Can an American buy property in The Bahamas?

Yes. Americans are the largest group of foreign buyers. The Bahamian dollar is pegged 1:1 to the US dollar. US citizens must still report worldwide income to the IRS.

Do I need a permit to buy property in The Bahamas as a foreigner?

For owner-occupied residential — no permit needed. BIA permit required for: undeveloped land 5+ acres, rental-only investment, or commercial property.

How much does it cost to buy a house in The Bahamas?

Total buyer-side closing costs approximately 7-8% plus first-year insurance (2-4%). Largest cost: 5% VAT on conveyance (buyer's half of 10%). Legal fees 1-2.5% plus 10% VAT.

What are the property taxes in The Bahamas for foreign owners?

Owner-occupied: first $300,000 exempt, 0.625% on $300K-$500K, 1% above $500K. Non-owner-occupied: 1% on first $500K, 2% above $500K, capped at $150,000/year (Real Property Tax Act 2023). 10% early-payment discount. Freeport exempt.

Does buying property qualify me for Bahamas permanent residency?

Any property owner can apply for Homeowner Resident Card ($500/year). Economic Permanent Residency requires $1,000,000+ (since January 2025), 10-year hold, 90+ days annual presence. $1.5M+ receives accelerated processing.

Do I need hurricane insurance in The Bahamas?

Not legally required but essential. Comprehensive policies cost 2-4% of insured value annually. Newer construction (post-2019 code) costs 30-50% less to insure.

Can foreigners get a mortgage in The Bahamas?

Yes. RBC Royal Bank, CIBC FirstCaribbean, Scotiabank offer mortgages. 30-50% down, 6-8% rates, 15-25 years. About 80% of foreign buyers purchase cash.

Can I rent out my Bahamas property?

Yes with licensing. Short-term (<45 days) needs Hotel Licence + 10% VAT. Long-term (45+) VAT-exempt. Some HOAs restrict short-term rentals.

Is The Bahamas safe for foreign property buyers?

Yes. Stable democracy since 1973, English common law, constitutionally protected property rights. Foreign owners have identical legal protections to Bahamian citizens.

What is the cheapest way to buy in The Bahamas?

Eastern Nassau condos from ~$180K. Grand Bahama homes from ~$150K. Family Island lots from ~$100K. Bank foreclosures 20-40% below market.

Can I get Bahamas citizenship through property?

Not directly. After 10 years of permanent residency (including 6 years physical), apply for naturalization. Not guaranteed.

What is the International Persons Landholding Act?

The IPLA 1993 governs foreign ownership. Owner-occupied purchases need only register after closing. Permits required for 5+ acre undeveloped land, non-residential, and commercial.

What happens to my property if I pass away?

No inheritance tax. Property passes per your will. Have a separate Bahamian will prepared at closing.

Should I buy through a company (IBC)?

IBCs pay flat 10% VAT, cannot qualify for owner-occupied tax rates, and cost $1K-$2K/year. Useful for privacy. Discuss with attorney.

Do I need to live in The Bahamas to own property?

No. No residency requirement to own. The 90-day rule applies only for EPR holders.

Who should I call to buy as a foreigner?

Glenn Ferguson at +1-242-395-8495. BREA #1247, Bahamas MLS, residency consultant, 24+ years. Property search, closing, and EPR filing under one roof.

Can a Foreigner Buy a House in The Bahamas? (2026) | Complete Guide

Goldwynn Bahamas luxury penthouses — foreign buyers welcome

What Rights Do Foreigners Have When Buying Property in The Bahamas?

Foreign nationals enjoy the same property ownership rights as Bahamian citizens. The Bahamas operates under English common law. You receive full freehold title — own the property and land outright with no expiration. Owner-occupied residential purchases require no government permit — only registration after closing.

Freehold Title

Own property and land outright — no leasehold, no expiration. Permanent ownership that can be sold, leased, inherited, or transferred.

Zero Income Tax

No income tax, no capital gains, no inheritance tax. Rental income is not taxed by the Bahamian government. Permanent structural feature.

