Guide to Buying Property in The Bahamas
Everything you need to buy property in The Bahamas — ownership rights, the step-by-step process, closing costs, taxes, best islands, financing, residency, and rental income.
The Bahamas offers foreign buyers full freehold ownership, zero income tax, zero capital gains tax, and a clear path to permanent residency through real estate investment. This guide covers every detail from first inquiry to key handover.
Why The Bahamas
Why Buy Property in The Bahamas?
Tax-Free Environment
No income tax, no capital gains tax, no inheritance tax, no wealth tax. Rental income from Bahamas property is not taxed by the Bahamian government. One of the world's most favorable tax jurisdictions.
Full Freehold Ownership
Foreign buyers receive the same ownership rights as Bahamian citizens — full freehold title, no expiration, no leasehold, no restrictions on owner-occupied residential purchases.
USD Currency Peg
The Bahamian dollar is pegged 1:1 to the US dollar. Both currencies are accepted everywhere. No foreign exchange risk for American buyers. International buyers transact in USD.
Residency Pathway
Invest $1,000,000+ in residential real estate and qualify for Economic Permanent Residency. Live, work, and bank in The Bahamas. Family included. No requirement to renounce existing citizenship.
Record Tourism Economy
12.5 million visitors in 2024. $7 billion in tourism revenue. Strong year-round rental demand. Branded residences at Baha Mar, Rosewood, and Four Seasons drive premium nightly rates.
Proximity to the US
Nassau is 187 miles from Miami — a 45-minute flight. Direct flights from 20+ US cities. Grand Bahama is just 55 miles from Florida's coast. Weekend accessibility drives demand.
"Most buyers come for the lifestyle and discover the investment case. No income tax, no capital gains, strong rental yields, and currency stability — The Bahamas checks every box for both personal use and wealth building."
Foreign Ownership Rights
What Rights Do Foreign Buyers Have in The Bahamas?
Do foreigners need a permit? For owner-occupied residential properties, no government permit is required. Your purchase is registered under the International Persons Landholding Act, 1993, for record-keeping only — it does not restrict or delay anything. Your attorney handles this at closing.
When is a permit required? A Bahamas Investment Board permit is required for: undeveloped land of 2 or more acres, property not intended as owner-occupied (e.g. purchased solely as a rental investment), or commercial property. Glenn advises on these applications.
What can you do with your property? Sell it freely, rent it (long-term or short-term, subject to HOA rules), renovate it, pass it to heirs (no inheritance tax), or use it to qualify for Economic Permanent Residency if the investment meets the $1M threshold.
Confusing The Bahamas with Caribbean nations that restrict foreign ownership to leasehold. The Bahamas offers full freehold — one of the most foreign-buyer-friendly jurisdictions in the world.
Property Types
What Types of Property Can You Buy in The Bahamas?
Condominiums
Most popular entry point. Branded residences at Goldwynn, One Cable Beach, and Baha Mar. Many allow short-term rentals. HOA fees include building insurance, common areas, and amenities. Entry from ~$300K.
Single-Family Homes
Gated communities like Ocean Club Estates, Lyford Cay, Albany, Old Fort Bay, and Palm Cay. Private pools, beachfront, and marina access. The luxury segment of the market. $1M to $40M+.
Townhouses
Lower maintenance than single-family, more space than condos. Increasingly available in new Nassau developments. Good balance of lifestyle and investment. $500K to $1.5M.
Vacant Land
Build your custom home with a local licensed architect. Vacant land commission is 10% (vs. 6% improved). Investment Board permit needed for 2+ acres undeveloped. Beachfront lots are scarce.
Commercial Property
Retail, office, hotel, and mixed-use. Requires Investment Board approval for foreign buyers. 6% commission on commercial buildings. 10% on commercial businesses. Separate due diligence process.
Private Islands
The Bahamas has more private islands for sale than any Caribbean nation. Exuma chain is the most popular. Requires infrastructure planning, government approvals, and specialized knowledge. $1M to $120M+.
"Before you fall in love with a property, I review the HOA documents for rental restrictions. Buildings with short-term rental rights can be worth 20-40% more than identical units in buildings that restrict them. This is the single most overlooked factor in Bahamas buying."
The 7-Step Buying Process
How to Buy Property in The Bahamas — Step by Step
Engage a BREA-Licensed Agent
Hire a licensed agent with active Bahamas MLS membership. Glenn Ferguson (BREA #1247) provides full MLS access, off-market inventory, comparable closed sale data, and residency filing — all under one roof. The seller pays the agent's commission, so using a buyer's agent costs you nothing.
