Aqualina Bahamas for American Investors & U.S. Buyers
The complete U.S. investor guide to buying luxury beachfront condos at Aqualina on Cable Beach, Nassau — covering IRS reporting, capital gains, NIIT, estate tax, EPR residency, and how Bahamas real estate fits your American wealth plan. From a BREA-licensed agent with 24+ years of Bahamas market experience.
Aqualina Bahamas — Cable Beach luxury residences
Why U.S. Investors Choose Aqualina on Cable Beach
If you're a U.S. citizen or green card holder looking beyond Florida and traditional coastal markets, Aqualina on Cable Beach gives you direct beachfront living, strong USD income potential, and a pathway to permanent residency in a tax-advantaged Caribbean jurisdiction — all under three hours from Miami.
As someone who regularly works with American families, snowbirds, and entrepreneurs buying Bahamas property, I see Aqualina as a "second-home-plus" play — a beachfront condo your family uses that also generates rental income and supports long-term residency and estate planning conversations with your U.S. advisors.
| Factor | Bahamas (Aqualina) | U.S. Domestic |
|---|---|---|
| Country-Level Income Tax | 0% | Federal + state (0–13.3%) |
| Country-Level Capital Gains Tax | 0% | Federal 0–23.8% + state |
| Inheritance / Estate Tax (Local) | 0% | Federal 40% above $15M (2026) |
| Currency | BSD (pegged 1:1 to USD) | USD |
| Residency Pathway | EPR from $1M investment | N/A (already resident) |
| Property Tax Rate | 1–2% (tiered) | 0.5–2.5% (varies by county) |
| Flight from Miami | ~55 minutes | — |
| Legal System | English common law | Common law |
Note: U.S. citizens are taxed on worldwide income regardless of where property is located. Bahamas taxes shown are those levied by The Bahamas only.
Compare Aqualina with Other Bahamas Condos Americans Buy
IRS Reporting Requirements for U.S. Owners of Bahamas Property
As a U.S. citizen or resident, owning property in The Bahamas triggers specific federal reporting obligations. Missing these filings carries severe penalties — but they're straightforward when you understand what's required.
Three Forms U.S. Buyers Must Know
| Form | Filed With | Trigger | Deadline | Penalty (Non-Willful) |
|---|---|---|---|---|
| FinCEN 114 (FBAR) | FinCEN (not IRS) | Foreign bank accounts > $10,000 aggregate at any time | April 15 (auto ext. to Oct 15) | Up to $16,536/year |
| Form 8938 (FATCA) | IRS (with 1040) | Foreign assets > $50K year-end (single) or $100K (MFJ) | With tax return | $10,000 + $10K/30 days (max $50K) |
| Schedule E | IRS (with 1040) | Rental income from Bahamas property | With tax return | Standard accuracy penalties |
FBAR: When Does It Apply to Aqualina Owners?
If you open a Bahamas bank account to pay condo fees, receive rental income, or hold a security deposit — and the aggregate value of all your foreign accounts exceeds $10,000 at any point during the year — you must file FinCEN Form 114 electronically through the BSA E-Filing System. This is separate from your tax return and filed with the Financial Crimes Enforcement Network, not the IRS.
FATCA Form 8938: Higher Thresholds, Broader Scope
Form 8938 covers a wider range of foreign assets than the FBAR, including bank accounts plus foreign stocks, partnership interests, and certain insurance contracts. For U.S. residents, the reporting threshold is $50,000 at year-end or $75,000 at any time (single), doubling for married filing jointly. You may need to file both the FBAR and Form 8938 — compliance with one does not satisfy the other.
| Filing Status | FBAR Threshold | Form 8938 (Year-End) | Form 8938 (Any Time) |
|---|---|---|---|
| Single / MFS | $10,000 aggregate | $50,000 | $75,000 |
| Married Filing Jointly | $10,000 aggregate | $100,000 | $150,000 |
| Living Abroad — Single | $10,000 aggregate | $200,000 | $300,000 |
| Living Abroad — MFJ | $10,000 aggregate | $400,000 | $600,000 |
Sources: IRS.gov FBAR guidance; IRS.gov Summary of FATCA Reporting. FBAR threshold applies to all foreign financial accounts combined. Form 8938 thresholds confirmed unchanged for 2025 tax year (filing 2026).
