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
Stamp Duty
To purchase real estate in The Bahamas, buyers are required to pay Stamp Duty which varies as follows according to the value of the property:
- Up to $100,000: 2.5%
- Over $100,000: 10%
Payment of Stamp Duty is normally split equally between buyer and seller.
12% VAT (Value Added Tax) is applied to real estate services, such as appraisals, legal services, commissions, and insurance.
Legal Fees
We would recommend that you seek independent legal advice from a local attorney who will be able to guide you through the property transfer process.
Legal fees are paid by both buyer and seller at a rate of 2.5%.
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 $250,000 of market value: 0%
- On the next $250,000 up to $500,000 of market value: 0.625%
- On the next $500,000 up to $5,000,000 of market value: 1%
- On the part above $5,000,000 of market value: 0.5% (capped at $50,000 p.a.)
Unimproved property:
- On the first $7,000 of market value: $100
- On the part above $7,000 of market value: 2%
Any other property:
- On the first $500,000 of market value: 1%
- On the part above $500,000 of market value: 2%
Certain kinds of property are exempt from Real Property Tax including property owned by Bahamians in the Family Islands and property owned by foreign governments.
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.
Permanent Residence Permit
Foreign buyers investing a minimum of $750,000 in real estate in The Bahamas can apply for a Permanent Residence Permit.
Accelerated Consideration for Permanent Residence Permit
Through an investment of $1.5 million in property in The Bahamas, investors can benefit from accelerated consideration 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 (7 years in the case of those married to a Bahamian citizen) and you are of independent financial means, you can apply for 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, such as Jamaica.
Most international flights arrive at the airport in Nassau’s Lynden Pindling International Airport.
From North America, you can fly direct from cities including Atlanta, Cincinnati, Charlotte, Fort Lauderdale, Miami, New York, Toronto and Orlando to Nassau.
There are also direct flights from the USA to the Abacos, Andros, Eleuthera, Exuma, and Grand Bahama.
Alternatively, fly to the Bahamas by private plane or arrive by private boat.
- 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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