Define Your Criteria & Budget
Specify your preferred island, property type, budget range, and primary goal — personal use, rental income, residency qualification, or a combination. Glenn curates a matched shortlist including off-market properties not available on portals.
Tour Properties & Analyze
Visit shortlisted properties in person or via video tour. Glenn provides comparable closed sale prices, $/sqft analysis, HOA document review (including rental restrictions), and property-specific rental projections — the intelligence portals don't offer.
Make an Offer
Submit a written offer with a 10% deposit held in escrow by the seller's attorney. Glenn negotiates price and terms using closed sale data and market intelligence. The deposit is refundable if the transaction falls through for reasons specified in the agreement.
Hire a Bahamian Attorney
Your attorney conducts a title search (confirming clear ownership back 30+ years), prepares conveyance documents, and manages the legal closing. The attorney's opinion on title functions like title insurance under Bahamas law — the attorney is personally liable for title defects. Glenn recommends trusted attorneys.
Complete Registrations
Register under the International Persons Landholding Act, 1993 (standard for all foreign purchases — record-keeping only, no restriction). Bahamas Investment Board approval is required for undeveloped land of 2+ acres or property not intended as owner-occupied.
Close, Transfer Title & File for Residency
Pay VAT on conveyance (5% buyer share), legal fees, and the remaining purchase balance. Title transfers to your name as freehold owner. For purchases of $1,000,000 or more, Glenn files your Economic Permanent Residency (EPR) application — no separate immigration firm needed.
"I give every buyer a detailed closing cost estimate and timeline before they make an offer. No surprises. I also negotiate VAT on conveyance splits — not every deal has to be 50/50. On a $2M property, a 60/40 split saves the buyer $20,000."
Ready to Start the Process?
Glenn provides a personalized shortlist, cost estimate, and timeline before you commit.
Closing Costs
What Does It Cost to Buy Property in The Bahamas?
| Cost Item | Buyer Pays | Notes |
|---|---|---|
| VAT on Conveyance (buyer share) | 5% | 10% total for foreign buyers; typically split 50/50 between buyer and seller |
| Legal Fees (attorney) | 1–2.5% | Title search, conveyance, closing management; Bahamas Bar Assoc. suggested scale is 2.5% |
| VAT on Professional Services | 10% of fees | Applied to legal fees and agent commissions |
| Title Insurance (optional) | 0.5–1% | Available through Bahamas-based insurers; recommended for foreign buyers |
| Total Buyer Costs | ~7–8% | Of purchase price |
VAT on conveyance explained: For Bahamian citizens, the VAT rate is graduated (2.5% under $100K up to 10% over $1M). For most foreign buyer transactions, the rate is 10% of the purchase price. Market practice is to split this 50/50 between buyer and seller, though this is negotiable in the sales agreement.
Example — $1.5M home purchase: VAT on conveyance (buyer's 5%): $75,000. Legal fees (~2%): $30,000. VAT on services: ~$3,000. Title insurance (~0.75%): ~$11,250. Total buyer costs: ~$119,250 (approximately 8%).
Seller costs: The seller pays 50% of the VAT on conveyance, the real estate commission (6% on improved property, 10% on vacant land), and their own legal fees.
Budgeting 2-3% for closing because a blog only mentioned "legal fees." The 5% VAT on conveyance is the largest cost and surprises most first-time Bahamas buyers. Always get a detailed cost estimate before making an offer.
Tax Advantage
What Taxes Do Property Owners Pay in The Bahamas?
Annual real property tax: Owner-occupied homes under $300,000 are fully exempt. The rate is 0.625% per annum on the portion between $300,000 and $500,000, and 1% per annum on the portion above $500,000. Owner-occupiers must reside in the property for 6+ months per year to qualify for owner-occupied rates. Non-owner-occupied and commercial properties pay higher rates.
VAT on services: A 10% Value Added Tax applies to real estate professional services including agent commissions, legal fees, and appraisal fees. This is a transaction cost, not an ongoing tax.
Important for US citizens: The United States taxes citizens on worldwide income regardless of residency. Bahamas EPR does not exempt US citizens from IRS obligations. Glenn connects EPR clients with international tax advisors who specialize in cross-border structures.
