Can Foreigners Buy Property in the Bahamas?
Yes, foreigners can buy real estate in the Bahamas with full freehold ownership rights. There are specific requirements and restrictions that international investors must understand.
Glenn's Tip: "I help international buyers navigate these requirements. The key is understanding the regulations upfront and working with experienced local professionals who know the system inside and out."
Foreign Investment Requirements
Minimum Investment Thresholds:
- $500,000 minimum for most foreign real estate purchases
- No restrictions on property type (beachfront, inland, condos, houses)
- Full freehold title - same ownership rights as Bahamian citizens
Government Permit Required For:
- Properties over 2 acres in size
- Any property intended for rental income
- Commercial development projects
- Agricultural land purchases
No Permit Needed For:
- Single-family homes under 2 acres for personal use
- Properties meeting standard foreign investment criteria
Investment Requirements and Restrictions
2025 Foreign Investment Rules
The Bahamas welcomes international property investment but maintains specific guidelines to protect local interests:
What Foreign Investors Can Buy:
- Residential properties $500,000+
- Beachfront and waterfront real estate
- Condominiums and townhouses
- Vacant land for approved development
- Commercial real estate with permits
For specific examples of available properties, visit current Bahamas real estate listings.
Restrictions and Limitations:
- Properties under $500,000 (limited exceptions)
- Agricultural land without special permits
- Crown land and protected areas
- Properties in certain family island communities
Investment Categories
| Property Type | Min. Investment | Permit Required | Timeline |
|---|---|---|---|
| Personal Residence | $500,000 | Registration only | 30-45 days |
| Rental Property | $500,000 | Yes | 60-90 days |
| Commercial | Varies | Yes | 90-120 days |
| Large Development | $1M+ | Yes | 120+ days |
Bahamas Permanent Residency by Investment
Economic Permanent Residency (EPR) Program
New 2025 Requirements:
- $1,000,000 minimum investment (increased from $750,000)
- 10-year holding period mandatory
- 90 days annual residence requirement
Glenn's Note: "If you're considering this path, the new $1M threshold makes property selection more important. I can show you which properties qualify and how to structure your investment for maximum benefits."
Investment Options:
- Real Estate Investment: $1M+ in Bahamian property
- Government Bonds: $1M in zero-coupon bonds from Central Bank
Fast-Track Processing:
- $1.5M+ investments: 3-week expedited review
- Standard processing: 6-18 months
- Government fee: $20,000 + $300 per dependent
EPR Benefits
- Lifetime residency status
- No work permit required for business activities
- Family inclusion (spouse and dependents)
- Tax benefits access
- Path to citizenship after 10 years
Best Value Opportunities:
- Cat Island - Untouched natural beauty, lowest prices
- Long Island - Deep water access, fishing community
- Andros - Largest island, eco-tourism potential
Price Ranges by Island (2025)
| Location | Condos | Houses | Beachfront |
|---|---|---|---|
| Nassau/Paradise Island | $450K-$2M | $800K-$5M | $2M-$15M |
| Eleuthera | $300K-$800K | $500K-$1.5M | $800K-$3M |
| Exuma | $400K-$1M | $600K-$2M | $1M-$8M |
| Harbour Island | $600K-$1.5M | $1M-$3M | $1.5M-$10M |
Property Taxes and Costs in the Bahamas
Why the Bahamas Works Well for Property Investors
The Bahamas offers one of the world's most favorable tax environments:
Zero Taxes On:
- Personal income
- Capital gains
- Corporate profits
- Inheritance and estate
- Dividend income
Annual Property Tax Rates
Owner-Occupied Properties:
- First $300,000: Tax-free
- $300,001 - $500,000: 0.625% annually
- Over $500,000: 1% annually
Rental/Commercial Properties:
- First $500,000: 0.75%
- $500,001 - $2,000,000: 1%
- Over $2,000,000: 1.5%
VAT (Stamp Duty) on Property Purchases
| Property Value | VAT Rate |
|---|---|
| Under $100,000 | 2.5% |
| $100,001 - $300,000 | 4% |
| $300,001 - $500,000 | 6% |
| $500,001 - $700,000 | 8% |
| $700,001 - $1,000,000 | 9% |
| Over $1,000,000 | 10% |
Additional Closing Costs and Fees
| Cost Category | Rate/Amount | Who Pays | Notes |
|---|---|---|---|
| Legal Fees | 2.5% of purchase price | Each party pays own | Minimum Bar Association scale |
| Real Estate Commission | 6% (improved) / 10% (vacant) | Seller | Plus 12% VAT on commission |
| Recording Fees | $3.50 per page | Buyer | For conveyance documents |
| International Persons Permit | Varies | Buyer | If applicable |
| Mortgage Stamp Duty | 1% of loan amount | Borrower | If financing |
Important 2025 Changes:
