Bahamas

What foreigners may purchase:

Overseas Investors may acquire residential properties in the Bahamas of up to five acres in size without prior government approval. Such acquisitions are required to be registered in accordance with the International Persons Landholding Act. These foreign owners are generally eligible for a Home Owners Residence Card (currently $500), renewable annually. This card will: facilitate entry into the Bahamas and entitle the owner, his spouse and minor children to enter and remain in the Bahamas for the duration of the validity of the card. Application may be made to the Director of Immigration.

RESIDENCY status can be obtained, through an attorney, for non-Bahamian citizens concurrent with purchase of a home with a greater than $500,000 value. Residency status allows for the possibility of corporate ownership of non-Bahamian companies registered in the Bahamas as a holding company or trust, which benefit from a tax-free status in the Bahamas.

The Bahamian dollar is tied to the US Dollar with a one-to-one ratio and The Central Bank of The Bahamas is accustomed to transactions with US Dollar purchases of Bahamian assets that allow for the repatriation of US Dollars at the time of sale. There are many reputable brokers/agents located throughout the island chain, generally specializing in listings area by area, e.g., the Exumas or Grand Bahama or Eleuthera. Raw land is available from a few thousand dollars to investment parcels well into the $10s of millions. Water view, 1/4 acre lots are routinely available for as little as $20,000 on the out islands. Waterfront from $40-50,000.

map of the Bahamas

CLOSING COSTS: A typical sale, which is called a "Gross Sale", assumes that the seller will be responsible for the payment of the real estate agent's commission (if an agent is involved). The commission on the sale of residential developed property is typically 6% of the gross sales price. On the sale of undeveloped property: 10%. The Government Stamp Duty (on the conveyance of real property) is a graduated tax.

The total amount of the Tax is calculated as follows:

When the value of the consideration is less than $20,000 = the rate is 2%;
$20,000 to $50,000 = 4%;
$50,000 to $100,000 = 6%;
$100,000 to $250,000 = 8%; and
greater than $250,000 = the rate is 10%

This tax is divided between the seller and the buyer. The legal fees on a sale or purchase are usually estimated at around 2.5% of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and 0.5% thereafter.

Other Fees for foreign buyers:

Application for registration - $25.00;
Application for permit - $25.00;
Certificate of registration: (a) the value of the property is $50,000 or less - $50.00; b) the value of the property is over $50,000 but under $101,000 - $75.00; (c) the value of the property is $101,000 and over - $100.00
Home owner resident card (if desired) - $500.00

Property Taxes:

On owner-occupied property: The first $100,000 is tax exempt. From $100,000 to $500,000: the rate of tax is 1% of the market value of the property; Above $500,000, the tax rate is 1.5% of the market value of the property.

For unimproved property: Up to $3,000: a fee of $30.00. From $3,000 to $100,000: a tax rate of 1% per annum of the market value of the property. Up to $500,000: a tax at the rate of 1.5% per annum of the market value; Above $500,000: a tax at the rate of 2% of the market value of the property.

The hundreds of islands,which comprise the Bahamas, are located both within the Atlantic Ocean and the Caribbean Sea. The island chain is located in close proximity to South Florida and shares similar weather patterns and great ease of access from the United States and Europe, whether by larger commercial air carriers into Freeport or Nassau, or regional planes or boats into the smaller areas.

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