The Insider's Guide to Buying Property in The Bahamas
Welcome to the 7th Heaven Properties guide to buying property in The Bahamas, your essential companion for navigating the enchanting appeal of this extraordinarily beautiful archipelago.
Known globally for its crystal-clear waters, exceptional beaches and high standard of living, The Bahamas has one of the most well established and diverse real estate markets in the Caribbean, ranging from the more affordable to ultra-luxury and everything in between.
Discover the beauty of this incredible island chain, find out why property buyers are investing in real estate in The Bahamas and delve into the real estate market with a showcase of property listings and blog posts highlighting the country’s unique charm and advantages.
From the ins and outs of buying property in The Bahamas to an essential overview of relevant taxes, this is your ultimate go-to resource.
Overview - The Bahamas Real Estate Market
The Bahamas: An Archipelago of Endless Possibilities
The Bahamas, an enchanting archipelago consisting of more than 700 islands and cays, serves as a true paradise nestled in the Atlantic Ocean. Boasting mesmerizing turquoise waters, pristine white-sand beaches, and lush tropical landscapes, this captivating destination offers property buyers the ultimate Caribbean lifestyle infused with vibrancy and luxury.
A Diverse Real Estate Market: From Cozy Cottages to Private Islands
The Bahamian property market caters to an array of preferences and budgets, offering a diverse range of real estate options. Modestly priced condos and townhouses, charming beach cottages, and opulent estates are available across the islands. For the ultimate in exclusivity, private islands present a once-in-a-lifetime opportunity to own a personal sanctuary in this tropical haven.
Island-Hopping Paradise: A Multitude of Choices for Homebuyers
With numerous islands to choose from, The Bahamas offers an unparalleled variety of settings for property buyers. From the bustling capital of Nassau on the island of New Providence to the laid-back charm of the Out Islands, there is a perfect island for everyone. Popular destinations for property investment include Paradise Island, Grand Bahama, Abaco, and Eleuthera, each with its unique blend of natural beauty, attractions, and amenities.
A Stone’s Throw from the USA: Easy Access and Connectivity
The Bahamas’ close proximity to the USA makes it an ideal Caribbean destination for property buyers. With regular flights from major US and Canadian cities to Nassau and other Bahamian islands, accessibility is a significant advantage. This convenient location allows quick and easy access to the tropical island lifestyle from North America.
Embracing the High Life: Sophisticated Amenities and a High Standard of Living
The Bahamas offers a high standard of living, with excellent amenities and services that cater to the needs of discerning property buyers. World-class marinas, upscale shopping centers, fine dining, and championship golf courses are among the many attractions that elevate the Bahamian living experience. High-quality healthcare facilities and well-regarded international schools make The Bahamas an attractive option for families and retirees.
Tax Advantages: A Haven for Savvy Property Investors
The Bahamas’ favorable tax environment is another significant draw for property buyers, offering numerous advantages such as no income tax, capital gains tax, or inheritance tax. This tax-friendly atmosphere makes it an appealing destination for investors and those seeking to optimize their financial portfolios.
Celebrating Bahamian Culture: A Melting Pot of Traditions
The Bahamas’ vibrant culture, with its diverse influences, creates a fascinating tapestry of traditions. From the pulsating rhythms of Junkanoo to the island’s rich culinary scene, Bahamian culture is an integral part of the island’s allure. Property buyers are drawn to the warm, friendly nature of the Bahamian people, which adds to the welcoming atmosphere of this island paradise.
A Showcase of Natural Wonders: Explore The Bahamas’ Pristine Beauty
The Bahamas is home to an abundance of natural wonders that captivate residents and visitors alike. From the breathtaking blue holes of Andros to the extraordinary Exuma Cays Land and Sea Park, the islands offer endless opportunities for exploration and adventure. The pristine waters surrounding The Bahamas are also renowned for their exceptional snorkeling, diving, and fishing experiences.
