Bahamas Property Tax Calculator 2026 | Rates, VAT & Closing Costs | Glenn Ferguson
Glenn Ferguson | BREA-Licensed Real Estate Agent | Bahamas MLS Member | Residency Consultant | 24+ Years | WhatsApp: (242) 395-8495

Bahamas Property Tax Calculator

Instantly calculate annual real property tax, transfer VAT, and total closing costs for any Bahamas property. Updated for 2026 rates.

By Glenn Ferguson ◆ Updated

Glenn Ferguson — Licensed Bahamas Real Estate Agent
Glenn Ferguson
Licensed Bahamas Real Estate Agent (BREA) ◆ Bahamas MLS Member ◆ Residency Consultant ◆ 24+ Years in Nassau
BREA Licensed Bahamas MLS

Quick Answer

Bahamas annual property tax ranges from $0 to $150,000/year maximum, based on assessed value and property type. Owner-occupied homes get the lowest rates — the first $300,000 is completely exempt. Foreign-owned and commercial properties pay 0.75%–1.5% depending on value tier. At purchase, foreign buyers also pay a one-time 10% transfer VAT, typically split 50/50 with the seller. There is no income tax, no capital gains tax, no inheritance tax, and no rental income tax. Use the calculator below for your exact numbers.

Bahamas Property Tax Calculator

Enter your property details for instant annual tax and closing cost estimates

Your Bahamas Property Tax Estimate

Annual Property Tax
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Monthly Equivalent
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Transfer VAT (Your Share)
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Effective Annual Rate
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Annual Property Tax Breakdown

Estimated Total Closing Costs (Buyer's Side)

Estimates based on 2026 published rates. Actual DIR assessments may vary. For a personalized cost analysis on a specific property, ask Glenn or WhatsApp (242) 395-8495.

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What You Need to Know Before Buying Property in The Bahamas

Can a US citizen (or any foreigner) buy property in The Bahamas?

Yes. Foreign buyers can purchase residential property up to 5 acres in The Bahamas without prior government approval. The purchase must be registered with the Bahamas Investment Authority (BIA) and the International Persons Landholding Act. Properties over 5 acres, or undeveloped land intended for commercial use, require a permit from the Investment Board. Foreign buyers enjoy the same property rights as Bahamian citizens — there are no ownership restrictions on residential real estate.

Is rental income taxed in The Bahamas?

No. There is no income tax on rental income in The Bahamas. However, if you rent out your property, you must obtain and annually renew a business license (fees typically range from $250–$1,250 depending on revenue). Properties enrolled in government-approved hotel rental programs (like Atlantis or Baha Mar rental pools) are subject to a separate Condo-Hotel Tax — see below. The Bahamas dollar is pegged 1:1 to the US dollar, so there is no currency risk for American investors.

Can I get permanent residency by buying property?

Property valued at $250,000 or more qualifies you to apply for annual residency. Property valued at $750,000 or more qualifies you to apply for Economic Permanent Residency, with expedited processing for properties valued at $1,500,000+. Residency allows you to qualify for the lower owner-occupied property tax rates, potentially saving thousands annually. Glenn handles the residency application process alongside property purchases — learn more about Bahamas residency.

Can I repatriate my money when I sell?

Yes. As long as you register the original purchase with the Exchange Control Department of the Central Bank of The Bahamas at the time of purchase, you can repatriate the entire proceeds including any profits when you sell. This is a standard part of the closing process that Glenn handles for all international buyer clients.

Do I need a mortgage or can I pay cash?

Both options are available. Cash purchases are common for international buyers and simplify the process. If you need financing, several banks in The Bahamas offer mortgages to foreign buyers — including RBC Royal Bank, CIBC FirstCaribbean, and Scotiabank — typically requiring 30–50% down payment. Note that there is a 1% stamp duty on mortgages payable by the borrower. See the full mortgage guide.

2026 Bahamas Real Property Tax Rates

All rates below are sourced from the Department of Inland Revenue (DIR) and the Real Property Tax Act as amended through July 2023. The Bahamian dollar (BSD) is pegged 1:1 to the US dollar.

Owner-Occupied (Primary Residence)

Applies when the owner occupies the property exclusively as a dwelling, on a permanent or seasonal basis (minimum ~90 days/year). Only one property per person or married couple qualifies.

Assessed ValueRateAnnual Tax
First $300,000Exempt$0
$300,001 – $500,0000.625%Up to $1,250
Over $500,0001.0%Varies (capped at $150,000)

Residential (Non-Owner-Occupied, 1–4 Units)

Applies to residential dwellings used solely as a dwelling but not occupied by the owner — e.g., rental duplexes, triplexes, fourplexes.

