Navigating the Bahamas Real Estate Landscape: A Comprehensive Guide

Understanding the International Persons Landholding Act

In 1993, the Bahamas enacted the International Persons Landholding Act to streamline the process for foreigners purchasing property. This legislation significantly simplified the acquisition of real estate for non-Bahamians, with the following key points:

• Foreigners buying a single-family home or vacant land for residential construction do not need a pre-purchase permit, only post-acquisition registration with the Investments Board.
• Permanent residents and foreign inheritors of Bahamian property are exempt from permit requirements but must register their holdings.
• Permits are mandatory for undeveloped land over five acres or for properties not intended as private residences.

Mortgage and Lease Regulations

The act also addresses mortgages and leases:

• Licensed financial institutions can register property interests acquired through court orders without a permit.
• Foreigners do not need permits or registration for leases unless they are for business purposes and exceed 21 years.

Taxation: Leveling the Playing Field

The Bahamian government has eliminated the double stamp duty rate for foreigners, aligning it with the rate for Bahamian citizens. Stamp duty is a tax on real property transfers, structured as follows:

• 2% on properties valued under $20,000 US
• Up to 10% on properties over $250,000 US
• 1% stamp duty on mortgages, typically paid by the borrower

The tax is customarily split between the buyer and seller, unless an alternative arrangement is made.

Entry and Residency in the Bahamas

Travelers to the Bahamas must complete an embarkation-disembarkation card, provided by travel agents or carriers. Visa and passport requirements vary:

• Canadian citizens and UK subjects can stay visa-free for up to three weeks.
• US citizens on pre-cleared flights do not need a visa but must show proof of citizenship.

For extended stays, temporary or permanent residency is required:

• Temporary residency requires a return ticket and proof of financial support.
• Permanent residency necessitates a property purchase over $500,000 and a one-time fee of $10,000.
• Homeowner residency does not have a minimum purchase requirement but requires an annual $1,000 renewal fee.
• Annual residency is similar to homeowner residency, with a $1,000 renewal fee.

Investment Considerations

When investing in Bahamian real estate, keep these guidelines in mind:

• Location Matters: Prices vary by island, with main islands like New Providence and Grand Bahama commanding higher prices than more secluded family islands.
• Explore Options: View multiple properties to understand the market landscape.
• Professional Inspection: Have a certified professional inspect the property to avoid unforeseen issues.

Owning property in the Bahamas is an attractive prospect, and with the right knowledge, it can be a smooth process. Whether you're seeking an investment opportunity or a personal haven, the Bahamas offers a welcoming environment for property buyers.

For more detailed information on the International Persons Landholding Act, you can visit the Bahamas Government website. To understand the current real estate trends and statistics in the Bahamas, resources like Statista provide valuable insights.