Capital Gains, NIIT, Estate Tax & Depreciation for U.S. Investors
Capital Gains on Bahamas Property Sale
The Bahamas levies 0% capital gains tax. However, as a U.S. citizen, you'll pay federal capital gains tax on the profit from selling your Aqualina unit. Long-term gains (held over one year) are taxed at 0%, 15%, or 20% depending on your taxable income. Since The Bahamas charges no capital gains tax, there is no foreign tax credit to offset your U.S. liability.
| Rate | 2025 Single | 2025 MFJ | 2026 Single | 2026 MFJ |
|---|---|---|---|---|
| 0% | ≤ $48,350 | ≤ $96,700 | ≤ $49,450 | ≤ $98,900 |
| 15% | $48,351–$533,400 | $96,701–$600,050 | $49,451–$546,650 | $98,901–$613,700 |
| 20% | > $533,400 | > $600,050 | > $546,650 | > $613,700 |
Sources: IRS Topic 409; IRS Revenue Procedure 2025-32. Short-term gains (≤ 1 year) taxed as ordinary income at 10–37%.
Net Investment Income Tax (NIIT) — the 3.8% Surtax
High-income investors face an additional 3.8% NIIT on net investment income — including Bahamas rental income and capital gains — if your modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). These thresholds are not indexed for inflation, meaning more taxpayers are affected each year. At the top end, your effective federal rate on long-term Bahamas capital gains could reach 23.8% (20% + 3.8%).
Depreciation: 30-Year ADS for Foreign Property
U.S. owners of foreign rental property must use the Alternative Depreciation System (ADS) — straight-line over 30 years — instead of the standard 27.5-year MACRS used for domestic residential rentals. The depreciable basis is your purchase price plus closing costs, minus allocated land value. When you sell, depreciation recapture is taxed at a maximum 25% rate.
U.S. Estate Tax & Bahamas Property
Under the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, the federal estate tax exemption permanently increased to $15 million per individual ($30 million for married couples) effective January 1, 2026, indexed for inflation from 2027. The top rate remains 40%. Your Bahamas property is included in your worldwide gross estate.
| Year | Exemption (Individual) | Married (Combined) | Top Rate |
|---|---|---|---|
| 2025 | $13,990,000 | $27,980,000 | 40% |
| 2026 (OBBBA) | $15,000,000 | $30,000,000 | 40% |
| 2027+ | $15M+ (inflation-indexed) | $30M+ (inflation-indexed) | 40% |
Sources: IRS Revenue Procedure 2025-32; OBBBA signed July 4, 2025. No sunset provision. Step-up in basis at death remains intact.
Bahamas vs Florida: Why U.S. Investors Look Beyond the U.S.
As a U.S. citizen, you're taxed on worldwide income regardless of where you invest — so the comparison isn't primarily about tax arbitrage. It's about diversification, lifestyle, residency optionality, and what each jurisdiction offers beyond the asset itself.
| Factor | Bahamas (Aqualina) | Florida (Coastal Condo) |
|---|---|---|
| Country Income Tax | 0% | 0% state; federal applies |
| Country Capital Gains | 0% | 0% state; federal applies |
| Local Inheritance Tax | 0% | 0% state; federal applies |
| Property Tax | 1–2% (tiered) | ~1.0–1.5% (after homestead) |
| Currency Risk | None (BSD = USD 1:1) | None |
| Geographic Diversification | Outside U.S. jurisdiction | Within U.S. |
| Residency Pathway | EPR from $1M (citizenship path) | N/A (already U.S.) |
| Rental Demand | Year-round resort market | Seasonal + long-term |
| Hurricane Insurance | Required; available | Required; increasingly expensive |
| Flight from NE U.S. | 2.5–3.5 hours | 2.5–3 hours |
| Beachfront Entry | $2.65M+ (Aqualina) | $3M–$10M+ (Miami/Palm Beach) |
Closing Costs & Annual Holding Costs for U.S. Buyers
Buyer-Side Closing Costs
| Cost Item | Rate / Amount | On $2.65M Unit |
|---|---|---|
| VAT on Conveyance (buyer share) | 5% of purchase price | $132,500 |
| Legal Fees | ~2.5% + 10% VAT on fees | ~$72,875 |
| Title Insurance | 0.5–1% | $13,250–$26,500 |
| BIA Registration | Included in legal | — |
| Total (Buyer Side) | ~8–9% | $218,625–$231,875 |
VAT on conveyance is 10% total, split 50/50 between buyer and seller. All transactions in USD (BSD pegged 1:1). No currency conversion for U.S. buyers.