"The Bahamas' 5% buyer-share VAT on conveyance combined with zero ongoing taxation is the most favorable total structure in the Caribbean. Compared to Turks & Caicos (12.5% transfer tax) or BVI (12%), the math is clear."
Best Islands & Areas
Where Should You Buy Property in The Bahamas?
Nassau & Paradise Island
Ocean Club Estates, Lyford Cay, Albany, Old Fort Bay, Palm Cay, Cable Beach. The deepest market with strongest resale liquidity. Entry from ~$300K (condos) to $40M+ (estates).
Cable Beach & Baha Mar
Goldwynn, One Cable Beach, Rosewood Residences. Newest construction. Walking distance to the $4.2B Baha Mar resort. Branded residences drive premium rental returns.
Exuma
Crystal waters, celebrity buyers, private islands. Limited inventory creates scarcity pricing and premium nightly rates. The Swimming Pigs and Thunderball Grotto drive year-round tourism.
Eleuthera & Harbour Island
Pink sand beaches, boutique luxury. Strong tourism growth. Privacy-focused international buyers. Harbour Island commands among the highest per-square-foot prices in The Bahamas.
Abaco
Post-Dorian recovery. Record visitors in 2025. Baker's Bay, Treasure Cay, Hope Town, and Elbow Cay. Prices rising from post-hurricane lows with significant upside potential.
Grand Bahama
Just 55 miles from Florida. Record visitors in 2025 (first time in 22 years). Lowest luxury entry prices in The Bahamas. Port Lucaya, Fortune Bay, and beachfront communities.
"I work across all six markets and I'll honestly tell you which fits — even if it's not what you expected. A rental-income buyer needs a different island than a privacy buyer. The portal can't make that distinction. I can." Read the 2026 Market Report.
Not Sure Which Island Is Right?
Glenn provides island-by-island recommendations based on your specific goals and budget.
Financing Options
Can Foreigners Get a Mortgage in The Bahamas?
Banks that lend to foreign buyers: RBC Royal Bank (Bahamas), CIBC FirstCaribbean International Bank, and Scotiabank (Bahamas). Each has different requirements and rates. Glenn connects buyers with lending officers at all three.
Cash vs. mortgage: Cash purchases close faster (45-60 days vs. 90-120 days with financing), have stronger negotiating power, and avoid Bahamian interest rates that are higher than US rates. If you're financing through a US bank against existing assets, that's often a better structure than a Bahamian mortgage.
Payment process: Most foreign buyers wire funds directly to the seller's attorney's escrow account. Since BSD is pegged 1:1 to USD, American buyers face no currency conversion. You do not need a Bahamian bank account to purchase property.
Exchange Control registration: Foreign buyers should register their investment with the Exchange Control Department of the Central Bank of The Bahamas at the time of purchase. This ensures you can repatriate the entire proceeds including any profits when you sell.
Residency Through Real Estate
Can Buying Property Get You Bahamas Permanent Residency?
What EPR gives you: The right to live, work, and bank in The Bahamas indefinitely. You become a tax resident of a zero-income-tax nation. No requirement to renounce your existing citizenship.
Annual residency without EPR: Investing at least $250,000 in real estate qualifies you for an Annual Homeowner's Residence Card, which facilitates your entry and re-entry into The Bahamas but does not include the right to work.
For EPR-focused buyers: Property selection matters. Glenn identifies properties meeting the $1M threshold with strong appreciation potential over the 10-year hold period and rental income when you're not in residence. If you sell before year 10, you must reinvest into another qualifying property or risk losing EPR status.
Reading outdated guides citing the $750K threshold. That figure expired January 1, 2025. Budgeting $750-$999K for EPR qualification means you'll fall short of the current $1M minimum.
Rental Income & ROI
What Rental Income Can You Earn from Bahamas Property?
Short-term rental rates by area: Cable Beach/Baha Mar branded residences: $400-$1,200/night. Exuma: ~$750/night. Eleuthera/Harbour Island: $450-$800/night. Nassau condos: $150-$400/night. These are peak-season ranges — Glenn provides property-specific pro-formas with seasonal occupancy adjustments.
Property management: Expect 20-30% of gross rental income for full-service management (guest coordination, cleaning, maintenance, owner reporting). Some branded residences include management programs at negotiated rates.
HOA rental restrictions: This is the single most overlooked factor in Bahamas buying. Some buildings allow short-term vacation rentals (Airbnb/VRBO). Others restrict to long-term only (6+ months). Buildings with short-term rental rights can be worth 20-40% more than identical units with restrictions. Glenn reviews HOA documents before you make an offer.
