FINANCING

Local banks offer BSD$ and US$ mortgages to finance the purchase of a home or property in The Bahamas. If being financed by a bank, it is important to receive pre-approval before beginning your property search.

LEGAL FEES

Both buyer and seller need legal representation by a Bahamian attorney. BE Luxury Real Estate recommends both parties be represented by different attorneys.

APPRAISAL FEES

An appraisal is required for all bank financed properties and is recommended for all property purchases. It is the buyer’s responsibility to obtain the appraisal. Appraisals costs generally costs $400 + VAT for a 2 to 3 bedroom homes and increase with large properties.

GOVERNMENT TAXES ON PROPERTY CONVEYANCES

• 2.5% Government Stamp Duty applicable on all property transactions valued at $100,000 or less.
• 10% Government Stamp Duty on all property transactions valued at $100,000 or more.

The usual practice in the Bahamas is for the tax to be shared equally between buyer and seller unless otherwise agreed upon.

Laws and policies are subject to change.

ANNUAL REAL PROPERTY TAX RATES

The rates of tax on real property are as follows:

In respect of owner-occupied property:

• The first $250,000 of market value is tax exempt
• More than $250,000 and not exceeding $500,000 of market value is 0.625%
• More than $500,000 and not exceeding $5,000,000 of market value is 1%
• More than $5,000,000 of market value is ½% (capped at $50,000 annually)

In respect of unimproved property: (other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act)

• First $7,000 of market value is $100
• More than $7,000 of market value 2%

In respect of any other property:

• First $500,000 of market value is 1%
• More than $500,000 of market value is 2%

EXEMPTIONS