The Bahamas is a breathtaking archipelago of hundreds of islands that has a relaxed and investor-friendly tax regime. The country also boasts world-class golf, shopping, and spas. It is also home to some of the most luxurious homes in the Caribbean. When it comes to buying property, the Bahamas offers a wide range of options.
Taxes for purchasing and selling property in the Bahamas vary depending on the property value. In general, the tax amounts to about 10% of the market value of the property. However, there are certain exemptions. For example, the first $250,000 of owner-occupied residential property is tax-exempt. Between that figure and $500,000, the tax rate is one-third of the market value. After $500,000, the tax rate jumps to 1.5%.
Non-Bahamians can also purchase property in the Bahamas. However, they must first obtain a government permit. This is necessary if they intend to develop the property. A permit is required for properties that are five acres or more. For large-scale projects, it is necessary to register with the Bahamas Investment Authority (BIS). A permit is granted after the investor provides assurances that the property will be developed. The property buyer must submit a project proposal, financial projections, and projected employment needs in order to gain approval.
Investing in real estate in the Bahamas is an excellent way to make a profitable investment. The real estate market in the Bahamas is highly competitive and is characterized by strong rental yields. Many international investors choose to invest in Bahamas property because of the safe investment climate and the relaxed Bahamian lifestyle. In addition to the international market, foreigners can also purchase land and buy homes in the country.
The Bahamas Property Fund (BPF) is a real estate investment trust that owns three commercial properties in The Bahamas. These properties include the Bahamas Financial Centre, One Marina Drive, and Providence House in New Providence. The fund buys commercial real estate with tenants from a variety of industries. Its shares trade on the Bahamas International Securities Exchange under the symbol “BPF.” ocean club estates bahamas is managed by Royal Fidelity Bank & Trust. It currently has $2B in assets under management and administration.
While purchasing property in the Bahamas, investors should be aware of the tax obligations. The tax rate on real estate in the Bahamas is two percent of the property’s market value. Failure to pay taxes on property in the Bahamas is a criminal offense. False statements made to avoid the tax can lead to fines and imprisonment.
There are many islands in the Bahamas to choose from. The Grand Bahama is the most popular. Its property offers every amenity imaginable. Its capital city, Nassau, is located on the 21-mile long New Providence island. It is linked to neighboring Paradise Island via a bridge.