Buying Real Estate in The Bahamas
Freehold ownership, zero income tax, zero capital gains, a currency pegged 1:1 to USD, and a clear residency pathway through property investment. This guide covers every practical detail — from the 7-step process to exact closing costs at four price points.
The Bahamas — freehold ownership, zero income tax, and one of the Caribbean's strongest real estate markets
What You Need to Know Before Buying
The Bahamas is one of the most foreign-buyer-friendly real estate markets in the world. Foreign nationals receive full freehold ownership — the same rights as Bahamian citizens — under English common law. There is no income tax, no capital gains tax, no inheritance tax, and the Bahamian dollar is pegged 1:1 to the US dollar. With 11 million-plus visitors in 2024 and direct flights from over 20 US cities, the investment fundamentals are strong for both personal use and rental income.
This guide covers everything: the 7-step buying process, closing costs at four price points, property tax rates, the best areas for every budget, residency through real estate, and rental income potential — all with verified 2026 data and links to interactive calculators.
Why Buy Real Estate in The Bahamas
Tourism economy: The Bahamas welcomed over 11 million visitors in 2024, driving strong year-round rental demand across Nassau, Paradise Island, and the Out Islands. Branded residences at Baha Mar, Rosewood, and Four Seasons command premium nightly rates.
The 7-Step Buying Process
A typical cash purchase closes in 60–90 days. Glenn manages every step as a single coordinated process.
| Step | What Happens | Timeline |
|---|---|---|
| 1. Engage a BREA-licensed agent | Seller pays commission — using a buyer's agent costs you nothing. Glenn (BREA Licensed) provides MLS access + off-market inventory. | Day 1 |
| 2. Define criteria and budget | Island, property type, budget, goal (personal use, rental, residency, or combination). Glenn curates a matched shortlist. | Week 1 |
| 3. Tour and analyse | In-person or video tours. Glenn provides comparable closed sale prices, HOA review (including rental restrictions), and rental projections. | Weeks 1–3 |
| 4. Make an offer | Written offer with 10% deposit held in attorney escrow. Refundable per agreement terms. Glenn negotiates using closed sale data. | Week 3–4 |
| 5. Hire a Bahamian attorney | Title search (30+ years), conveyance documents, closing management. Fees: 2.5–3.5% of price + 10% VAT. | Weeks 4–8 |
| 6. Registrations and VAT invoice | BIA registration (record-keeping). Attorney obtains VAT invoice from DIR before deed execution (Conveyancing Amendment Act 2025). | Weeks 6–10 |
| 7. Close, transfer title, file residency | Pay VAT (10%, split negotiable), legal fees, balance. Freehold title transfers. For $1M+, Glenn files EPR application. | Week 8–12 |
Mortgage-backed purchases add 4–8 weeks. Since July 2025, VAT invoice must be obtained before deed execution. Source: Conveyancing and Law of Property (Amendment) Act 2025.
Full Step-by-Step Guide 10 Steps to BuyingClosing Costs — What You Actually Pay
| Cost Item | Rate | $500K | $1M | $2M | $5M |
|---|---|---|---|---|---|
| VAT on conveyance (buyer's 50%) | 5% | $25,000 | $50,000 | $100,000 | $250,000 |
| Legal fees (incl. 10% VAT) | 2.75–3.85% | $13,750–$19,250 | $27,500–$38,500 | $55,000–$77,000 | $137,500–$192,500 |
| Title insurance | 0.5–1% | $2,500–$5,000 | $5,000–$10,000 | $10,000–$20,000 | $25,000–$50,000 |
| BIA registration | Nominal | ~$250 | ~$250 | ~$250 | ~$250 |
| Total buyer-side | 8–11% | $41.5K–$49.5K | $82.8K–$98.8K | $165.3K–$197.3K | $412.8K–$492.8K |
VAT 10% total (split 50/50 customarily — negotiable). Legal fees: 2.5–3.5% base + 10% VAT. Sources: VAT (Amendment) Act 2022, BREA conveyancing rates.