Annual Holding Costs
| Cost Item | Owner-Occupied | Non-Owner-Occupied |
|---|---|---|
| Real Property Tax | ~$16,250/yr | ~$48,000/yr |
| HOA / Condo Fees | $1.00–$1.25/sqft/mo | $1.00–$1.25/sqft/mo |
| Building Insurance | Included in HOA | Included in HOA |
| Contents Insurance | $2,000–$4,000 | $2,000–$4,000 |
| Business License (rental) | — | $250–$1,250 |
| Estimated Annual Total | ~$30,000–$40,000 | ~$55,000–$65,000 |
Real property tax on $2.65M: owner-occupied 0.625% on first $500K + 1% above. Non-owner-occupied: 1% on first $500K + 2% above.
Want a Full Cost Analysis for Your Budget?
Tell me your target range and whether you plan to live in the unit or rent it — I'll send a custom breakdown comparing Aqualina with Goldwynn and One Cable Beach.
Bahamas EPR Residency for American Families
Every Aqualina unit exceeds the $1,000,000 minimum investment threshold for Economic Permanent Residency (EPR), which increased from $750,000 on January 1, 2025. This gives your family a clean pathway to permanent residency in a tax-neutral Caribbean jurisdiction.
| EPR Requirement | Details |
|---|---|
| Minimum Investment | $1,000,000 USD (real estate or zero-coupon bonds) |
| Accelerated Processing | $1,500,000+ investment |
| Property Hold Period | Minimum 10 years |
| Annual Presence | 90 days per year |
| Family Inclusion | Spouse + dependent children (under 18) |
| Government Fee | $20,000 + $300 per endorsed family member |
| Processing Time | 6–18 months (interview within 2–3 months) |
| Path to Citizenship | Eligible after 10 years of permanent residency |
| Right to Work | Not included (separate work permit required) |
Sources: Bahamas Immigration Department; Immigration (Amendment) Act, 2021; Fragomen (Jan 2025 threshold increase).
8-Step Purchase Process for U.S. Buyers at Aqualina
Step 1 — Discovery Call with Glenn. We clarify your objectives: second home, rental income, residency, or combined strategy. I ask what you own in the U.S. and abroad, your realistic budget, and timeline.
Step 2 — Curated Shortlist. I send specific Aqualina units plus comparables at Goldwynn, One Cable Beach, and other beachfront condos — matched to your ticket size, view, and tax planning needs.
Step 3 — Virtual or In-Person Tour. Video walkthrough of available units or a coordinated Nassau visit to see properties, experience Cable Beach, and meet the legal team.
Step 4 — Offer & Negotiation. I present a written offer on your behalf and negotiate price, inclusions, and timeline directly with the seller or developer.
Step 5 — Bahamas Attorney Engagement. I coordinate with experienced Bahamas real estate attorneys for title search, due diligence, and contract review. Your U.S. attorney can review in parallel.
Step 6 — Wire Transfer & Closing. Funds are wired in USD from your U.S. bank to the Bahamas attorney's escrow account. I map payment schedules so your bank's compliance team and CPA are aligned.
Step 7 — Title Registration & BIA Filing. Your purchase is registered with the Bahamas Registrar General and the Bahamas Investment Authority. Title transfers to your name (or designated entity).
Step 8 — EPR Application (If Applicable). If pursuing residency, I coordinate your EPR application with the Department of Immigration — documentation prep, interview scheduling, and family endorsements.
Ready to Start Step 1?
Tell me where you live in the U.S., your target investment range, and whether you're focused on lifestyle, rental income, residency — or all three.
Why U.S. Buyers Work with Glenn Ferguson
I'm Glenn S. Ferguson — BREA-certified Bahamas REALTOR® (#1247), Bahamas MLS member, and Residency Consultant with 24+ years of experience across Nassau, Paradise Island, Cable Beach, Eleuthera, Exuma, Harbour Island, and the Abacos.
When you're investing from the United States, it's not just about finding a beautiful condo — it's about understanding how the purchase is structured, how rental income flows through your U.S. tax return, and how the property fits into your bigger wealth plan. I regularly work with American families, snowbirds, and entrepreneurs who need a Bahamas advisor who understands the U.S. side of the conversation.