Licensing: Short-term rental properties (under 45 days) are subject to 10% VAT. Owners must register with the Hotel Licensing Department of the Bahamas Ministry of Tourism.
"I provide property-specific rental pro-formas — nightly rates, seasonal occupancy, management fees, and net yield. Not generic island averages. The difference between a 5% and 8% net yield on a $1.5M property is $45,000 per year."
Annual Ownership Costs
What Are the Annual Costs of Owning Bahamas Property?
| Annual Cost | Typical Range | Notes |
|---|---|---|
| Real Property Tax | 0–1% | Owner-occupied under $300K exempt; 0.625% ($300K–$500K); 1% above $500K |
| Homeowner's Insurance | 1.5–3% | Of insured value; includes hurricane coverage (mandatory for mortgaged properties) |
| HOA Fees | $400–$2,500+/mo | Varies by community; covers building insurance, common areas, amenities |
| Property Management | 20–30% | Of gross rental income; for vacation rental owners not managing directly |
| Maintenance | 1–2% | Of property value; salt air accelerates wear on exteriors and fixtures |
Insurance note: The Bahamas is in the hurricane belt. Insurance costs are higher than mainland US but are a non-negotiable expense. Policies typically cover wind, flood, and named storms. Glenn connects buyers with insurance brokers who specialize in island properties.
Property tax residency requirement: To qualify for the lower owner-occupied property tax rates, you must reside in the property for 6 or more months per year. Otherwise, the property is classified as non-owner-occupied and taxed at commercial rates.
Your Expert Guide
Why Buy With Glenn Ferguson?
Off-market access. Many luxury properties sell before hitting the MLS. Glenn surfaces opportunities across Lyford Cay, Ocean Club, Albany, Old Fort Bay, and the Family Islands through 24 years of relationships.
Closed sale intelligence. Portals show asking prices. Glenn provides actual closed prices, $/sqft trends, and days-on-market — the data that drives smart negotiation. The Bahamas has no public closed sale database.
Full-service search to residency. Property search, HOA review, cost estimates, attorney coordination, closing management, and EPR filing if applicable. No handoff to other firms.
Rental income projections. Property-specific pro-formas with nightly rates, seasonal occupancy, management fees, and net yield — not generic island averages.
Multi-island expertise. Nassau, Paradise Island, Cable Beach, Exuma, Eleuthera, Abaco, Grand Bahama. Glenn tells you which island fits your goals — even if it's not the one you originally expected.
International buyer experience. The majority of Glenn's clients are from the US, Canada, and Europe. He understands cross-border considerations and connects you with international tax advisors.
Start Your Property Search
Get a Tailored List of Bahamas Properties
Tell Glenn what you're looking for and receive a personalized shortlist — including off-market listings not available on any portal.
Keep Reading
Related Bahamas Guides
Can a Foreigner Buy a House?
Foreign ownership rights, permits, and the complete process explained for international buyers.
Read the Guide7 Things to Know Before Buying
Critical facts that separate informed buyers from costly mistakes. HOA traps, real costs, island selection.
Read the Guide2026 Market Report
12.5M visitors, $7B tourism revenue, island-by-island pricing data, and Glenn's forecast.
Read the ReportResidency by Investment
$1M EPR threshold, 10-year hold, 90-day presence, qualification process, and tax advantages.
Read the GuideHow to Find the Right Agent
BREA licensing, 7 questions to ask, red flags, and agent vs. portal comparison.
Read the GuideBrowse MLS Listings
Live Bahamas MLS listings plus Glenn's off-market inventory. Filter by island, type, and price.
Browse Listings
Frequently Asked Questions
Buying Property in The Bahamas — FAQ
Can foreigners buy property in The Bahamas?
How much does it cost to buy property in The Bahamas?
Do I need a permit to buy as a foreigner?
What taxes do property owners pay in The Bahamas?
Can buying property get me Bahamas residency?
Can I get a mortgage as a foreigner?
Can I rent out my Bahamas property?
What is the best island to buy property?
Is it safe to buy property in The Bahamas?
What happens to my property if I pass away?
Do I need to live in The Bahamas to own property?
Who should I call to buy property in The Bahamas?
Ready to Buy Property in The Bahamas?
Glenn Ferguson — 24+ years, full MLS access, off-market inventory, comparable data, and residency filing. One call starts everything.
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