ASK Glenn about buying a home in The Bahamas

1. What is the average cost for a home in Nassau Bahamas?

The average cost for a home in Nassau, Bahamas can vary greatly based on factors such as location, size, and amenities. Prices for homes in Nassau typically range from around $250,000 to several million dollars. However, the average as noted by the Bahamas Real Estate market is around $500,000 to $700,000. But just let us your budget and we will work with you to find your ideal real estate listings.

2. Is the Bahamas a good place to invest in real estate?

Investing in real estate in the Bahamas can potentially be a good decision based on several factors:

1. High Tourism Rate: The Bahamas attracts millions of tourists annually, so properties can often be easily rented out to vacationers for a good return.
2. Stability: The Bahamas has a stable political climate and is generally considered safe for foreign investment.
3. Variety of Property Types: From luxury homes to condos and beachfront properties, there is diverse real estate available to fit different investment strategies.
4. No Income Tax: The Bahamas does not impose income tax, which can be attractive for investors.
5. Residency Program: The Bahamas offers a residency program to individuals who invest a certain amount in real estate.
   

However, there are also significant considerations potential investors should be aware of:

1. High Costs: Real estate in popular areas of the Bahamas can be quite expensive. Maintenance costs can also be high, especially for beachfront properties which may encounter damage due to weather.
2. Natural Disasters: The Bahamas sees regular hurricane activity, which could damage properties.
3. Regulations and Restrictions: There are regulations regarding real estate purchases by non-Bahamians, which may require government permission.
4. Economic Dependence: The Bahamian economy heavily relies on tourism and offshore banking, making it vulnerable to recessions and international legislation changes.
5. Resale Market: Reselling a property might not be as easy or fast as it would be in areas with higher demand or lower price points.

Therefore, investing in Bahamian real estate requires careful research, a clear understanding of the local market, solid financial resources, and ideally, the assistance of a local real estate expert.

3. Can you buy a house in The Bahamas without citizenship?

Yes, foreigners can buy property in The Bahamas and the government has encouraged this by easing the restrictions on property purchases by non-Bahamians. However, there may be a requirement for a permit from the government for purchases of property over certain sizes, particularly if the property involves land of five acres or more or is undeveloped. Glenn would be happy to guide you through any regulatory requirements. 

4. How long can you stay in the Bahamas if you own a home?

If you own a home in the Bahamas, you can apply for an Annual Homeowners Residence Card which would allow you to stay in the Bahamas for the entire year. However, this does not give you the right to work in the Bahamas. Still, you must adhere to immigration laws and regulations which typically allow non-residents to stay up to 90 days without a visa. It is recommended to check the most current regulations with the Department of Immigration of the Bahamas.

5. How long does it take to buy a house in The Bahamas?

The time it takes to buy a house in The Bahamas can vary depending on several factors. On average, the process for a foreign buyer typically takes around 2-3 months from the moment you choose a property to the completion of the purchase.

However, this timeline can be shorter or longer depending on negotiations, funding availability, legal procedures, and obtaining necessary approvals from the Bahamian government for non-Bahamian buyers. Glenn will work closely with you and the other parties involved including real estate agents and legal professionals to navigate the process smoothly and efficiently.

6. What's the lowest down payment for a house?

The down payment on a house in the Bahamas typically ranges from 10% to 20% of the purchase price. However, this can depend on various factors including the type of property, the purchaser's nationality, and whether the purchaser is a first-time buyer. Glenn will work with you and your financial advisor to ensure that you have the best financial options available. 

7. Are property taxes high in the Bahamas?

Property taxes in The Bahamas are generally considered moderate compared to other countries. The first $300,000 on owner-occupied residential property is tax-exempt.

On the value of owner/occupied properties between $300,000.00 and $500,000.00, the rate is 0.625% per annum of the market value. On the portion over $500,000.00, the tax rate is 1% per annum of the market value of the property.

As of 2022, there is a ceiling of $120,000 on an owner-occupied home.

For unimproved Bahamas property other than that exempt under the provisions of the Real Property Tax Act (section 39):

• Upon that part of the market value that does not exceed $7,000 a fee of $100.00
• Upon that part of the market value which exceeds $7,000, a tax rate of 1.5% per annum of the market value of the Bahamas property.

For commercial property:

• Upon that part of the market value that does not exceed $500,000 a tax at the rate of 1% per annum of the market value
• Upon that part of the market value in excess of $500,000 a tax at the rate of 2% of the market value of the Bahamas property.

Exemptions:

• Bahamas property owned by Bahamians and situated in the Family Islands is exempt from a property duty.
• Bahamas property approved as commercial farmland (by the Ministers of Agriculture, Trade and Industry and Finance) is eligible for property tax exemptions.

Also exempt from property tax:

• Unimproved Bahamas property owned by Bahamians (in New Providence or the Family Islands), meaning property without physical additions or alterations, or any works benefiting the land which have not increased the market value thereof by $5,000 or more;
• Bahamas property used exclusively for charitable or public service from which no profit is derived.
• All property located in Freeport, Grand Bahama.

A 12 % Value Added Tax (VAT) is charged on real estate services, including appraisals, legal, and commissions.