The Bahamas is an archipelago comprised of hundreds of islands that offers some of the most luxurious properties in the Caribbean. The country boasts an investor-friendly tax regime, world-class golf courses, spas, and shopping. And, for those seeking a more secluded setting, there are private islands and waterfront property.
The tax structure in the Bahamas is very low, and foreign buyers can own free title to their real estate. The Bahamas real estate market is also well-developed and transparent. Buyers’ attorneys will inspect the property title to ensure it is genuine. The title must have all the abstracts and deeds, and any missing documents may lower the marketability of a property.
The Bahamas’ traditional architecture is colonial, with island accents. Typically, residential properties feature dormer windows and high-pitched wood shingle roofs. The upper levels have wooden covered verandahs and French doors. Some modern makeovers have removed the covered verandahs and double-hung windows. Some properties also have gated communities, which are popular with expatriates.
The Bahamas’ liberal and open economy encourages foreign investors to buy property in the country. Most foreign homebuyers come from the United States, Canada, France, Britain, Italy, and France. Foreign property buyers can obtain an annual Home Owner’s Resident Card for a fee of 1% on property worth $500k and above. Additionally, foreigners can also benefit from stamp duty, which is split between the seller and buyer.
Before purchasing luxury homes for sale in the bahamas in the Bahamas, consider getting financing for it. If the property is worth more than $2 million, consider consulting with a high-value mortgage broker. Enness is a leading high-value mortgage broker and can help you secure a mortgage for your Bahamas property. Specialist brokers will walk you through the options and answer any questions that you may have.
The transactional cost of purchasing Bahamas property is about 15% to 20% above the net price. This includes the government stamp on the conveyance and any legal and insurance fees. In addition, both the seller and the buyer must have legal representation. However, property tax in The Bahamas is exempt for Bahamians living on the Family Islands. In addition, property tax exemptions are also available for commercial farm land.
Taxes on property are collected by the Department of Inland Revenue. They are assessed annually, usually in mid-October and are due on the last day of December. In some instances, the tax amount is up to $50,000, so it’s important to pay them on time. They may be paid in United States or Bahamian currency. Failure to pay taxes on time will incur a penalty of 5% a year.
Before buying Bahamas property, you should hire a local attorney to ensure that the title documents are in order. The attorney’s role is to represent the buyer, as well as provide an opinion on the title of the property. This act is similar to title insurance, but it makes the attorney liable if there are any problems with the title.