Calculate Your Closing Costs Complete Cost GuideTax Advantage — What You Pay and Don't Pay
Annual Property Tax
| Property Value | Owner-Occupied | Non-Owner / Rental |
|---|---|---|
| $500,000 | $1,250/yr | $5,000/yr |
| $1,000,000 | $6,250/yr | $15,000/yr |
| $2,000,000 | $16,250/yr | $35,000/yr |
| $5,000,000 | $46,250/yr | $95,000/yr |
Owner-occupied: first $300K exempt, 0.625% to $500K, 1% above, capped $150K/yr. Non-owner: 1% first $500K, 2% above. RPT Act 2023.
Property Tax Calculator 5-Jurisdiction Tax Comparison
Best Areas to Buy Real Estate
| Area | Character | Price Range | Best For |
|---|---|---|---|
| Cable Beach | Baha Mar, new condos, resort strip | $250K–$6M+ | Condo investors, rental income |
| Paradise Island | Atlantis, Four Seasons, premium beach | $350K–$25M+ | Luxury lifestyle, prestige |
| Palm Cay | Gated marina, beach club, family | $400K–$2.5M | Families, boaters, community |
| Sandyport | Gated canal-front, village feel | $500K–$2M | Families, expat community |
| Old Fort Bay | Gated, golf, exclusive west Nassau | $1.5M–$10M+ | Established buyers, privacy |
| Lyford Cay | Ultra-exclusive gated, marina, golf | $2M–$30M+ | UHNW families, legacy estates |
| Albany | Ultra-luxury, Ernie Els golf, marina | $2M–$40M+ | UHNW, yachting, lock-and-leave |
| Harbour Island | Pink Sands, boutique luxury | $800K–$5M+ | Privacy, appreciation, second home |
| Eleuthera | French Leave, eco-luxury | $400K–$3M+ | Serenity, nature, remote work |
| Exuma | Crystal waters, private islands | $500K–$20M+ | Waterfront estates, exclusivity |
Residency Through Real Estate
| Path | HORC | Standard EPR | Accelerated EPR |
|---|---|---|---|
| Min. investment | Any value | $1,000,000 | $1,500,000+ |
| Fee | $500/yr + $25/dep | $20,000 app + $300/family | $20,000 app + $300/family |
| Processing | Standard | Months | ~3 weeks |
| Hold period | Must own | 10 years | 10 years |
| Presence | No minimum | 90 days/yr | 90 days/yr |
| Work rights | No | No (separate permit) | No (separate permit) |
EPR threshold increased to $1M on Jan 1, 2025 (from $750K). Source: Bahamas Immigration Dept, Fragomen Advisory.
Check Eligibility Residency Quiz Residency Cost CalculatorRental Income Potential
The Bahamas does not tax rental income. Well-located properties in Nassau and Paradise Island can achieve 5–8% gross rental yields with 70–85% occupancy. Short-term vacation rentals command premium nightly rates, particularly in branded residences and beachfront locations.
Rental costs to factor: property tax reclassification to non-owner rates (roughly double), business license ($250–$1,250/yr), property management (15–25% of gross), cleaning/turnover, platform fees (Airbnb/Vrbo 3–15%), and hotel licensing for stays under 45 days with 10% VAT on rental income. Check HOA rules — buildings with short-term rental rights can command 20–40% higher values than those with restrictions.
ROI Calculator
Glenn Ferguson — BREA Licensed Bahamas Real Estate Agent / Bahamas MLS Member / Residency Consultant / 24+ Years All Islands
Ready to Buy Real Estate in The Bahamas?
Glenn handles the property search, attorney coordination, closing management, and residency filing — one point of contact from first call to key handover.
Run Your Numbers — Free Calculators
Start Your Bahamas Property Search
Tell Glenn your budget, preferred area, and goals. He'll provide a matched shortlist, closing cost projection, and residency assessment.
WhatsApp is typically answered within minutes.
Frequently Asked Questions
Can foreigners buy real estate in The Bahamas?
Yes. Full freehold ownership — same rights as Bahamian citizens. No permit for owner-occupied residential. BIA registration only. 0% income/gains/inheritance tax. Foreign Buyer Guide.
How much does it cost to buy?
8–11% buyer-side closing costs: VAT 5% (buyer share), legal 2.5–3.5% + VAT, title 0.5–1%. On $1M = ~$83K–$99K. Closing Cost Calculator.
What is the annual property tax?
Owner-occ: first $300K exempt, 0.625% to $500K, 1% above, capped $150K/yr. Non-owner: 1% first $500K, 2% above. $1M owner = ~$6,250/yr. Tax Calculator.