- VAT on Real Estate Services: 12% VAT applies to all real estate services including appraisals, legal work, and commissions
- Homeowner's Card Threshold: Now available for properties $250,000+ (previously higher)
- EPR Investment Minimum: Increased to $1M from $750K in January 2025
Best Islands for Real Estate Investment
Top Investment Locations by Type
Best for Rental Income:
1. Nassau & Paradise Island
- Highest occupancy rates (70-80%)
- Premium nightly rates ($300-800+)
- International airport proximity
- Established tourism infrastructure
2. Harbour Island
- Luxury market positioning
- High-end vacation rentals
- Limited inventory drives values
Best for Capital Appreciation:
1. Eleuthera
- Growing luxury market
- Lower entry costs
- Growing infrastructure development
- 4-6% annual appreciation projected
2. Exuma
- Boating and yachting destination
- Celebrity and high-net-worth buyer interest
- Limited beachfront availability
Best Value for Money:
1. Cat Island
- Lowest property prices in archipelago
- Pristine beaches and diving
- Future tourism development potential
2. Long Island
- Deep water fishing paradise
- Affordable luxury properties
- Growing expat community
Explore more affordable options at cheap homes for sale in the Bahamas.
Rental Income and Vacation Properties
Short-Term Rental Market Performance
Average Annual Returns:
- Nassau/Paradise Island: 8-12% gross yield
- Eleuthera: 6-10% gross yield
- Exuma: 7-11% gross yield
- Harbour Island: 5-9% gross yield (higher property values)
Vacation Rental Requirements
Legal Requirements:
- Business license mandatory
- VAT registration if income >$100K annually
- Hotel licensing for properties in rental programs
- Government permit if purchased specifically for rental
Popular Rental Platforms:
- Airbnb and VRBO (highest volume)
- Luxury villa rental companies
- Local property management firms
- Direct booking websites
Rental Income Tax Benefits
Key Benefits:
- No income tax on rental profits in Bahamas
- No capital gains tax on property sales
- Business expense deductions available
- Depreciation allowances for commercial properties
Note: US citizens must still report worldwide income to IRS
Glenn's Example: "One of my clients purchased a $750K condo on Paradise Island in 2019. It now generates $95K annually in rental income - completely tax-free in the Bahamas. I helped structure the purchase and connect them with the right property management company."
For specific examples of rental properties and their income potential, see maximizing rental income from Bahamas real estate.
Financing Options for International Buyers
Mortgage Availability for Foreigners
Local Bank Requirements:
- 30-40% down payment minimum
- Debt-to-income ratio under 40%
- Credit verification from home country
- Income documentation required
- Interest rates: Prime + 2-4% (typically 8-12%)
Calculate your potential mortgage payments with our Bahamas mortgage calculator.
Major Lenders:
- FirstCaribbean International Bank
- Commonwealth Bank
- Fidelity Bank (Bahamas)
- RBC Royal Bank
Alternative Financing Options
| Financing Type | Down Payment | Terms | Interest Rate |
|---|---|---|---|
| Developer Financing | 10-20% | 5-7 years | 10-15% |
| Home Equity Loans | Varies | 10-30 years | 4-8% |
| Private Banking | 20-30% | Flexible | 5-10% |
| Asset-Based Lending | 25-40% | 1-10 years | 8-15% |
Legal Requirements and Process
Step-by-Step Property Purchase Process
Phase 1: Pre-Purchase (2-4 weeks)
- Define budget and investment goals
- Select qualified real estate agent
- Choose target islands and areas
- Secure financing pre-approval
- Engage Bahamian attorney
Phase 2: Due Diligence (3-6 weeks)
- Property inspection and valuation
- Title search and verification
- Survey and boundary confirmation
- Environmental assessments
- Permit requirement review
Phase 3: Legal Documentation (2-4 weeks)
- Purchase agreement drafting
- Government permit applications
- Deposit placement in escrow
- Mortgage documentation
- Insurance arrangements
Phase 4: Closing (1-2 weeks)
- Final walkthrough
- Title transfer preparation
- VAT payment and stamping
- Property registration
- Key handover
Required Documentation
Buyer Requirements:
- Valid passport
- Proof of funds/income
- Clean criminal background check
- Bank references
- Investment Board application (if applicable)
Property Documentation:
- Clear title certificate
- Survey plans
- Property tax certificates
- Building permits
- Environmental clearances
Glenn's Track Record: "I personally review every document before closing to make sure everything is in order. In 24+ years, none of my clients have ever had a title issue or closing problem. My network of trusted attorneys and surveyors means smooth transactions every time."