Assessed ValueRateAnnual Tax
Up to $75,000Flat fee$300
Above $75,0000.625%Varies (capped at $150,000)

Foreign-Owned / Commercial / 5+ Residential Units

Applies to commercial properties, foreign-owned rentals not occupied by the owner, and any property with more than four residential units.

Assessed ValueRateAnnual Tax
First $500,0000.75%Up to $3,750
$500,001 – $2,000,0001.0%Up to $15,000
Over $2,000,0001.5%Varies
Any valueCapped$150,000 maximum

Vacant Land

OwnerAssessed ValueRate
Bahamian CitizenAny valueExempt ($0)
Foreign-OwnedFirst $7,000$100 flat fee
Above $7,0002.0% of balance

Property Transfer VAT (One-Time, Paid at Purchase)

This tax replaced the old stamp duty system in 2022. It is usually split 50/50 between buyer and seller, though this is negotiable in the sales agreement.

Buyer TypeProperty ValueVAT Rate
Bahamian CitizenUnder $100,0002.5%
$100,001 – $300,0004.0%
$300,001 – $500,0006.0%
$500,001 – $700,0008.0%
$700,001 – $1,000,0009.0%
Over $1,000,00010.0%
Foreign BuyerAll values10.0% flat
First-Time Bahamian$300,000 – $500,0004.0% (reduced)

Pensioner's Discount

Bahamian citizens aged 65+ with an NIB Senior Citizen's Card receive a 50% discount on the balance of real property tax due on their dwelling home after the $300,000 owner-occupied exemption is applied. This discount applies only to one property — the pensioner's primary residence.

What Does Ownership Actually Cost? 5-Year Examples

Foreign buyers often focus on the purchase price and transfer VAT, but the total cost of ownership is what matters. Here are three common scenarios for a foreign buyer:

$500K Condo
Cable Beach		$1M House
Nassau		$3M Estate
Paradise Island
Transfer VAT (buyer's 50%)$25,000$50,000$150,000
Legal fees (~2%)$10,000$20,000$60,000
Year 1 closing costs~$37,500~$72,500~$212,500
Annual property tax$3,750$8,750$28,750
5-year tax total$18,750$43,750$143,750
5-year all-in cost~$56,250~$116,250~$356,250

Excludes insurance, HOA/strata fees, maintenance, and property management. Annual tax shown at foreign-owned rates; owner-occupied rates are lower. See the complete annual cost guide for full figures by neighborhood.

Property Tax Exemptions in The Bahamas

The following properties are exempt from annual real property tax per the Real Property Tax Act:

Owner-occupied homes on the first $300,000 of assessed value. Unimproved (vacant) land owned by Bahamian citizens. Property in the Family Islands owned by Bahamians. All property located in Freeport, Grand Bahama (under the Hawksbill Creek Agreement). Crown land (except Crown land held under lease). Property used exclusively for religious worship. School buildings including gardens and playing fields. Property owned by foreign governments for consular offices or residences. Property used exclusively for charitable or public service purposes where no profit is derived. Buildings registered on the National Register of Historical Buildings (exemption must be applied for; not automatic).

All exemptions must be applied for through the Department of Inland Revenue — they are never granted automatically.

Condo-Hotel Tax (Since January 2023)

Condominiums, homes, villas, and townhouses registered in a government-approved hotel rental program (such as the Atlantis or Baha Mar rental pools) are subject to a separate annual Condo-Hotel Tax. This tax is set at 75% of the residential property rate (currently 0.625% of market value), with a ceiling of $150,000 per year. If the hotel program operator does not generate sufficient tax revenue from rentals to cover the amount, the operator and property owner share joint liability for the difference.

This is a critical consideration for buyers looking at resort-branded residences. Glenn can walk you through the math to determine whether projected rental income justifies the additional tax exposure for any specific property.

Glenn Ferguson
Want a complete cost breakdown for a specific property? Glenn provides personalized tax and closing cost estimates — free for all buyer clients.
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Bahamas Property Tax vs. US, UK & Canada

The Bahamas' zero-income-tax environment is one of the biggest financial advantages for property owners relocating from high-tax jurisdictions. Here's how the total tax picture compares for a $2,000,000 home:

Tax TypeBahamasFlorida (US)New York (US)London (UK)
Annual Property Tax$18,750*$34,000$42,000$6,200**
Income Tax0%0% state / 37% fed12.7% + 37% fed45%
Capital Gains Tax0%20% federal20% + 8.82%24%
Inheritance Tax0%0% state / 40% fed16% + 40% fed40%
Rental Income Tax0%37% federal37% + 12.7%45%
Property Tax Cap$150,000/yrNo capNo capNo cap

*Foreign-owned rate shown ($500K at 0.75% + $1.5M at 1%). Owner-occupied rate is lower at approximately $16,250. **UK Council Tax band H shown. UK property taxation also includes Stamp Duty Land Tax at purchase, which can reach 17% for non-UK residents on high-value properties.