What are the best areas?
Cable Beach ($250K–$6M+), Paradise Island ($350K–$25M+), Palm Cay ($400K–$2.5M), Sandyport ($500K–$2M), Lyford Cay ($2M–$30M+), Albany ($2M–$40M+), Eleuthera, Exuma. AI Property Finder.
Can I get residency?
HORC ($500/yr, any value). EPR ($1M+, Jan 2025, permanent). Accelerated ($1.5M+, ~3 weeks). 90 days/yr presence. Check Eligibility.
What taxes do owners pay?
0% income, 0% CGT, 0% inheritance. Annual property tax 0.625–2%. VAT 10% on professional services. Home-country obligations apply. Tax Guide.
How long does it take?
60–90 days cash. Add 4–8 weeks for mortgage. Offer to closing: title search (2–4 weeks), BIA registration, VAT invoice, closing.
Do I need a Bahamian attorney?
Yes. Required for conveyancing. Fees: 2.5–3.5% + 10% VAT. Both sides need separate attorneys. Glenn recommends trusted attorneys at every price level.
Can I rent out my property?
Yes. 0% Bahamas income tax on rental. Tax reclassifies to non-owner rate (~2x). Business license required. Check HOA rental restrictions. ROI Calculator.
Is Bahamas real estate a good investment?
0% tax on income/gains, USD peg, 11M+ visitors (2024), 5–8% gross yields, freehold ownership. Trade-off: higher closing (8–11%) and operating costs vs US mainland.
What is the buying process?
7 steps: engage agent, define criteria, tour, offer + 10% deposit, hire attorney, BIA registration + VAT invoice, close + transfer title. Full Guide.
Owner-occupied vs non-owner tax?
Owner-occ: $300K exempt, 0.625%, 1%, $150K cap. Non-owner: 1%/2%. On $1M: $6,250 vs $15,000. Only one property per person qualifies.
Do I need Central Bank approval?
No. Foreign currency purchases don't require approval. Register with Exchange Control at closing for repatriation of proceeds when you sell.
How does Bahamas compare to other jurisdictions?
Bahamas: 10% VAT (split), 0% tax, EPR $1M. Cayman: 7.5–10% stamp, $1.2M+ residency. TCI: 6.5–10% stamp, $1M PRC. Florida: ~2–5% closing, 1.02% tax (no cap), federal tax applies. Full Comparison.
Who should I call to buy?
Call Glenn Ferguson at +1-242-395-8495. BREA Licensed Bahamas Real Estate Agent, 24+ years. Property search + closing + residency — single point of contact. Full Toolkit.
View Glenn's credentials →Related Guides
Sources
- Real Property Tax Act, as amended 2023 — owner-occupied and non-owner tiers, $150K cap
- VAT (Amendment) Act, 2022 — 10% flat VAT for foreign buyers, effective July 2023
- Conveyancing and Law of Property (Amendment) Act, 2025 — VAT invoice before deed execution
- Bahamas Immigration Department — EPR requirements, HORC
- Fragomen Advisory, January 2025 — EPR threshold increase to $1M
- Department of Inland Revenue, Bahamas (inlandrevenue.finance.gov.bs) — RPT rates
- Bahamas Investment Authority (BIA) — foreign investment registration
- Central Bank of The Bahamas — Exchange Control, BSD:USD peg
- International Persons Landholding Act 1993 — foreign ownership framework
- Bahamas Ministry of Tourism — 2024 visitor statistics (11M+)
- BREA (breabahamas.com) — commission rates, agent licensing
The Smart Way to Buy Bahamas Real Estate
The Bahamas offers one of the strongest investment cases in the Caribbean — freehold ownership, zero income and capital gains tax, a USD-pegged currency, and a clear residency pathway. But the costs that do apply (8–11% closing, annual property tax, insurance, utilities) need to be understood before you commit. Use the 10 free calculators to run your numbers, or call Glenn Ferguson for a complete cost projection on any property.
Start Your Property Search Today
Glenn provides a matched shortlist, closing cost projection, and residency assessment — all before you make an offer.
© HomesForSaleInNassauBahamas.com · Glenn Ferguson · Nassau, Cable Beach & The Bahamas
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