Insider Tips for Foreigners Buying Property in the Bahamas

Buying Property in The Bahamas

The video provides information on buying property in the Bahamas, including the lack of restrictions for foreigners purchasing new homes, the tax benefits of the country, and the process of acquiring a property. It also mentions the requirements for permanent residency and working in the Bahamas, as well as tips for traveling and living in the country.

1. The Bahamas is a popular destination for property investments, especially for Americans, Canadians, and Europeans.

• Nassau, the capital, is the most popular place for investment.
• Tenancy laws in the Bahamas are business-friendly, allowing freedom in negotiating short-term rentals.
• The Bahamas is considered a tax haven with no income, inheritance, gifts, or capital gains taxes.
• September is the cheapest and best time to travel to the Bahamas.

2. Buying property in the Bahamas is attractive for foreigners due to its stable real estate market, and lack of restrictions.

• The Bahamas is known for its stability in the real estate market and is the third wealthiest country in the New World.
• Foreigners have no restrictions on acquiring new homes in the Bahamas, with 80% of buyers being American.
• A permit is only required for properties over 5 acres or undeveloped land.
• The Bahamas is considered a tax haven, as citizens do not pay taxes on income, inheritance, gifts, or capital gains.

3. When buying property in the Bahamas, estate fees or commissions are usually 6% for houses or 10% for undeveloped land, and legal fees are typically about 1.5% of the purchase price.

• Foreign buyers should find a reputable lawyer to guide them through the process and address any legal complications with the title.
• Property taxes in the Bahamas are based on the assessed value, ranging from 1% for properties valued under 100,000.00 Bahamian dollars to 2% for properties over $500,000.00
• Most properties in the Bahamas are sold freehold, but there are exceptions for leasehold properties, which are generally government-owned and used for agricultural or development purposes.

4. Tips for traveling and living in The Bahamas.

• No need for adapters for electronics if coming from North America.
• Public buses, boat tours, water taxis, and inter-island air service are the best ways to get around.
• Look for local vans near beaches or shopping areas for tasty street food.
• Tipping is similar to the USA, around 15-20%.
• Permanent residency requires purchasing and maintaining a residence valued at $500,000 or higher.
• The Bahamian government prioritizes employment opportunities for locals.
• Expats have access to excellent healthcare and local/international schools.

The Bahamas is one of the most sought-after tourist spots in the world made up of 700 incredible tropical islands and is only about 90 miles from southeast Florida. Boasting its clear water, scenic beauty, and all-year-round tropical weather, no wonder people just keep coming back.  The most popular place for investment in the Bahamas is Nassau the capital, it is the center of all tourist activities and is located on New Providence Island. 

Ex-pats in The Bahamas

Here are some of the other facts about the Bahamas. Many ex-pats dream of owning a little slice of paradise in the Caribbean particularly as the region is one of the top-rated destinations for vacation and retirement homes, not to mention most of the property investors are Americans, Canadians, Europeans, and other countries that are attracted to live work and buy property in The Bahamas. Here's what you need to know if you're considering investing in The Bahamas realty market as your new enterprise.

Bahamas Enterprise Friendly Tenancy Laws

• Friendly tenancy laws for example short-term rentals holiday or vacations or common rentals are freely negotiated between the landlord and tenant with no government restrictions placing limits on the values.
• For common rentals, a security deposit is normally required as well as an advance payment of the first and last month's rent. 
• For vacation rentals, a reservation fee of 20% to 50% is often charged.

Considered as a tax haven with no income inheritance gifts or capital gains. The Bahamas has all year round tropical weather the cheapest and best time to travel is in September.  High demand for upscale investment properties with positive property returns.

Current Bahamas Market conditions

Let's take a closer look at the current market status of the Bahamas. The Bahamas is an international center for banking activities that attracts foreign financial institutions because of its reputation for stability in the real estate market. It is also the third wealthiest country in the New World after the US, and Canada with a per capita GDP of $32,217.90 as of 2018 noted by Investopedia.  Thanks to the foreign buying of property ownership that helps to stabilize the real estate market on the island.

