The Bahamas is a beautiful archipelago made up of hundreds of islands. Its tax system is investor friendly and it boasts world-class golf, shopping, spas, and other activities. Its residents are friendly and the economy is stable. Tourism is the main industry. It also has some of the finest homes in the Caribbean.
The Bahamas is one of the top tourism and business centers in the world. The government promotes a business-friendly atmosphere and encourages investment in real estate. With a strong focus on financial services and tourism, the government has created a government policy that aims to see consistent growth in the real estate sector. In October 2002, the government announced plans to streamline the real estate process in the Bahamas.
Property in the Bahamas is in high demand among American investors. With the low tax structure and the well-developed real estate market, purchasing a property here is a good idea for many reasons. In addition to the low property taxes, the real estate process is secure and transparent. During the transaction, the buyer’s attorney will verify the validity of the property title. If there are any missing abstracts or other property history documents, this will decrease the property’s marketability.
When buying a property in the Bahamas, foreign investors should make sure that it is legally-registered. In the case of non-Bahamians, they must state their intended use of the property. Otherwise, the acquisition will be void. The government will also claim all monies paid by non-Bahamians to purchase the property.
Non-Bahamians can also purchase Bahamian property by acquiring a permit. The Investments Board has created policies to encourage foreign investment in real estate. Specifically, the International Land Holdings Act 1993 allows non-Bahamians to purchase property in the Bahamas. This registration process will require a $25-$100 registration fee.
Taxes are another important factor when buying Bahamas Property. Real property taxes vary by owner, type of property, and value. A property tax rate is based on the value of the property, including the land and improvements. Tax rates for non-owner-occupied property are lower than those for owner-occupied properties. The Department of Inland Revenue has the right to re-assess the property value if necessary. luxury homes for sale in the bahamas can be paid in Bahamian dollars or in US dollars.
In the Bahamas, transaction costs are relatively high, but this is offset by the low tax environment. Stamp duty can be between 4% and 10%, depending on the value of the property. Realtors’ fees are regulated by the Bahamas Real Estate Association and range between two and eight percent at the point of purchase. These costs are paid by both the buyer and seller.
Homeowners can also apply for a Home Owner’s Residence Card. This card enables the owner and family to live in the Bahamas. A Home Owner’s Residence Card can be renewed annually.