In conclusion, The Bahamas offers an unparalleled Caribbean experience, capturing the hearts and minds of discerning property buyers. Its countless islands, breathtaking beaches, crystal clear waters, high standard of living, tax advantages, and proximity to the United States all contribute to the archipelago’s magnetic appeal. With a diverse real estate market that encompasses modestly priced condos and townhouses, charming beach cottages, opulent estates, and even private islands, The Bahamas is the perfect canvas for creating your dream tropical sanctuary. Immerse yourself in this captivating island destination and embrace the abundant possibilities that await in the alluring world of Bahamian real estate.
“Its countless islands, breathtaking beaches, crystal clear waters, high standard of living, tax advantages, and proximity to the United States all contribute to the archipelago’s magnetic appeal”
Buying Process, Fees & Taxes
- Can foreigners buy property in The Bahamas?
Yes, foreigners can buy property in The Bahamas and the Government of The Bahamas welcomes investment from overseas buyers. There are no restrictions on foreign buyers acquiring real estate in The Bahamas and foreign buyers enjoy the same rights as Bahamian citizens, including the right to purchase beachfront land. Unlike other destinations in the Caribbean, a license or permit is not required, except for buyers purchasing over 2 acres, purchasing with the intent to rent out the property or purchasing for commercial development.
- Buying process
Buying property in The Bahamas is a relatively simple process, which typically involves the following steps:
- Begin your property search.
- Find your perfect property and make an offer.
- Once you have made an offer on a property and that offer has been accepted, we would recommend that you seek advice from a local lawyer to ensure all title documents are in order.
- A sales contract will be drawn up and, once agreed and signed, you will need to pay a 10% deposit.
- Buyer to transfer the balance of the purchase price and pay all required taxes.
- Non-Bahamians should register their investment with the Exchange Control at the Central Bank of The Bahamas to ensure that on resale they will be able to remit the net proceeds of the sale outside The Bahamas in the currency of the original investment.
- Fees & taxes
Government VAT on Property Conveyances (formerly Stamp Duty)
The Bahamas Government VAT on Property Conveyances is a graduated tax payable on the conveyance of all real property in the Bahamas. As of July 1, 2023, the following rates are applicable:
Bahamian Individuals
- 2.5% if value less than $100,000
- 4% if value is from $100,000 up to $300,000
- 6% if value is from $300,000 up to $500,000
- 8% if value is from $500,000 up to $700,000
- 9% if value is from $700,000 up to $1 million
- 10% if value is over $1 million
Non-Bahamian Individuals
- 10% in all cases
Local Companies
- 2.5% if value less than $100,000
- 10% if value is above $100,000
Non-Local Companies
- 10% in all cases
Payment: The buyer and seller conventionally split the Government VAT equally.
VAT Exemptions and Benefits for Bahamians
- First-time home buyers: May be exempt from VAT where the value does not exceed $300,000
- First-time buyers: Pay only 4% VAT on properties valued between $300,000 and $500,000
- Construction/Renovation: Bahamian citizens are eligible for a refund of VAT paid in connection with construction or renovation of their first-time home
VAT on Real Estate Services
10% VAT is applied to all real estate services, including:
- Legal fees (averaging 2.5% of property value)
- Real estate commissions
- Property appraisals
- Title searches and recording fees
- Insurance services
Legal Fees
Legal fees can vary, but average around 2.5% of the selling price of the property. There is also a small recording fee when the title deeds are recorded at the Public Registry. Buyer and seller are normally responsible for their own attorney fees. Legal fees are subject to 10% VAT (as are all services).
BREA standard commissions are as follows:
- Unimproved Property/Vacant Land: 10% of the sales price
- Improved property/Homes/Condos: 6% of the sales price
- Commercial property or building: 6% of the sales price
- Business: 10% of the sales price
Commissions are subject to 10% VAT (as are all services). The seller is usually responsible for payment of real estate commission.
Real Property Tax
Property owners are required to pay an Annual Real Property Tax which is paid according to the value of the property.
