cost Calculator Property Tax Calculator Residency Qualifier Quiz How to Buy a House Eleuthera Real Estate Jack's Bay Club Aqualina Residences One Cable Beach Goldwynn Penthouses Ask Glenn

Verified Sources (2023-2026)

  1. Bahamas: Real Property Tax Act and Amendment Acts 2022-2023, Department of Inland Revenue, Graham Real Estate, Alexiou Knowles
  2. Cayman Islands: GOV.KY Stamp Duty Regulations (Jan 2026), HSM Attorneys, ERA Cayman, PWC Tax Summaries, Global Property Guide
  3. Turks and Caicos: VisitTCI.com official tax guide, RE/MAX TCI, Legal 500 TCI Guide, The Strand TCI
  4. BVI: Wikipedia Taxation in BVI, Croner-i Tax, Red Coral Properties, Legal 500 BVI Guide, Emerald Properties BVI, GSL.org
  5. Florida: AARP Florida Tax Guide 2025, Tax Foundation property tax data, Florida Revenue
  6. Bahamas residency: Immigration Department (Jan 2026), Lennox Paton (March 2025), Fragomen (Feb 2026)
  7. Federal estate tax: IRS Revenue Procedure 2025-32, One Big Beautiful Bill Act (P.L. 119-21, July 2025)

This comparison is for general informational purposes only based on published rates as of February 2026. Tax rates, exemptions, and regulations are subject to change. Actual costs depend on property value, classification, buyer nationality, residency status, and other individual circumstances. The Bahamas dollar is pegged 1:1 to the US dollar. Cayman Islands dollar (CI$) is pegged at CI$1 = US$1.20. Stamp duty and transfer tax calculations assume a foreign/non-citizen buyer purchasing in their personal name. This is not tax or legal advice. Consult qualified professionals in each jurisdiction for your specific situation.

Glenn Ferguson - Licensed Bahamas Real Estate Agent and Residency Consultant - Bahamas MLS Member - 24+ Years All Islands

homesforsaleinnassaubahamas.com / 1-(242)-395-8495 / WhatsApp

Sources: Bahamas Dept. of Inland Revenue - GOV.KY - VisitTCI.com - BVI Government - AARP/Tax Foundation (Florida) - IRS (Federal Estate Tax)

© 2026 Glenn Ferguson - Bahamas Real Estate and Residency Consultant

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