Rental Income

Short-term and long-term rentals permitted. Hotel Licence required for stays under 45 days. 10% VAT on short-term rental income.

English Common Law

Same legal framework as UK, Canada, Australia. Attorney provides Opinion on Title. Title insurance also available.

BSD Pegged to USD

Zero currency risk for American buyers. Pegged 1:1 to US dollar. Both currencies accepted everywhere.

Residency Pathway

$1M+ qualifies for Economic Permanent Residency. Live and bank in The Bahamas indefinitely. Family included.

The International Persons Landholding Act 1993 governs foreign ownership. Owner-occupied purchases need only register after closing — no prior permit. BIA permit required for: (1) undeveloped land 5+ acres, (2) rental-only investment, or (3) commercial property.

How Does a Foreigner Buy a House in The Bahamas?

Typical purchase: 60-90 days. Glenn manages every step. Cash: 45-60 days. Mortgage: 90-120 days.

Engage Glenn Ferguson

BREA #1247, MLS member, residency consultant. Full MLS + off-market access, EPR filing — all under one roof.

Define Criteria & Budget

Island, property type, budget, goal. Glenn builds a matched shortlist including off-market options.

Make an Offer

Written offer with 10% deposit in escrow. Glenn negotiates using comparable closed sale prices and $/sqft data.

Hire a Bahamian Attorney

Title search (30+ years), conveyance documents, legal closing. Glenn recommends trusted attorneys.

Register Under IPLA

Standard registration — attorney handles. BIA approval only for 5+ acre undeveloped land, rental-only, or commercial.

Close & Transfer Title

Pay VAT, legal fees, remaining balance. Title transfers as freehold. Register with Central Bank Exchange Control. July 2025: VAT invoice from DIR required before executing conveyance.

Apply for Residency ($1M+)

Glenn files EPR — no separate firm needed. $1M minimum since Jan 2025. Fee: $20,000 + $300/dependent.

Glenn's Insider Tip:

"I give every buyer a detailed closing cost estimate before they make an offer. No surprises at closing. I also negotiate VAT splits — not every deal has to be 50/50."

Ready to start?

Get Your Property Shortlist WhatsApp Glenn

What Does It Cost a Foreigner to Buy in The Bahamas?

Total buyer-side: ~7-8% plus first-year insurance. Use the Closing Cost Calculator.

Cost Item	Buyer Pays	Notes
VAT on Conveyance	5%	10% total; split 50/50 (negotiable)
Legal fees	1-2.5%	Title search, conveyance, closing
VAT on fees	10% of fees	Applied to legal fees, commissions
Title insurance	0.2-1%	Optional. Attorney Opinion on Title is standard
Inspection	$500-$1,500	Essential — "as inspected" sales
Insurance (yr 1)	2-4%	Hurricane + flood. Largest ongoing cost
Total at Closing	~10-13%	Includes insurance

Calculate Your Closing Costs

How Does VAT Work on Bahamas Property?

VAT replaced former stamp duty. One-time tax at closing — not annual.

Buyer Type	Rate	Details
Foreign buyers	Flat 10%	Full price or appraised value (higher)
Bahamian citizens	2.5-10%	Graduated by value
IBC / corporate	Flat 10%	Same as foreign. No graduated benefit

Standard: split 50/50 — buyer pays 5%. Negotiable. July 2025: Provisional VAT invoice from DIR required before executing conveyance.

Annual Property Taxes in The Bahamas

Use the Property Tax Calculator for your estimate.

Owner-Occupied

Value	Rate
First $300,000	Exempt
$300,001-$500,000	0.625%
Above $500,000	1%

Non-Owner-Occupied (Vacation, Rental, Investment)

Value	Rate
First $500,000	1%
Above $500,000	2%
Cap: $150,000/year. Source: Real Property Tax Act 2023.

Example: $1.5M vacation home = $5,000 (first $500K at 1%) + $20,000 (next $1M at 2%) = $25,000/year.

Discounts: 10% early-payment if paid by March 31. Seniors 65+: 50% discount. Freeport exempt (Hawksbill Creek Agreement).