Real Property tax rates are calculated as follows…
Owner-occupied property:
- On the first $300,000 of market value: 0% (exempt)
- On the part of market value which exceeds $300,000 but does not exceed $500,000: 0.625%
- On the part of market value which exceeds $500,000: 1% (subject to a maximum of $120,000 per annum)
Commercial Property:
- On the part of market value which does not exceed $500,000: 0.75%
- On the part of market value exceeding $500,000 but not exceeding $2 million: 1%
- Value exceeding $2 million: 1.5%
Unimproved property:
- On the first $7,000 of market value: $100
- On the part above $7,000 of market value: 2%
Special Benefits:
- Senior Citizens Benefit: After $300,000 exemption, a 50% discount on balance of home value not exceeding $1 million (must be 65+ years old with NIB Senior Citizen’s card)
- Full Payment Benefit: If tax is paid by March 31st of any tax year, a 10% discount is applied
Latest Real Estate Listings in Bahamas
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Residency & Citizenship
- How long can a foreign citizen stay in The Bahamas?
Citizens of the USA, Canada, EU and the UK may stay in The Bahamas for several months without a visa.
- How do you become a resident of The Bahamas?
Home Owners Resident Card
Non-Bahamians who purchase property in The Bahamas can apply to the Department of Immigration for a Home Owners Resident Card. The card allows the holder (and family) to enter and remain in The Bahamas for the duration of the period of the permit.
Economic Permanent Residence Permit
As of 1 January 2025, foreign buyers investing a minimum of $1 million in real estate in The Bahamas can apply for an Economic Permanent Residence Permit. The investment must be held for a minimum of 10 years, and permanent residents must spend at least 90 days per year in The Bahamas to maintain their status.
Accelerated Consideration for Permanent Residence Permit
Through an investment of $1.5 million in property in The Bahamas, investors can benefit from accelerated consideration (typically 3 weeks processing time) for Permanent Residency Permits. Permanent residents of The Bahamas may remain in The Bahamas without restriction and benefit from The Bahamas’ tax benefits.
Residency in The Bahamas
Find out more: Residency in The Bahamas
- How do you become a citizen of The Bahamas?
If you have been a legal permanent resident of The Bahamas for 10 years (including 6 years of de facto residency and the 12 months immediately preceding application) and you are of independent financial means, you can apply for naturalized citizenship of The Bahamas.
Mortgages in The Bahamas
Looking for financing to fund the purchase of property in the Caribbean?
Contrary to popular misconception, it is possible for foreign nationals looking to invest in The Bahamas to apply for a mortgage.
Our partner – a very well respected international financial organization – offers mortgages for qualifying non-residents buying, building or improving a second home in The Bahamas.
Find out more: Caribbean mortgages
How to Get There
There are regular direct flights to The Bahamas from the USA, Canada, the UK and various other parts of the Caribbean. Nassau is served by Lynden Pindling International Airport (NAS), the largest airport in the Bahamas and the main international gateway to the country.
Major Direct Flight Routes (2025)
From the United States: Multiple daily flights from major hubs including Miami, Fort Lauderdale, Atlanta, New York, Charlotte, and Orlando with carriers including American Airlines, Delta, JetBlue, Southwest, and Bahamasair.
From Canada: Direct service from Toronto and Montreal.
From Europe: British Airways operates daily service from London Heathrow.
Inter-Island Flights
There are also direct flights from Nassau to other Bahamian islands including Freeport (Grand Bahama), Abaco, Andros, Eleuthera, Exuma, and Bimini. Domestic carriers include Bahamasair, Western Air, Pineapple Air, and Southern Air Charter.
Alternative Transportation
You can also reach The Bahamas by private aircraft or private boat. The airport features facilities for private jets, and the islands have numerous marinas for yachts and boats.
Note: Flight schedules, routes, and carriers are subject to change. Always verify current schedules with airlines or travel agents before booking.
- Miami to Nassau 55m
- Atlanta to Nassau 2h
- Charlotte to Nassau 2h 20m
- New York to Nassau 3h
- Toronto to Nassau 3h 12m
- London to Nassau 9h 30m
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