Buying in the Bahamas
A non-Bahamian who purchases or acquires an interest in a condominium or property vacant or otherwise to be used by him/her as a single family dwelling or for construction of such a dwelling must apply to the Secretary to the Investment Board to register the purchase by completing "Application for Registration" Form I, which should be submitted to:
Office of the Prime Minister
P.O. Box CB10980
Nassau, N.P., The Bahamas
This should be accompanied by a copy of conveyance (proof of ownership), evidence of payment of stamp duty and Real Property Tax, and a Bankers Draft/Proposal Money Order in the sum of Bahamian twenty-five dollars made payable to "The Public Treasury."
• Upon receipt of the above, the purchase/acquisition will be registered and a Certificate of Registration subsequently issued.
• A permanent resident who acquires land or an interest in land shall apply to the Secretary to the Board to have same registered.
• A permit to purchase/acquire property is required if the property is undeveloped land and the purchaser would become the owner of five or more contiguous acres. A permit is also required where the non-Bahamian intends to acquire land or an interest therein by way of freehold or leasehold and which acquisition is not in accordance with the above.
• Prior government approval is not required for non-Bahamians to purchase residential properties of less than five acres. Such acquisitions are, however, required to be registered with the Investments Board and The Central Bank.
• The government has also adopted an accommodating stance on the granting of residency permits to non-Bahamian investors and homeowners. Major international investors and owners of residences valued at $500,000 or more are accorded accelerated consideration for annual or permanent residency permits.
• A homeowner's card is available to all non-Bahamian owners of residences. The card facilitates immigration formalities at all Bahamian ports of entry and entitles the homeowner, his/her spouse, and minor children to enter and remain in The Bahamas for the duration of the validity of the card.
Copies of the legislation are available for a small fee (B$7.20) from:
Government Publications
P.O. Box N7147
Nassau, N.P., The Bahamas
Tel: (242) 322-2410
TAXATION ISSUES
Death & Taxes?
Whoever said that death and taxes are the only two certainties in life, has obviously never lived in the Bahamas. With no corporate income tax, no capital gains tax, no personal income tax, no sales tax, and no inheritance tax – in fact, almost no direct taxation of any kind - the Bahamas is a veritable tax-haven.
Real Property Tax Rates - Tax Act amended as of Jan. 1st, 2003
Based on “Market Value”
In respect of owner-occupied property: The first $250,000 is tax exempt.
• On that portion in excess of $250,000 and less than $500,000 the rate of tax is 0.75% of the market value of the property;
• On the portion in excess of $500,000 the tax rate is 1% of the market value of the property.
• The maximum annual tax shall not exceed $35,000.
On a property valued at $725,000 this would be:
$1875 + $2,250 = $4,125 pa
“Market Value is defined as the amount the property would realise, if sold in the open market, without any encumbrances or restrictions. If the return is not filed, the owner is guilty of an offence, and upon conviction thereof, may be fined up to $3,000. Persons knowingly making false statements may be liable upon conviction to a fine of up to $3,000 or six months imprisonment, or both fine and imprisonment. If the tax is not paid on or before the last day the tax becomes due, a 10% surcharge is added.
Bahamas Double Tax Treaties
Since the Bahamas do not levy direct taxes, there are no double tax treaties between the Bahamas and other countries.
Bilateral Investment Treaties
The Bahamas does not have any Bilateral Investment Treaties
IMPORTANT:
Please note that we are neither a tax advisors nor accountants. The information found in this section has been obtained from the Internet. Therefore we recommend you seek expert advice before proceeding with any purchase.
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