Calculate Your Property Tax

Tax Advantage: Bahamas vs Caribbean

0%Income Tax

0%Capital Gains

0%Inheritance

0%Rental Tax

Factor	Bahamas	TCI	BVI	Cayman
Buyer Transfer Tax	5% (buyer share)	6.5-10%	12% (non-Belonger)	7.5-10%
Income Tax	0%	0%	0%	0%
Residency via Property	Yes ($1M+)	Yes ($1M+)	Limited	Yes ($1.2M+)
Annual Property Tax	0.625-2%	None	Nominal	None

Interactive 5-Jurisdiction Tax Comparison

US Tax Obligations

Bahamas: zero income/capital gains/inheritance tax. But US citizens must report worldwide income to the IRS: rental (Schedule E), capital gains (Schedule D), foreign accounts (FBAR), assets (FATCA). No US-Bahamas tax treaty. FEIE $130,000 for 2025.

Bahamas Residency Through Property

$1,000,000+ = Economic Permanent Residency. Threshold raised from $750K on Jan 1, 2025.

Level	Status	Fee	Details
Any value	Homeowner Resident Card	$500/yr	Facilitates entry. Renewable. Not full residency.
$1,000,000+	Economic Permanent Residency	$20,000	10-year hold, 90 days/yr. No work rights (standard).
$1,500,000+	Accelerated EPR	$20K-$25K	~3-4 weeks processing.

Check Eligibility Residency Quiz Calculate Costs

Citizenship Pathway

Not direct. After 10 years EPR (including 6 years physical + 12 months preceding), apply for naturalization. Not guaranteed.

Hurricane Insurance

Coverage	Cost	Notes
Comprehensive	2-4%/yr	Higher for older/beachfront
Hurricane deductible	2-5%	Per event
Post-2019 construction	30-50% less	Updated codes = lower premiums

Glenn's Insider Tip:

"I always get insurance quotes before a buyer commits. A $1M older beachfront home might cost $35K/year to insure, while a newer $1M condo costs $18K. That $17K difference should influence your decision."

Financing for Foreign Buyers

30-50% down, 6-8% rates, 15-25 years. RBC, CIBC FirstCaribbean, Scotiabank. 80% buy cash.

Mortgage Pre-Qualification Calculator

Rental Income

Type	Licence	VAT	Returns
Short-term (<45d)	Hotel Licence	10%	$150-$750+/night
Long-term (45+d)	Business licence	Exempt	$1,200-$5,000+/mo

Calculate Rental ROI

Best Areas for Foreign Buyers

Most Liquid

Nassau & Paradise Island

Ocean Club, Lyford Cay, Albany, Cable Beach, Palm Cay. $300K-$40M+. 70% of transactions.

Highest Rates

Exuma

Crystal waters, private islands. ~$750/night. Scarcity pricing.

Fastest Growth

Eleuthera & Harbour Island

Pink sand beaches, boutique luxury. $450-$800/night.

Branded Residences

Cable Beach

Goldwynn, One Cable Beach. Newest construction. $700K-$15M+.

Value Entry

Grand Bahama

55mi from Florida. Lowest prices. No property tax (Hawksbill Creek).

AI Property Finder — Match Your Criteria

Safety & Due Diligence

Stable democracy since 1973, English common law, constitutionally protected property rights.

Check	Why
Title search (30+ yrs)	Clear ownership chain
Property survey	Boundaries match deed
Generational land check	Avoid unclear multi-generational claims
Outstanding tax check	Required since Oct 2022
HOA review	Financials, restrictions, assessments
Inspection	Structure, roof, termites, mould
Insurance quote	Get before committing
Central Bank registration	Protects fund repatriation

Why Glenn Ferguson?

BREA #1247 | Bahamas MLS | Residency Consultant | 24+ Years | All Islands

Off-market access. Many properties sell before MLS listing.

Comparable closed-sale data. Actual prices, $/sqft, days-on-market.

Full-service. Search, HOA review, cost estimates, attorney coordination, closing, insurance, EPR filing.

Rental projections. Property-specific pro-formas with rates, occupancy, management fees, net yield.

