Buy a House in the Bahamas

Prices range from under $200,000 for modest local homes to $68 million for private island estates. Closing costs for foreign buyers total 7–12% of purchase price: 5% VAT (buyer's share), 3.5–5% attorney fees, and minor registration fees. The buyer pays zero agent commission. Glenn provides a line-by-line cost breakdown for every property before you commit.

Yes. Both buyer and seller must be represented by separate Bahamian attorneys. Your attorney handles the title search, due diligence, conveyance drafting, Central Bank application (foreign buyers), VAT payment, and Investments Board registration. Minimum recommended attorney fees effective January 1, 2026: 3.5% for registered land, 5% for unregistered land (Bahamas Bar Association memorandum, December 2025, increased from the previous 2.5%).

Typical closings take 90–180 days from signed agreement to completed conveyance. Cash transactions with clean title can close in 60–90 days. The main timeline drivers are the title search (2–4 weeks), Central Bank approval for foreign buyers (2–4 weeks), and conveyance recording.

No. The Bahamas has zero income tax, zero capital gains tax, zero inheritance tax, and zero wealth tax. Property tax is the only recurring obligation: first $300,000 exempt (owner-occupied), 0.625% on $300K–$500K, 1% above $500K, capped at $120,000/year. Rental income is not subject to local income tax. U.S. citizens remain subject to U.S. tax obligations regardless.

Yes. Any property owner qualifies for a Homeowner's Resident Card ($500/year). Purchases of $1,000,000+ qualify for Economic Permanent Residency (EPR) — a lifetime permit covering spouse and dependents. The property must be held for 10 years minimum. See Bahamas Residency Through Real Estate.

Yes. The Bahamas has a transparent, well-regulated property market governed by English common law. Your attorney conducts a title search through the Registry of Records (30+ years of history) and issues a formal Opinion on Title backed by professional indemnity insurance. The Bahamian dollar is pegged 1:1 to the U.S. dollar. Modern luxury developments are built to Category 5 hurricane standards with reinforced concrete and impact-resistant materials.

Hurricane insurance is essential and typically costs 1–2% of replacement value per year. Modern Bahamas homes — particularly in gated communities like Albany, Old Fort Bay, and Bakers Bay — are built to Category 5 standards with reinforced concrete, impact-rated windows, and backup power systems. Nassau (New Providence) has not taken a direct hit from a major hurricane in decades. Glenn provides insurance cost estimates for every property.

Yes. Bahamas rental income is not subject to local income tax, making the market attractive for investment buyers. Short-term rentals (under 45 days) are subject to 10% VAT and require a business licence ($250–$1,250/year). Long-term rentals (45+ days) are VAT-exempt. Luxury properties in Nassau typically generate gross rental yields of 6–12%. Glenn helps structure rental arrangements for maximum return. See Maximising Rental Income from Bahamas Real Estate.

Key facts for 2026: (1) Foreigners get freehold ownership — same as citizens. (2) Zero income, capital gains, and inheritance tax. (3) Buyer pays zero agent commission. (4) Closing costs: 7–12%. (5) Property under 5 acres needs no government approval. (6) EPR residency requires $1M+ investment. (7) Hurricane insurance: 1–2% of replacement value/year. (8) Attorney fees increased to 3.5%/5% minimum effective Jan 2026. (9) BSD pegged 1:1 to USD. (10) Always use a BREA-licensed agent and a qualified Bahamian attorney. Read the full checklist: 7 Things You Must Know Before Buying.