What are the Fees and Costs of Purchasing Property in the Bahamas?
- Purchase Price of the Property.
- Legal Fees — 2.5% of the gross purchase price (negotiable).
- Government VAT Stamp Duty — 2.5% of the value of when less than $100,000.00 and 10% of the value when over $100,000.
The stamp (duty) tax is shared equally between buyer and seller unless otherwise agreed upon.
Exemption for First Time Home Owners
The exemption from stamp duty for first time home owners has now been extended to 30th June 2023. However, all applications for the exemption must be made within twelve months of the date of the conveyance to the applicant. The Affidavit sworn by the applicant which accompanies the application must now state that there is not and never has been any other dwelling house held by the applicant or on his behalf situated in or outside of The Bahamas.
Applications for first time home owner stamp duty exemption on conveyances executed on or after 1st January 2003, must be submitted on or before 31st December 2018.
Value Added Tax
The Value Added Tax Act has been amended to make all transfers of real property exempt from value added tax, with the exception of commercial leases which remain subject to value added tax.
A 12% Value Added Tax (VAT) is charged on real estate services, including appraisals, legal work, commissions and insurance.
Laws and policies are subject to change.
How is the Market like in the Bahamas?
The real estate market in the Bahamas has become very active. With the injection of multi-billion dollar investments throughout the islands and a stable government that continues to invest in public infrastructure and education, the economy and quality of life is progressing steadily.
Location is key in the Bahamas, so once a property is priced right and is in good showing condition, now would be a favorable time to sell.
Buyers are always looking for deals, therefore, using an experienced agent in the negotiation phase is crucial.