Living in the Bahamas as an Expat
Popular Expat Locations
Popular Expat Locations:
- Nassau: International community, amenities, schools
- Paradise Island: Luxury lifestyle, resort access
- Eleuthera: Quieter, natural beauty, growing expat base
- Harbour Island: Upscale, walkable, established community
Learn more about living in the Bahamas pros and cons or explore Paradise Island real estate options.
Cost of Living Comparison
| Category | Nassau | Family Islands | US Comparison |
|---|---|---|---|
| Groceries | High (+40-60%) | Very High (+60-80%) | Baseline |
| Utilities | Moderate (+20-30%) | High (+40-50%) | Baseline |
| Dining | High (+30-50%) | Moderate (+10-20%) | Baseline |
| Transportation | Moderate | Low | Baseline |
| Healthcare | High | Limited | Baseline |
Residency Options for Property Owners
| Residency Type | Cost | Benefits | Requirements |
|---|---|---|---|
| Annual Homeowner's Card | $500 annually | Easy entry/exit, 1-year stays | Property ownership only |
| Annual Residence Permit | $1,000 annually | Legal residency status | Financial independence proof |
| Economic Permanent Residency | $20,000 + $300 per dependent | Lifetime status, work rights | $1M+ investment |
Building and Construction for Foreign Buyers
Construction Permits and Requirements
Required Approvals:
- Town Planning Board approval - For all new construction
- Building permit - From Ministry of Works
- Environmental clearance - For coastal properties
- Utility connections - Water, electricity, and sewage
Professional Requirements
Mandatory Local Professionals:
- Licensed architect - Must sign all building plans
- Licensed engineer - Required for structural plans
- Local contractors - Familiar with local building codes
Foreign architects can design, but local licensing is required for plan submission
Construction Costs and Timeline
Typical Construction Costs (2025):
- Basic construction: $200-300 per sq ft
- Mid-range: $350-500 per sq ft
- Luxury/Custom: $600-1,200+ per sq ft
- Hurricane-rated construction: +20-30% premium
Timeline Factors:
- Permit approval: 3-6 months
- Material shipping: 4-8 weeks from US
- Weather delays: Hurricane season considerations
- Skilled labor availability - Often imported
VAT Refund for New Construction
Construction VAT Benefits:
- Vacant land purchase: If you build within 18 months, partial VAT refund available
- Owner-occupied homes: First-time Bahamian homebuyers get VAT reductions
- Construction materials: Some materials may qualify for duty exemptions
Property Management and Maintenance
Ongoing Property Costs
Annual Operating Expenses:
- Property insurance: 0.3-0.8% of property value
- Hurricane insurance: Additional 0.2-0.5%
- Property management: 8-15% of rental income
- Utilities: $200-800+ monthly (varies by island)
- HOA fees: $200-2,000+ monthly (if applicable)
Property Management Services
Full-Service Management Includes:
- Regular property inspections
- Maintenance and repairs coordination
- Rental management and guest services
- Bill payment and financial reporting
- Hurricane preparation and recovery
DIY vs Professional Management:
| Management Type | Best For | Typical Cost | Pros/Cons |
|---|---|---|---|
| Self-Management | Personal use only | Time investment | Lower cost, more control / More responsibility |
| Caretaker | Seasonal residents | $500-1,500/month | Local presence / Limited services |
| Full Management | Rental properties | 10-15% of income | Comprehensive service / Higher cost |
2025 Bahamas Real Estate Market Outlook
Market Trends and Outlook
Growth Drivers:
- Increased US wealth migration post-pandemic
- Cryptocurrency investor interest in tax havens
- Infrastructure development (new airports, marinas)
- Government investment incentives
- Climate resilience compared to other Caribbean islands
2025-2026 Outlook:
- Overall market growth: 4-6% annually
- Luxury segment: 6-8% growth expected
- Rental market: Strong demand continuation
- New construction: 15-20% increase planned
Growth Opportunities
High-Growth Areas:
- Luxury eco-resorts - Sustainable tourism focus
- Marina developments - Superyacht market growth
- Medical tourism facilities - Healthcare infrastructure
- Technology hubs - Crypto and fintech companies
- Renewable energy projects - Government incentives
Market Risks to Consider:
- Climate change impact - Hurricane season intensity
- Regulatory changes - Potential tax law modifications
- Infrastructure limitations - Power and water capacity
- Currency fluctuations - USD peg stability
- Global economic uncertainty - Interest rate impacts
Common Questions About Bahamas Real Estate
How much does it cost to buy a house in the Bahamas?
