Can a non-Bahamian purchase property in the Bahamas?

The International Persons Landholding Act, 1993, provides for non-Bahamians to be able to purchase real property in the Bahamas.

  Are there any permits required when purchasing property in the Bahamas?

According to the International Persons Landholding Act, 1993, permits are required by non-Bahamians if:
-  The property being purchased is 5 acres or more.
-   The purchaser intends to rent out a portion or all of the property.
-  The purchaser intends to use the property for a commercial development.

Also, under the above named act, a non-Bahamian who purchases land that does not require the issuing of a permit must register their purchase with the Foreign Investment Board.

  Am I required to register my property purchase?

Non-Bahamians should register their investment with the Exchange Control Department at the Central Bank of the Bahamas so that in the event that they choose to sell their property, they will be able to repatriate the proceeds in the currency of their original investment.

Click on the link ( http://www.opm.gov.bs/legislation.php) to view the following:
-  The International Persons Landholding Act
-  The International Persons Landholding Act Guidelines
-  Application for Permit
-  Application for Certificate of Registration

  What form of property title is given in the Bahamas?

Most of the properties are sold on a Freehold basis; however, there are some properties that are sold on a leasehold basis which are usually Crown Lands (Government owned properties). Although the Government of the Bahamas doesn't usually sell its property, it sometimes leases some of its Crown Lands for agricultural / development purposes.

  Will I be required to use a local attorney when purchasing property in the Bahamas?

Although it is not essential, the appointment of a local attorney is highly recommended. Aside from making sure that the title documents are prepared properly and that they are in good order, the attorney will give an Opinion on the title to the property. This Opinion is considered to be the same as title insurance and the lawyer is held liable should the purchaser find that there is a defect in the title. Local lawyers carry indemnity insurance.

  What are the costs related to buying or selling property in the Bahamas?

The Bahamian government charges a stamp tax on all real estate sales or transfers. This tax is split between the buyer and the seller unless otherwise specified or agreed to by both parties. The amount of the tax varies according to the value and they are as follows:
-  From $250,000.01 and over - 10%

Lawyers' fees by the Bahamas Bar Association for handling the sale and purchase of real estate and the scale fees are as follows:

        - Approximately 1 ½% of sale price (subject to negotiation between the purchaser and their attorney)

  Will I be able to repatriate the proceeds if I choose to sell my property in the Bahamas?

If you registered the purchase of your property with the Exchange Control Department at the Central Bank of the Bahamas at the time of purchase and later decide to sell your land you will be able to repatriate the proceeds.

  Are real estate brokers and sales agents in the Bahamas required to have a license?

Real estate brokers and sales agents are required to be licensed by the Bahamas Real Estate Association (B.R.E.A.) which is an international member of The National Association of Realtors (N.A.R.).

  Is there financing locally available to non-Bahamians / permanent residents for the purchase of property?

Local financing is available however the loan facility may only be given in US$ at international rates and the down payment required is usually in the area of 40% of the value.

  What taxes are there in the Bahamas?

The Bahamas has no income tax, capital gains tax, inheritance tax or sales tax with the exception of the Stamp Duty on the conveyance of real property.

The government's primary source of revenue is from duties charged by customs on all imported goods into the Bahamas.

There is also Real Property Tax. The following are the Real Property Tax Rates:

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% (¾%) 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 $35,000.00.

In respect of unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act:
-  Upon that part of the market value that does not exceed $3,000 a fee of $30.00
-  Upon that part of the market value which exceeds $3,000 but does not exceed $100,000 a tax rate of 1% per annum of the market value of the property.

In respect of any other 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 property.

"Market Value is defined as the amount the property would realize, if sold in the open market, without any encumbrances or restrictions.  If the return is not filed, the owner is guilty of an offense, 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.

In the case of an extension of time, the Chief Valuation Officer may postpone the date on which the tax is payable in a particular case, by notice in writing.

Exemptions

Property owned by Bahamians and situated in the Family Islands is exempt from property tax.  Property approved as commercial farm land (by the Ministers of Agriculture, Trade and Industry and Finance) is eligible for property tax exemptions.

Also exempt from property tax are:
-  Unimproved property owned by Bahamians, 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;
-  Places of religious worship; school buildings and their gardens and playing areas;
-  Property owned by foreign governments;
-  Property owned by foreign nations used for consular offices or residences of consular officials and employees;
-  Property used exclusively for charitable or public service from which no profit is derived.

   Can I establish residency in the Bahamas?

As with many emerging nations, the policies of The Bahamas Government are aimed at ensuring reasonable security, well-being and economic progress of The Bahamas and its people. However, due to our status as an offshore financial center which is utilized by persons from various parts of the world, The Government does give consideration to application for citizenship, permanent residency and work permits subject to applicable immigration laws and governmental policies.

Persons seeking permanent residence must be of good character and prepared to show evidence of financial support. Application is made to the Ministry of Public Safety and Immigration and must be accompanied by the necessary information. Accelerated consideration may be given to fit and proper applicants for permanent residence who demonstrate a genuine intention to reside in The Bahamas at least part of the year and which applicants either already own or intend to purchase a home in The Bahamas with a value in excess of $500,000. Any successful applicant, where applicable, may have his spouse and/or minor children endorsed on his permanent residence certificate.

Non-Bahamians are at liberty to apply for work permits but they must be able to demonstrate a special skill or expertise such that at the time of application there are no suitable Bahamian persons capable of holding the position for which the permit is being applied for. Certain categories of Work Permit applicants may request a permit for longer periods than the standard one-year period. Upon each renewal sought the criteria that was applicable to a new applicant will be required to be met. Should Work Permit applicants wish to be accompanied by their spouse and/or minor children, separate Residency Permit applications must be made.