Why do foreigners invest in The Bahamas?
Sandwiched by the Caribbean and The Atlantic, The Bahamas is a paradise endowed with sparkling white sand, temperate climate, and marine life like no other. The Bahamas is arguably the world’s most beautiful island country. It is also called “a rich man’s playground.”
Foreigners invest in The Bahamas for several reasons: to vacation in a paradise, to retire and live forever in paradise, to create a high-end resort, or to develop a multi-million dollar estate.
Can I bring my family for a vacation to The Bahamas?
Nationals of over 120 countries, including the US, may bring their family to The Bahamas to stay there for three months.
Is it possible for a Foreign Investor to purchase property in The Bahamas?
Yes. The International Persons Landholding Act, 1993, permits the sale of real property in non-Bahamians in The Bahamas.
What are the other costs of buying or selling properties in The Bahamas?
The seller pays for 50% of the government VAT on the conveyance, the agent’s professional fee, and the seller’s legal fees.
The buyer pays 50% of the government VAT on the conveyance and the buyer’s legal fees.
Value Added Tax(VAT): The Bahamian Government has imposed a 12% VAT on all real estates related professional services, such as commissions and legal fees as of July 1, 2018,
Are there any permits needed to acquire a property in The Bahamas?
Most of the time, no special permits are required.
Non-Bahamians may simply register their acquisition to the Foreign Investment Board, as stated in the International Persons Landholding Act.
However, permits can be required from non-Bahamians, under the following circumstances:
- The property for purchase is more than 2 acres
- A portion of the property will be rented out
- The buyer has plans to develop the property for business
Foreigners should consider registering their investment with the Exchange Control at the Central Bank of The Bahamas to ensure that they will be able to remit the net proceeds of sale outside the Bahamas in the original investment currency upon resale of the property.
When it comes to the form of title, are properties in the Bahamas Freehold or Leasehold?
The majority of properties sold in The Bahamas are freehold. There are a few leasehold properties. These properties are generally Crown Lands that are leased for agricultural or development purposes.
Is title insurance available in The Bahamas?
Yes. There are companies offering title insurance in The Bahamas. The risk premium runs between .20% – .27% of the value.
What do I need to prepare so I can build on the property or renovate
an existing structure?
You may apply for a building permit at the Ministry of Works and approval from the Town Planning Board. A local architect or engineer will know what to do.
Are there any good architects and engineers in The Bahamas?
Absolutely, many Bahamian architects and engineers have studied in the US, Canada, and the United Kingdom. Most of them have international accreditations. They spearhead the leading design and construction companies in The Bahamas.
Smaller contractors have learned from bigger once through previous work experience and can carry out residential construction satisfactorily.
I have a preferred international architect. Can I bring him in?
You are not alone. Many high-profile clients, especially Hollywood celebrities have several homes across the world built by their own architect.
We can make this arrangement work by having your architect partner with a local licensed architect and local engineers who can sign building plans for submission to the Town Planning Board.
Is there a local financing option available to non-Bahamian or permanent residents?
Yes. However, the loan facility is given in USD at international rates. The downpayment required in 40% of the property’s appraised value.
What taxes do you have in The Bahamas?
The Bahamas does not have an income tax, capital gains taxes, or inheritance taxes. There is no sales tax, except for the government tax (value-added tax) paid on the conveyance of real property.
As of July 1, 2018, the Bahamas Government has imposed a 12% Value Added Tax (VAT) on all real estate related professional services, such as commissions and legal fees.
The Bahamas government mainly earns from taxes levied on imported goods which range from 0% for computers and computer software up to 65% for non-hybrid cars and 220% for cigars.
How can I become a permanent resident of The Bahamas?
Yes. Non-Bahamians can become permanent residents. One prerequisite is the investment of at least $750,000 in The Bahamas, possibly through the purchase of a real property.
What are the advantages of becoming a permanent citizen of The Bahamas?
You may live, work, and play in paradise. You may also enjoy significant tax advantages, especially if you’re a citizen of a country that imposes higher tax rates.
Can I become a Bahamian citizen?
Yes, it is possible after a long process. Priority is given to long-term permanent residents and spouses of Bahamians.
What are the most popular areas in The Bahamas?
Gated residential communities on New Providence and Paradise Island are hot as of the moment. Among them are Old Fort, Lyford Cay, Port New Providence, Sandyport, and Ocean Club Estates.
Up and coming residential communities in the family islands include Hope Town, Harbour Island, Eleuthera, George Town, Exuma, and The Exuma chain of islands.
What are the advantages of becoming a permanent citizen of The Bahamas?
You may live, work, and play in paradise. You may also enjoy significant tax advantages, especially if you’re a citizen of a country that imposes higher tax rates.
Thinking of moving to The Bahamas? Here are answer to frequently asked questions.
