How to Buy a House in The Bahamas — Step by Step

The 6-Step Buying Process

Here is the exact process I walk every foreign buyer through — whether you are purchasing a $400K Sandyport condo or a $7M Lyford Cay estate.

Closing Costs: What Foreign Buyers Actually Pay

This is the section most competitors leave vague. Here are the real numbers.

VAT on Conveyance (Transfer Tax)

For foreign buyers: a flat 10% VAT on all property purchases over $100,000, regardless of value. This is customarily split 50/50 between buyer and seller — but the split is negotiable, not a legal requirement. So the buyer's share is typically 5% of the purchase price.

For Bahamian citizens, VAT is graduated: 2.5% (under $100K) to 10% (over $1M). First-time Bahamian buyers get further reductions. As a foreign buyer, you pay the flat 10% rate.

Attorney Fees — 2026 Update

Attorney fees follow the Bahamas Bar Association schedule. As of January 2026, the minimum fee for registered land is 3.5% of purchase price. For unregistered land, the minimum is 5%. General conveyancing averages 2.5% for straightforward transactions. All attorney fees are subject to 10% VAT (effective rate: ~2.75–3.85%).

Real-World Example: $1M Purchase

Additional Costs If Financing

Annual Property Tax

The Bahamas charges annual real property tax based on assessed market value. Rates depend on ownership and usage classification.

Key detail: To qualify for the owner-occupied rate, you must reside in the property for six months or more per year and use it exclusively as a dwelling. The annual tax cap of $150,000 applies to owner-occupied properties under the Real Property Tax Amendment Act 2023.

Tax deadline: March 31st each year. Pay before then for a 10% early-payment discount. Surcharges apply after December 31st.

Family Islands: Bahamian citizens pay no property tax on Family Island properties. Foreigners still pay the applicable rate.

For the full breakdown, see the Bahamas Real Estate Taxes — Complete Guide.

Realistic Timeline

Cash purchases typically close in 60–75 days. Financed purchases take 75–120 days. Complex title histories or Family Island properties may extend beyond 90 days.

Residency Through Property Purchase

Property ownership in The Bahamas can open the door to residency. Here are the current pathways.

For the comprehensive residency breakdown including government fees, family endorsement, documents required, and the full application process, see the Bahamas Residency by Investment Guide.

Legal Essentials for Foreign Buyers

The International Persons Landholding Act (IPLA)

Since 1993 (commenced January 1, 1994), the IPLA has governed foreign property ownership. For your first owner-occupied residential purchase (single-family dwelling or condo), you register the purchase with the Investments Board after closing — no prior government permit needed. A government permit is required for second or subsequent non-Bahamian purchases, if the property exceeds 5 contiguous acres, is undeveloped land intended for development, or will be used for rental, investment, or commercial purposes.

Central Bank & Currency

The Bahamian dollar is pegged 1:1 to the US dollar — both currencies are accepted everywhere. Foreign buyers paying in foreign currency (USD, GBP, EUR, CAD) do not require Central Bank Exchange Control approval for the purchase. If you fund the purchase through a Bahamian dollar bank account, Exchange Control registration is required for future repatriation of sale proceeds.

Conveyancing Amendment Act 2025

Effective July 2025, this Act requires that the VAT invoice from the Comptroller of Inland Revenue be obtained and settled before deed execution — previously, this could be done concurrently. It also mandates registration of conveyances within 180 days. These changes add a procedural step but improve transaction transparency.

What Your Attorney Handles

Your Bahamian attorney is essential. They conduct the 30-year title search across four registries, draft or review the sale and purchase agreement, prepare the deed of conveyance, obtain the VAT invoice from the Comptroller, handle VAT stamping at the Public Treasury, record the deed at the Registry of Records, and file your Investments Board registration. Budget 2.5–3.5% of purchase price, plus 10% VAT on the fee.

If You Plan to Rent

Rental properties require a business license and potentially Hotel Licensing Department registration. Short-term vacation rentals (under 45 days) are subject to 10% VAT. Professional property management is strongly recommended for absentee owners. Rental income is not taxed in The Bahamas. I can connect you with licensed property managers across Nassau and the Family Islands.

Estate Planning

Foreign property owners should execute a separate Bahamian will covering only their Bahamas assets. Without one, your property passes under Bahamian intestacy laws, which may not align with your wishes or your home country’s estate plan. Cost: approximately $350 (Bahamas Bar Association schedule, effective January 2026). For the full legal framework, see the Complete Buyer's Legal Guide.

Best Areas to Buy

Not Sure Which Area? Tell Glenn Your Goals

Buyer Document Checklist

Condo vs. House: Which Is Right for You?

Tax Advantages: Bahamas vs. United States

*Since January 2024, a 15% Qualified Domestic Minimum Top-Up Tax (QDMTT) applies to multinational groups with €750M+ global revenue (OECD Pillar Two). Does not affect individual property buyers or typical small businesses.

A US-based earner making $500K annually pays roughly $150K–$180K in federal and state income tax. In The Bahamas: zero. Even with higher import costs and property transfer taxes, most high earners save six figures annually by establishing Bahamas residency.