The Tax Advantage in Practice

A high-income individual earning $500,000/year who relocates from New York to Nassau saves approximately $200,000–$250,000 per year in combined income and capital gains taxes alone — before accounting for lower property tax and zero inheritance tax. For many clients, the Bahamas property purchase effectively pays for itself through tax savings within 3–5 years.

How to Pay Bahamas Property Tax

When: Annual property tax is billed in the fourth quarter (typically October–December) for the following tax year. Pay in full by March 31st to receive a 10% discount. Tax must be paid by December 31st — a 5% surcharge is applied on January 1st for any unpaid balance.

Where: Department of Inland Revenue, Shops at Carmichael Plaza, Carmichael Road, Nassau. Also payable at any Royal Bank of Canada branch with your property assessment number.

Online: The Department of Inland Revenue offers an online payment portal at payment.revenue.gov.bs/rpt for registered property owners. Credit cards, cheques, and wire transfers are accepted.

What you need: Your property assessment number, found on your previous year's tax bill or assessment certificate. If you can't locate it, contact the DIR at (242) 225-7280 (toll free) or email propertytaxenquiries@bahamas.gov.bs.

Absentee Owner Tip

If you live overseas, your property manager should handle annual tax payments on your behalf. Glenn connects all buyer clients with trusted property management at closing and ensures tax compliance is included in the management agreement. Penalties accrue with non-payment, and outstanding tax creates a first charge on real property — meaning the government's claim takes priority over other liens. Don't leave this to chance.