Foreigners Buying Property in The Bahamas

So what are the basics of buying a property as a foreign?  Buying property in the Bahamas has no restrictions on foreigners acquiring new homes, in fact, 80 percent of the Bahamas buyers are American and the majority of the 5.5 million tourists who visit the Bahamas each year come from the U.S.

A buyer may only need a permit from the Bahamian government if the property being bought is more than 5 acres or is undeveloped land, if not, the property must only be registered with the investment board, and the central bank after the transaction.

Bahamas Taxes

Similar to the Cayman Islands, the citizens of the Bahamas don't pay taxes on income, inheritance, gifts, and capital gains.  The Bahamian government earns revenue primarily from VAT,  import duties, stamp duties, real property tax, casino tax, and license fees.  Their VAT tax is 10%.  Hence it is considered a tax haven.

Bahamas Property Acquisition Cost

Property acquisition costs to consider.  When a property changes hands a stamp duty between 2.5% to 10% is charged by the government.  The buyer and the seller usually split this expense 5% to each. The Bahamas real estate fees or commission is usually 6% for houses or 10% for undeveloped Land.  Legal fees may vary depending on the buyer's share but usually about 1.5% of the purchase price.

Quick tip -  foreign buyers in the Bahamas should find a reputable lawyer to help guide you through the process and catch any legal complications with the title.

Are there any property taxes in the Bahamas? 

Property taxes on an investment property are based on the assessed value, for example, a property that is valued under a Hundred Thousand Bahamian Dollars ($100,000.00) is taxed around one percent, properties that are more than Five Hundred Thousand Dollars ($500,000.00) the tax is two percent. In addition to that, there's a maximum annual property tax of Sixty Thousand Dollars ($60,000.00) on owner-occupied properties.

The vast majority of properties are sold freehold there are a few exceptions for leasehold properties these properties are generally crown land government-owned properties that are leased for agricultural or development purposes. The government of the Bahamas does not generally sell its properties.

Bahamian Company for Assets Protection

In many cases forming a local company can be wise for asset protection, for example, in a part B&B shared ownership offer, will form a local company in which each of the owners hold a relevant interest the company will be the title owner of the property we're connected only via a management agreement.

Can you finance a home in the Bahamas?

Yes mortgage financing in the Bahamas is similar to other Caribbean destinations. This option may seem quite difficult but bank financing can work for those who qualify. Ideally it takes two months to qualify for a mortgage, you may need 50% equity for the property but this may vary depending on the bank.

English is the official language in the Bahamas and one Bahamian dollar is approximately one US dollar.

Some tips when traveling to the Bahamas

• If you're coming from North America, there's no need to bring adapters for your electronics the outlets are all the same.
• The best way to get around is to use public buses
• To get between the islands you can take boat tours or use the water taxis or use the enter island air service Bahamasair
• for a great taste of local street food look for local vans that park near beaches or shopping areas and offer tasty plates of home-cooked cuisine.
• Tipping in the Bahamas is similar to that of the USA. Standard practice is to tip around 15% to 20%. Sometimes this is included in the bill already, so check first.
• The Bahamian dollar is on par with the US dollar and both are accepted throughout the islands

What are the requirements to live in the Bahamas?

For permanent residency, you'll need to purchase and maintain a residence in the Bahamas at a value of $500,000.00 or higher. Many international homeowners are not permanent residents and they come and go as a visitor would but do not stay more than three months at a time.  Check out the Bahamas government website for more info.

Is it livable and are we able to work in the Bahamas?

Yes but do note that the Bahamian government policy is to prioritize protecting the well-being and provide maximum employment opportunities for Bahamians. In a nutshell in order to maintain a work permit to work in the Bahamas an employer must demonstrate that there is no Bahamian ready and willing to fill the position.

In the Bahamas, ex-pats will find an excellent healthcare system with many modern hospitals that are well-equipped and have highly trained staff.  The Bahamas also has several local and international schools.

The Bahamas with its pristine beaches and incredible sea view is the place to be for those who want to enjoy a relaxed Bahamian lifestyle