Glenn Ferguson — Expert Quote:

"In 24 years helping foreign buyers, the most expensive mistake I see is not getting a comprehensive closing cost estimate upfront. The 5% VAT surprises people, the insurance surprises people, and the non-owner property tax rate surprises people. I give every client a line-item breakdown before they make an offer — because knowing the real number is the difference between a smart investment and buyer's remorse."

Glenn Ferguson — BREA Licensed Real Estate Agent #1247 / Bahamas MLS Member / Residency Consultant / 24+ Years All Islands

Ready? Glenn responds personally to every inquiry.

Get Your Shortlist WhatsApp Glenn Call +1-242-395-8495

Foreign Buyers FAQ

Can a foreigner buy a house in The Bahamas?

Yes. Same freehold rights as citizens. No permit for owner-occupied. 60-90 days. Call Glenn.

Can an American buy property?

Yes. Largest foreign buyer group. BSD pegged 1:1 to USD. Must report worldwide income to IRS.

Do I need a permit?

Owner-occupied: no. BIA permit for: 5+ acre undeveloped land, rental-only, or commercial.

How much does it cost?

~7-8% + insurance (2-4%). Largest: 5% VAT. $1M home = ~$102K at closing. Calculator.

What is the VAT for foreign buyers?

Flat 10%, split 50/50 (buyer pays 5%). Negotiable. Bahamian citizens get graduated rates.

What are annual property taxes?

Owner-occ: $300K exempt, 0.625-1%. Non-owner: 1%/2%, cap $150K/yr (RPT Act 2023). Freeport exempt. Calculator.

Do I need hurricane insurance?

Essential. 2-4%/yr. Post-2019 construction: 30-50% cheaper. Mandatory if financing.

Can foreigners get a mortgage?

Yes. 30-50% down, 6-8%, 15-25yr. RBC, CIBC, Scotiabank. 80% buy cash. Calculator.

Can I rent on Airbnb?

Yes with Hotel Licence + 10% VAT on short-term. Long-term (45+d) VAT-exempt.

Does property qualify me for residency?

HORC: any value ($500/yr). EPR: $1M+ (Jan 2025), 10yr hold, 90d/yr. $1.5M+ = accelerated. Check Eligibility.

Can I get citizenship?

Not directly. After 10yr EPR (6yr physical + 12mo preceding), apply for naturalization. Not guaranteed.

Do US citizens pay taxes on Bahamas property?

Bahamas: 0% on all. US: must report worldwide income. No US-Bahamas treaty. Tax Comparison.

Is it safe to buy?

Yes. Stable democracy (1973), English common law, constitutionally protected property rights. Title insurance available.

What about generational land?

Unclear ownership, multiple claimants. Avoid unless title formally cleared through courts.

Should I buy through an IBC?

Flat 10% VAT, no owner-occ tax rates, $1K-$2K/yr fees. Useful for privacy only. Ask attorney.

Can I build on vacant land?

Yes. Building permit required. $150-$350+/sqft in Nassau. Post-2019 hurricane codes.

Cheapest way to buy?

Eastern Nassau condos $180K-$250K. Grand Bahama $150K. Family Island lots $50K. Foreclosures 20-40% off.

What if I pass away?

No inheritance tax. Get a separate Bahamian will at closing.

Must I live there to own?

No. 90-day rule only for EPR holders. Many owners visit weeks/year and rent the rest.

Who should I call?

Glenn Ferguson: +1-242-395-8495 / WhatsApp. BREA #1247, MLS, 24+ years. Full Toolkit.

Buyer's Toolkit (10 Tools)Closing Cost Calc Property Tax Calc Tax Comparison AI Property Finder Residency Checker Residency Quiz Residency Calc Cost Guide Best Caribbean Island Moving from US Beachfront Condos Tax Guide Pros & Cons 10 Steps About Glenn Ask Glenn

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Disclaimer: Informational only — not legal, tax, immigration, or financial advice. Data verified March 2026. Consult qualified professionals. Glenn Ferguson is a licensed Bahamas Real Estate Agent (BREA #1247) and Residency Consultant — not a lawyer, accountant, or tax advisor.