Frequently Asked Questions: Bahamas Property Tax

How much is property tax on a $1 million home in The Bahamas?
For an owner-occupied $1M home: approximately $6,250/year (first $300K exempt, next $200K at 0.625% = $1,250, remaining $500K at 1% = $5,000). For a foreign-owned non-resident property: approximately $8,750/year (first $500K at 0.75% = $3,750 + remaining $500K at 1% = $5,000). Both are far below comparable US property tax rates — a $1M home in South Florida averages about $17,000/year in property tax alone.
Is Bahamas property tax higher for foreigners?
Annual rates are higher for foreign-owned properties not used as a primary residence: 0.75% on first $500K, 1% on $500K–$2M, and 1.5% above $2M, versus owner-occupied rates that start with a $300K exemption. However, foreign buyers who establish Bahamas residency and occupy the property as their primary dwelling qualify for the same lower owner-occupied rates as Bahamians. The $150,000 annual cap applies regardless of nationality.
What is the 10% VAT on Bahamas property purchases?
Since July 2022, all property transfers are subject to VAT instead of the old stamp duty. Foreign buyers pay a flat 10% regardless of property value. Bahamian citizens benefit from graduated rates (2.5%–10% depending on value). The VAT is typically split 50/50 between buyer and seller, though this is negotiable. On a $1M purchase, the foreign buyer's share is usually $50,000. First-time Bahamian buyers get a reduced 4% rate on properties between $300K–$500K and may be eligible for a partial VAT refund if they complete construction within 18 months.
Can I reduce my Bahamas property tax?
Three strategies: (1) Establish residency and occupy the property to qualify for lower owner-occupied rates with the $300K exemption — this is the single biggest savings. (2) Pay by March 31st for the 10% early payment discount. (3) Challenge over-assessment — ensure your property is assessed at accurate market value through the Department of Inland Revenue. Glenn assists clients with all three strategies as part of the buying process.
Can a US citizen buy property in The Bahamas?
Yes. US citizens — and all foreign nationals — can purchase residential property in The Bahamas up to 5 acres without prior government approval. The purchase must be registered with the Bahamas Investment Authority under the International Persons Landholding Act. Commercial properties and parcels over 5 acres require an Investment Board permit. There are no restrictions on foreign ownership of residential real estate, and foreign buyers have the same property rights as Bahamian citizens.
Are there any islands exempt from property tax?
Only Freeport (Grand Bahama) has broad property tax exemptions under the Hawksbill Creek Agreement. All other Bahamas islands — including Nassau, Paradise Island, Exuma, Eleuthera, Harbour Island, and Abaco — are subject to standard property tax rates. Important distinction: Bahamian citizens do not currently pay property tax on vacant land or property situated in the Family Islands, but foreign owners of Family Island property do pay.
What are total closing costs for a foreign buyer?
Budget 7–10% of purchase price for total buyer-side closing costs: your share of transfer VAT (typically 5% of price), legal fees (1.5–2.5%), and smaller items like appraisal, title search, property tax assessment number registration, and stamp duty on mortgage if financing (1%). On a $1M property, total buyer-side costs are approximately $70,000–$100,000. The seller separately pays their half of the VAT plus real estate commission (6% on improved property, 10% on vacant land). Glenn provides detailed closing cost estimates for every property under consideration.
Is rental income taxed in The Bahamas?
No. There is no income tax of any kind in The Bahamas, including on rental income. However, if you rent your property, you must obtain and annually renew a business license (fees range from $250–$1,250 depending on rental revenue). Owner-occupiers who rent part of their home to visitors must also register with the Hotel Licensing Department of the Ministry of Tourism. VAT at 10% applies on short-term vacation rental income above the registration threshold.
Can I get residency by buying property in The Bahamas?
Yes. Property valued at $250,000+ qualifies you to apply for an annual Homeowner's Residence Card (allows entry for you, spouse, and minor children). Property valued at $750,000+ qualifies for Economic Permanent Residency. Property valued at $1,500,000+ receives expedited consideration. Residency gives you access to owner-occupied property tax rates, potentially saving thousands per year. Full Bahamas residency guide →
Do I pay property tax on vacant land in The Bahamas?
Depends on nationality. Bahamian citizens are exempt from property tax on unimproved (vacant) land throughout The Bahamas. Foreign owners pay $100 flat on the first $7,000 of assessed value, plus 2% on the balance above $7,000. Example: vacant land assessed at $200,000 would cost $100 + ($193,000 × 2%) = $3,960/year. All property in Freeport is exempt under the Hawksbill Creek Agreement regardless of owner nationality.
When is Bahamas property tax due and what happens if I pay late?
Property tax is billed in Q4 (typically October–December) for the following year. Pay in full by March 31st to receive a 10% discount. Tax must be paid by December 31st — otherwise a 5% surcharge is applied on January 1st. Continued non-payment results in a government lien on the property, and after due process the government can sell the property to recover unpaid taxes. Outstanding real property tax creates a "first charge" on the property, taking priority over mortgages and other claims. Payment is accepted at the Department of Inland Revenue (Carmichael Road), any Royal Bank of Canada branch, or online at payment.revenue.gov.bs/rpt.
Is there VAT on top of property tax?
No. VAT is not added to annual real property tax — it is already a government tax. However, VAT at 10% is charged separately on real estate services including legal fees, appraisals, agent commissions, and property insurance. The property transfer VAT (2.5%–10%) is a one-time tax paid at purchase and is separate from the recurring annual property tax.
Can I appeal my property tax assessment?
Yes. If you believe the Department of Inland Revenue has over-valued your property, you can challenge the assessment. The DIR reassesses properties periodically (typically every 5–10 years), but significant renovations, hurricane damage, or market changes can trigger earlier reassessment. You can also proactively request a reassessment if market conditions have reduced your property's value. Working with a local agent like Glenn who understands comparable sales data is useful for supporting an appeal.
Do Bahamians pay different property tax than foreigners?
The annual rates are based on property use, not nationality directly. A foreign buyer who lives in the property as their primary residence qualifies for the same owner-occupied rates as a Bahamian. The key differences: Bahamians are exempt from tax on vacant land and Family Island properties. Bahamian pensioners aged 65+ receive a 50% discount on the balance after the $300K exemption. The transfer VAT at purchase is different — Bahamians pay graduated rates (2.5%–10%) while foreign buyers pay a flat 10%.
Can I repatriate sale proceeds when I sell my Bahamas property?
Yes. You can repatriate the entire proceeds including profits, provided you registered the original purchase with the Exchange Control Department of the Central Bank of The Bahamas at the time of purchase. This registration is standard practice and Glenn ensures it is completed as part of every closing for international buyers. There is no capital gains tax on the sale.

Ready to Buy Property in The Bahamas?

24+ years helping international buyers find the right property, navigate taxes and residency, and close with confidence. Free tax estimates and personalized cost analysis for any property.

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Related Bahamas Real Estate Guides

Complete Guide to Bahamas Real Estate Taxes

Annual Cost of Ownership by Neighborhood

Mortgage Guide for Foreign Buyers

Bahamas Residency by Investment Calculator

Rental Income Guide by Neighborhood

Complete Buying Guide for The Bahamas

Nassau Neighborhoods Guide

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