Before acquiring Bahamas property, you should know the legal requirements. You may be required to register your property, whether it is a residential or commercial property. If your property is five acres or larger, you must first get a permit from the government. The government also requires certain documents, including a project proposal, financial projections, and proof of employment needs.
The Bahamas is a beautiful archipelago comprised of hundreds of islands. The tax system is favorable for foreign investors, and the country has the third-largest shipping registry in the world. The Bahamas also boasts some of the most luxurious homes in the Caribbean. You can enjoy world-class golf courses, spas, and world-class shopping in the nearby islands.
In addition to the tax advantages, the Bahamas’ real estate market is well-developed and transparent. Unlike other countries, the purchase of real estate in the Bahamas is open to foreign investors. The Bahamas real estate market is dominated by US interest, and Canadians, British, and Europeans are also active. If you are foreign, you can purchase property in the Bahamas, but make sure you register your property with the Foreign Investment Board before completing a deal.
When it comes to property taxes, the Bahamas has a system that provides a tax break for non-owner-occupied properties. Those properties with no more than four units are exempt from paying property taxes. Additionally, the Bahamas allows for the fast-tracking of residency applications for those who purchase real estate worth more than $1.5 million. If you don’t pay your taxes on time, you’ll have to pay a 5% annual penalty.
The VAT tax in The Bahamas is ten percent, which is shared between the buyer and seller. You can purchase residential property tax-free for up to $250,000, or a commercial farm for up to seven hundred thousand dollars. After that, the tax is one-half percent of the market value, or about 1.5%. For all other real estate, you can choose to pay a one-third of the market value.
The government has also made it possible for non-Bahamians to acquire residency in The Bahamas. These non-residents have the option to apply for annual residency cards, which give them the freedom to live and work in the country. However, this option is not automatic. It requires a significant amount of investment.
There are luxury homes for sale in the bahamas for foreign investors. Expatriates who want to purchase property in The Bahamas must obtain special approvals and get a permit from the Ministry of Works. In addition, they must register the purchase with the Central Bank Exchange Control Department. If they are considering building a new home or renovating an existing one, they can contact a local attorney or architect to help them prepare the application.