The Bahamas is a spectacular archipelago of hundreds of islands, boasting a tax structure that is friendly for foreign investors. It also boasts world-class shopping, golf, and spas. In addition, the Bahamas offers some of the most beautiful and luxurious homes in the Caribbean. Before investing in property in the Bahamas, it is important to do your research first.
There are no income taxes, capital gains taxes, or inheritance taxes in the Bahamas. However, a VAT tax of around 10% of the net price is levied for conveyances of property. harbour island real estate In addition, a 7.5 percent Value Added Tax (VAT) is levied on legal fees, commissions, and other fees. Customs duties are another source of government revenue. An average of 35 percent is levied on sales and imports, and Value Added Tax (VAT) is added to these charges.
Foreigners can also buy real estate in the Bahamas without any restrictions. The Bahamas government has a law titled International Persons Landholding Act, 1993 that makes it easy for foreigners to buy property here. The legislation allows non-Bahamians to buy and sell property, including single family homes. In addition, a few properties in the Bahamas have a private jet landing strip.
One such property is Sunset Harbour Estate on the outer banks of The Bahamas. This 36-unit complex is ideally situated, just a short distance from Port Lucaya. The property is beautifully landscaped and designed, and enjoys a full-time estate manager and maintenance staff. The property sits on almost 2 acres of land.
Since the global financial crisis, demand for residential property in the Bahamas has fallen by twenty percent. In fact, some areas have even experienced 60 percent decreases. However, the country has a stable democratic government and the perfect weather throughout the year. In addition, the Bahamas has a thriving expat community. This makes the Bahamas Property Market an ideal place to invest in real estate.
The Bahamas is home to a wide variety of types of residential property. Most homes have colonial architecture, with island accents. They typically have high-pitched wood shingle roofs and double hung windows on the upper level. Traditional houses in the Bahamas also feature wooden covered verandahs and French doors. Gated communities are particularly popular with foreigners.
The Bahamas Property Fund is a real estate investment trust comprised of three commercial properties in The Bahamas: the Bahamas Financial Centre in New Providence, One Marina Drive in Paradise Island, and Providence House on New Providence. Its investments in real estate span a variety of industries, including retail, restaurants, and hotels. Moreover, the fund’s shares trade on the Bahamas International Securities Exchange under the symbol “BPF”. Managing the properties is Royal Fidelity Bank & Trust, which has more than $2B under administration and management.
While buying a property in The Bahamas, it is important to understand the local property tax. The government instituted the real property tax in 1969 to fund local services and meet local revenue needs. Foreigners must pay property tax for any property owned by them unless it is vacant. However, there are certain exemptions for foreigners. To obtain these exemptions, you will need to submit an Application for Tax Concession.