Q. Are real estate agents in The Bahamas licensed?

A. Yes. The Bahamas Real Estate Association BREA licenses all brokers and sales agents.

Real estate agents must undergo formal industry-specific education and pass a comprehensive written exam in addition to meeting other stringent criteria under the Real Estate (Brokers and Salesman) Act, 1995.

BREA promotes and maintains the highest standards of ethics, and Investigation and Disciplinary Committees deal with any complaints of professional misconduct by brokers/salespersons.

BREA is an international member of The National Association of Realtors (NAR) and many BREA members hold accreditations offered by NAR. It is advisable that you only use BREA members.

Q. Is it easy for a non-Bahamian to buy property in The Bahamas?

A. Yes. It is easy for a non-Bahamian to buy property in The Bahamas, although there was a time it was more costly. To encourage non-Bahamian investment, The Bahamas government passed the International Persons Landholding Act in 1993, reducing the costs associated with buying property and making them the same for foreigners as they are for local persons.

Q. How easy is it for a non-Bahamian to repatriate money from the sale of property in The Bahamas?

A. Non-Bahamians can repatriate any proceeds from the sale of Bahamian property, in the currency they choose, as long as they registered the property with the Central Bank of The Bahamas’ Exchange Control Department at the time of purchase.

Q. What are the tax advantages of buying property in The Bahamas?

A. One of the greatest benefits to buying land or investing in The Bahamas is that the nation is virtually tax-free. There are no income, capital gains or inheritance taxes. There is no sales tax except for the stamp duty paid on the conveyance of real property. There is real property tax. The government raises most of its revenue through import duties, licenses and fees.

Q. Can a non-Bahamian get financing from local banks?

A. It is possible for non-Bahamians to get loans, most often at 2.5% to 3.75% above the Bahamian prime rate. International investors should obtain Central Bank approval to get a loan to make bank processing more efficient. Banks will usually loan up to 50% of the sales price of the property, but each case is different. Your real estate broker can help guide you through this process.

Q. Can a non-Bahamian get residency through buying property?

A. Non-Bahamians who own or intend to own property worth more than $500,000 may receive accelerated consideration for permanent residency.

Should your home be valued at less than $500,000, you may apply to the Director of Immigration for an annual homeowner residence card. This card entitles the owner, spouse and any minor children to enter and remain in The Bahamas for the duration of the card’s validity. This card is only to ease entry into The Bahamas and is not equivalent to resident status.

There is a $500 fee for a homeowner residence card.

The Bahamian government takes great care in granting work and residency permits.

Q. Does a non-Bahamian require a permit to buy property in The Bahamas?

A. Non-Bahamians buying five acres or less for a single-family home do not require a permit but do have to register the purchase with the Investments Board at the Bahamas Investment Authority.

Purchases of more than five acres, or of land for any commercial use must receive prior approval.

The fees are:
- Application for registration - $25
- Application for permit - $25

Once certificate of registration or permit is issued:
- Property valued at $50,000 and under - $50
- Property valued between $50,000 and $$101,000 - $75
- Property valued above $101,000 - $100

Q. Does a non-Bahamian have to use a local lawyer when buying property?

A. It is advisable for you to do so. A local attorney will ensure all documents are properly prepared in accordance with Bahamian laws.

A local attorney will also give an opinion on the title to the property, which is equivalent to title insurance as the lawyer is liable should the purchaser find there is a defect in the title. Local attorneys carry indemnity insurance. A trusted real estate agent will help you select the law firm that best suits your needs.

Q. What are the transaction costs of buying or selling property in The Bahamas?

A. The average cost of buying or selling property in The Bahamas is 13.5%-18% above the net price of the property.

For a typical “gross sale” seller will pay:

1. Real estate agent’s commission: 6% of the gross sales price on sale of residential developed property; 10% on undeveloped land.

2. Government Stamp Duty (split between buyer and seller):
Up to and including $20,000 – 2%
From $20,000.01 to $50,000 - 4%
From $50,000.01 to $100,000 - 6%
From $100,000.01 to $250,000 - 8%
Over $250,000.01 – 10%

3. Legal fees: 2 1/2 % of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and 1/2% thereafter. Most lawyers have a minimum fee of between $500 and $750.

The buyer will pay:

1. Half the government stamp duty as detailed above
2. Legal fees as detailed above
3. Recording fees of $3.50/page on the conveyance and other closing documents
4. Payment of any permit fees, as detailed above, if applicable.

The buyer is responsible for all of the above-mentioned fees if the sale is a “net sale.”

Q. What form of property title is given in The Bahamas?

A. Most property is sold freehold. Leasehold properties are generally Crown Lands (government owned) that are leased for agriculture or development.
What are the real property tax rates?

Owner-occupied property:
• The first $250,000 is tax exempt
• $250,00.01 - $500,000: The rate of tax is 3/4% of the property’s market value
• $500,000.01 and higher: The rate of tax is 1% of the property’s market value

Other property:
o The first $3,000: The tax is $30.00

o $3,000.01 - $100,000: The rate of tax is 1% of the property’s market value

o $100,000.01 and higher: The rate of tax is 1.5% of the property’s market value