Here's how I'd start if you were sitting in my office today: we'd map out your U.S. holdings, clarify whether you want a pure lifestyle condo, an Airbnb-plus-second-home strategy, or a residency-aligned purchase — then decide if Aqualina, Goldwynn, One Cable Beach, or another neighborhood is the right fit.
BREA-Certified · Bahamas MLS Access · Residency-Aware Guidance · Deep Experience with U.S. Clients
Get Aqualina Availability, Pricing & U.S. Investor Guidance
Tell me your U.S. base city, target investment range, and whether you're focused on lifestyle, rental income, residency — or all three. I'll reply personally within 24 hours.
Prefer to ask a question first?
FAQs: Aqualina & Buying Bahamas Real Estate as a U.S. Citizen
These are the questions I hear most from American investors considering Aqualina and similar Bahamas condos. If your situation involves business entities, family trusts, or multi-jurisdictional holdings, send me a note and we'll discuss privately.
Can U.S. citizens legally buy a condo at Aqualina in the Bahamas?
Yes. U.S. citizens and permanent residents can purchase freehold property at Aqualina and hold title in their own name, through a U.S. LLC, or via a trust structure. No special government permits are required for condo purchases — your investment is registered with the Bahamas Investment Authority. I coordinate the entire process from the United States, including attorney engagement, wire transfers, and title registration.
Can a foreigner buy a house in the Bahamas? →What IRS forms must I file after buying Bahamas property?
Three potential filings: FinCEN Form 114 (FBAR) if your Bahamas bank accounts exceed $10,000 aggregate at any time during the year — filed electronically with FinCEN by April 15, auto-extension to October 15. Form 8938 (FATCA) if specified foreign financial assets exceed $50,000 at year-end for single filers ($100,000 MFJ) — filed with your Form 1040. Schedule E to report rental income and deductible expenses. FBAR non-willful penalties reach $16,536 per year; willful violations jump to $165,353 or 50% of account balance.
Complete buying guide →How is Bahamas rental income taxed for U.S. citizens?
The Bahamas charges 0% income tax. However, U.S. citizens report worldwide income on their federal return. Bahamas rental income goes on Schedule E, taxed at your ordinary marginal rate (up to 37%). No foreign tax credit is available since The Bahamas levies no income tax. You can deduct management fees, insurance, condo fees, property tax, repairs, and depreciation (30-year ADS). High earners may also owe the 3.8% NIIT if modified AGI exceeds $200K (single) or $250K (MFJ).
Bahamas Airbnb profit landscape →What are U.S. capital gains implications when I sell my Aqualina unit?
The Bahamas charges 0% capital gains tax. In the U.S., long-term gains (over one year) are taxed at 0%, 15%, or 20% based on taxable income, plus potential 3.8% NIIT. No foreign tax credit is available. Short-term gains are taxed as ordinary income (up to 37%). Depreciation recapture at 25% maximum. All amounts in USD.
Bahamas real estate tax guide →What is the Net Investment Income Tax (NIIT) and how does it affect my Bahamas investment?
The NIIT is a 3.8% surtax on net investment income — rental income and capital gains — for taxpayers with modified AGI exceeding $200,000 (single) or $250,000 (MFJ). These thresholds are not adjusted for inflation. At the top end, your effective federal rate on Bahamas long-term capital gains could reach 23.8% (20% + 3.8%). On rental income, the NIIT applies on top of your ordinary marginal rate.
How does the 2026 U.S. estate tax exemption affect Bahamas property ownership?
The OBBBA (signed July 4, 2025) permanently increased the exemption to $15 million per individual ($30 million MFJ) effective January 1, 2026, with inflation indexing from 2027. The 40% top rate remains. Bahamas property is in your worldwide gross estate. Combined with The Bahamas' 0% inheritance tax, most American families buying at Aqualina face zero local estate tax and may be well under the U.S. threshold. Proper titling remains important.
Smart investor's residency guide →Can I do a Section 1031 exchange using my Bahamas condo?
No. Since the TCJA of 2017, Section 1031 like-kind exchanges apply only to U.S. real property. You cannot exchange U.S. property for a Bahamas condo tax-free, nor swap Bahamas for U.S. real estate. Foreign-to-foreign real property exchanges are also no longer permitted. Any sale of your Aqualina unit is a fully taxable event at applicable federal rates plus potential NIIT.
