FREQUENTLY ASKED QUESTIONS
What kind of properties can I purchase in the Bahamas?
Engel & Völkers is a full-service company providing real estate services throughout the islands in the Bahamas. We specialize in luxury properties, including homes, estates, condominiums, private islands, and commercial property.
What fees are involved in a real estate purchase?
- Legal fees
- Real estate commission
VAT (Value Added Tax) on real estate transactions is a graduated tax based on the conveyed value of the property.
- 2.5% where the value does not exceed $100,000
- 4% where the value exceeds $100,000 but does not exceed $300,000
- 6% where the value exceeds $300,000 but does not exceed $500,000
- 8% where the value exceeds $500,000 but does not exceed $700,000
- 9% where the value exceeds $700,000 but does not exceed $1,000,000
- 10% where the value exceeds $1,000,000.
The Vat charge is typically shared equally between the buyer and the seller.
Legal Fees – 2.5% of the purchase price. The buyer and seller typically negotiate their own legal fee.
Real Estate Commission – 6% on improved property, 10% on vacant land and businesses. The seller is typically responsible for paying the real estate commissions.
How much is Property Tax in the Bahamas?
Owner-occupied property (owner resides and uses exclusively as a dwelling):
- $0 - $300,000 = Exempt
- $300,000 - $500,000 = 0.625%
- Over $500,000 = 1%
There is a $120,000 ceiling for properties valued at $6,000,000 +
Can I get a mortgage as a foreign investor?
Most commercial and private banks offer mortgages to Bahamians, permanent residents and foreign investors. Your real estate advisor can assist with referrals to lending institutions.
Do I need to engage the services of an attorney when purchasing property?
A local attorney is necessary to ensure that there is a proper Opinion of Title and that all documents are in order. In the Bahamas, the law firm's opinion is considered to be the same as title insurance.
Why should I purchase a property in the Bahamas ?
The Bahamas offers foreign investors a wide range of properties. From multi-million dollar homes and private islands to condominiums, the Bahamas provides an ideal environment with a lovely climate throughout the year, beautiful beaches, and a positive investment return. Communities in the Bahamas are equipped with world-class amenities and many lifestyle options.
Are there taxes in the Bahamas?
The Bahamas has no income tax, capital gains taxes or inheritance taxes. There is no sales tax with the exception of VAT (value added tax).
The main source of revenue for the Bahamas Government is import duty and property tax.