Foreign buyers typically need at least $500,000 for property purchases, plus 8-15% in closing costs including VAT, legal fees, and other expenses.
What is the property tax rate in the Bahamas?
Owner-occupied properties enjoy a $300,000 exemption, then pay 0.625% on the next $200,000 and 1% on amounts over $500,000 annually.
Can Americans buy property in the Bahamas?
Yes, US citizens can buy Bahamian real estate with the same rights as other foreigners, subject to the $500,000 minimum investment threshold.
Is the Bahamas a good place to invest in real estate?
The Bahamas offers strong investment potential with no income or capital gains taxes, growing tourism, and stable property values, especially in prime locations.
How long does it take to buy property in the Bahamas?
The typical timeline is 45-90 days from offer acceptance to closing, depending on permit requirements and financing complexity.
Do you pay taxes on rental income in the Bahamas?
No, the Bahamas has no income tax on rental profits. However, US citizens must report worldwide income to the IRS.
What islands are best for vacation rentals?
Nassau, Paradise Island, and Harbour Island offer the highest rental yields, while Eleuthera and Exuma provide growth potential.
Can you get permanent residency by buying property?
Yes, investments of $1,000,000+ in real estate can qualify for Economic Permanent Residency, which includes lifetime residency rights.
Can I get a mortgage as a foreigner to buy Bahamas property?
Yes, foreign buyers can obtain financing through local Bahamian banks or their home country banks. Local banks typically require 30-40% down payment with interest rates of 8-12%.
Do I need title insurance when buying property in the Bahamas?
While not mandatory, title insurance is recommended. Local attorneys provide an "Opinion on Title" which serves similar protection, backed by their professional indemnity insurance.
What's the difference between freehold and leasehold property?
Most properties are sold freehold (full ownership). Leasehold properties are typically Crown lands leased by the government for agricultural or development purposes.
Can I use a foreign architect for construction projects?
Foreign architects can design plans, but all building plans must be signed off by a licensed local architect and engineer. You'll also need Town Planning Board approval and building permits.
What's the minimum property value for the homeowner's residence card?
Property owners with properties valued at $250,000+ can apply for an Annual Homeowner's Card ($500/year) for easy entry and one-year stays.
Are there restrictions on property size I can buy as a foreigner?
Foreigners can buy properties up to 5 acres without government approval. Properties over 2 acres or intended for rental require permits under the International Persons Landholding Act.
Can I repatriate profits if I sell my Bahamas property?
Yes, you can repatriate the entire proceeds including profits, provided you register the purchase with the Central Bank's Exchange Control Department at the time of purchase.
What happens if I build on vacant land - can I get VAT refunds?
Yes, if you purchase vacant land and complete construction within 18 months, you may be eligible for a partial VAT refund on the original land purchase.
Is there an MLS system in the Bahamas like in the US?
Yes, the Bahamas has a Multiple Listing Service (MLS) that allows licensed realtors to access and share all property listings throughout the islands.
Work Directly with Glenn Ferguson - Your Bahamas Real Estate Agent
Glenn Ferguson
Licensed Bahamas Real Estate Agent
Permanent Residency Consultant
24+ Years Experience •
Ready to explore Bahamas real estate investment opportunities? As a licensed agent and residency consultant with over two decades of experience, I provide personalized guidance from initial consultation through permanent residency applications.
Why Work with Glenn Ferguson?
- Specializes in EPR and residency applications
- Born and raised in the Bahamas - insider knowledge
- Network of trusted attorneys, banks, and contractors
- Fluent in both US and Bahamian real estate systems
- Personal relationship with government agencies
- Post-purchase support and property management
- Focus on luxury and beachfront properties
Real Estate Services:
- Property selection and market analysis
- Legal coordination and permit assistance
- Financing connections with local banks
- EPR and residency application support
- Construction project management
- Property management and rental programs
Browse Current Listings:
Luxury Bahamas Real Estate |
Beachfront Homes |
Waterfront Properties
📞 FREE 30-Minute Consultation - Call or text Glenn directly to discuss your Bahamas real estate goals!
📞 Direct Line: (242) 395-8495
🌐 Website: bahamaspackagewedding.com
📧 Email: glenn@bahamaspackagewedding.com
"Let me put my 24+ years of Bahamas real estate expertise to work for you. I'll guide you to the perfect property and handle every detail of your investment journey." - Glenn Ferguson
