Foreigners can buy property in The Bahamas if they are eligible. The country has the third largest shipping registry in the world. Foreigners who purchase property are eligible to get a Home Owners Resident Card. Property taxes are minimal in the Bahamas. Foreign property owners pay 1% of the value of their property, while stamp duty is split 50:50.
Investors should consider the Bahamas Multiple Listing Service (MLS) to research properties. This service is a database of property listings and brokers. It is a reliable source for property information, but the buyer should always verify key facts before buying a property. The Bahamas has a tax regime that is extremely attractive for foreigners, and the country has some of the most expensive homes in the Caribbean.
Residential property in The Bahamas typically features colonial architecture with island accents. These properties often have wood shingle roofs and dormer windows. They also feature double hung and French doors on the upper level. Some residential properties feature gated communities, which are popular with expatriates. The country’s natural beauty is also a draw.
Whether you’re looking for a vacation property or a permanent home, The Bahamas is a great place to invest. The tax structure is low and the real estate market is mature. In addition, the Bahamas Real Estate sales process is secure and transparent. For example, the buyer’s attorney will check the title of the property to make sure it’s legal. If the title is not legitimate, it will be useless in the market. Also, the vendor should provide adequate documentation about the property’s history.
Non-Bahamians can buy property in The Bahamas if they have a permanent residency permit or inherit it from someone. But if they’re not Bahamians, they should still register their investment with the Foreign Investment Board. They also need to register their investment with the Central Bank of The Bahamas. The buyer can then take the net proceeds out in the same currency as the original investment.
Real estate in The Bahamas has no income tax, inheritance tax, or capital gains tax. There is also no sales tax, but property conveyances are subject to Value Added Tax (VAT). The Value Added Tax is 7.5 percent and must be paid on the purchase of real estate. This tax is offset by the low tax environment in The Bahamas.
The Bahamas Real Property Tax Act lists the different types of real property, and sets out how the value of each is assessed. The Tax Act applies to individuals, partnerships, and corporations. There are also special exemptions for some types of real property. For instance, non-Bahamians can apply to obtain an exemption from paying taxes on their property.
Real estate tax rates vary, and are based on the value of the property. The government created the tax to raise money for public services and meet local revenue needs. Foreigners must pay property tax if they purchase vacant land, but not on occupied property. However, there are bahamas luxury real estate from this tax, and they must apply for them using the Application for Tax Concession form.