How does Bahamas compare to Florida for American real estate investors?
As a U.S. citizen taxed on worldwide income, the comparison is about diversification, not tax avoidance. Key Bahamas advantages: geographic diversification outside U.S. jurisdiction, lower beachfront entry pricing versus Miami/Palm Beach, EPR residency pathway ($1M+), 0% local income and capital gains tax, and a Commonwealth country with English common law. Both have no state income tax and strong rental demand. Flight times from major U.S. hubs are comparable.
Complete buying guide →Can I depreciate my Bahamas condo on my U.S. tax return?
Yes, using the ADS — straight-line over 30 years — instead of the 27.5-year MACRS for U.S. rentals. Your depreciable basis includes purchase price plus closing costs, minus allocated land value. When you sell, depreciation recapture is taxed at 25% maximum regardless of income bracket.
What are total closing costs for a U.S. buyer at Aqualina?
Approximately 8–9% above purchase price. On a $2.65M unit: VAT (your 50% share) ~$132,500, legal fees ~$72,875, title insurance $13,250–$26,500. All in USD — no currency conversion risk. I provide a detailed cost summary before you commit so your bank and CPA can review everything in advance.
Property tax calculator →Can buying at Aqualina help my family obtain Bahamas permanent residency?
Yes. Every Aqualina unit exceeds the $1,000,000 EPR minimum (increased from $750,000 on January 1, 2025). Units above $1.5M qualify for accelerated processing. EPR covers your spouse and dependent children, requires 10-year hold and 90 days annual presence, grants the right to live and bank in The Bahamas indefinitely. Government fee: $20,000 + $300 per family member. I handle both the property purchase and EPR application.
Residency calculator →How do I start the Aqualina purchase process from the United States?
WhatsApp or call Glenn Ferguson at +1-242-395-8495. BREA licensed #1247, Bahamas MLS member, Residency Consultant with 24+ years experience. I provide Aqualina availability, pricing, and floor plans; coordinate your Bahamas attorney; advise on wire transfer timing; and manage the entire process from offer through closing and EPR. Start with a 15-minute call: What do you own now? What are you solving for? What's your budget and timing?
Ask Glenn your first question →
Ready to Explore Aqualina as Part of Your U.S. Wealth & Lifestyle Plan?
If you were sitting in my office today, I'd start with three questions: What do you already own in the U.S. and abroad? What are you trying to solve for — lifestyle, residency, or wealth diversification? And how much capital are you comfortable allocating to a Bahamas property in the next 12–24 months?
From there, we'd build a clear shortlist — Aqualina, Goldwynn, One Cable Beach, Baha Mar, or an off-market opportunity — and map out a practical, compliant path from researching online to keys in hand.
Still early in your research? Start with the Bahamas Real Estate Buyer's Toolkit, then send me a message with "USA" in the subject so I tailor my reply for your situation.
Your Next Step
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Verified Sources
- IRS.gov — Report of Foreign Bank and Financial Accounts (FBAR), FinCEN Form 114
- IRS.gov — Summary of FATCA Reporting for U.S. Taxpayers; Form 8938 thresholds
- IRS.gov — Topic No. 409: Capital Gains and Losses (2025/2026 rates)
- IRS Revenue Procedure 2025-32 — 2026 inflation-adjusted tax brackets and capital gains thresholds
- One Big Beautiful Bill Act (OBBBA), signed July 4, 2025 — $15M estate tax exemption effective Jan 1, 2026
- IRS.gov — Net Investment Income Tax (3.8% NIIT), $200K single / $250K MFJ thresholds
- Tax Cuts and Jobs Act of 2017 — Section 1031 limited to U.S. real property; ADS 30-year depreciation for foreign residential
- Bahamas Immigration Department — Economic Permanent Residency ($1M minimum, Jan 2025)
- Bahamas Immigration (Amendment) Act, 2021 — EPR framework, 10-year hold, 90-day presence
- Fragomen Advisory — EPR threshold increase from $750K to $1M effective January 1, 2025
- Bahamas Real Property Tax Act — Owner-occupied vs non-owner-occupied rates
- FinCEN.gov — BSA E-Filing System; FBAR penalties ($16,536 non-willful; $165,353 willful)
- IRS.gov — Comparison of Form 8938 and FBAR Requirements
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