Buying and selling property in The Bahamas can be a complicated process. It is important to be aware of the laws governing real estate transactions in the country. For example, there is no legal requirement to obtain a permit for foreclosure under a mortgage. However, it is necessary to register the acquisition of property when a non-Bahamian entity takes possession of it.
While most buyers come from foreign countries, a growing number of Bahamians are purchasing properties in the middle market as well. The tax system is highly favourable, making Bahamas property an excellent investment for foreign buyers. In addition, foreign buyers can also qualify for a Home Owners Resident Card. There are low property taxes, 1% for properties worth $500k or more, and stamp duty is split between the buyer and seller.
Investments in The Bahamas can yield attractive rental yields. Its tax structure attracts foreign investors and the real estate market is fueled by travel and tourism. The country enjoys a low crime rate, low property taxes, and inimitable natural beauty, making it an ideal place for property investment. The Bahamas also offers a free title for foreigners to purchase property, so foreign buyers don’t need to obtain a visa to buy property in The Bahamas.
A new luxury skyscraper is about to be constructed in The Bahamas, the Aqualina, and Prime Minister Philip Davis recently toured the site. This 11-story building is expected to offer luxury and amenities that will appeal to buyers from all over the world. The property will be located in Cable Beach and will be built by the Aristo Realty Group.
In addition to the tax structure, Bahamas real estate is subject to VAT. This tax, which is a ten percent flat tax, is usually shared between the buyer and the seller. First-time buyers can also benefit from exemption from the Stamp Duty tax if they purchase a residential property or vacant land. However, luxury homes for sale in the bahamas of these properties may be restricted.
Buying and selling property in The Bahamas is not cheap. The average transactional cost is around fifteen to twenty percent of the net price. These costs include government stamps on conveyances, legal and recording fees, and real estate agent’s commission. Buying and selling property in The Bahamas requires a lawyer for both parties.
The Bahamas government encourages foreign investment by providing guidelines for non-Bahamians to buy a home and become a permanent resident. Those who purchase a home without acquiring citizenship in The Bahamas may apply for a card called the “Annual Home Owner Resident Card”. This card allows non-Bahamians to stay in the country and work there.
To obtain a residence permit, applicants must have a valid passport and good character. They must also show proof of their financial support. Applicants must apply to the Ministry of Public Safety and Immigration and present the required documents. If they are found fit and proper, their applications can be expedited. Once approved, they will be able to have their family members included on their permanent residency certificate.