Guidelines for Real Estate in the Bahamas

Here are some general guidelines and considerations for real estate in the Bahamas, based on common practices and information available up to 2024:

Residential: Includes single-family homes, condos, townhouses, and villas. Luxury properties, especially beachfront or with ocean views, are particularly sought after.
Commercial: Office spaces, retail units, and land for development.
Vacant Land: Often purchased for future development or as investment.

Title: Ensure you have clear title deeds. In the Bahamas, property titles are generally secure, but always conduct a title search.
Foreign Ownership: Foreigners can own property in the Bahamas, but there are no restrictions on foreign ownership of real estate, except for Crown land which requires special permission.

Purchase Tax: Known as Stamp Duty, it’s typically 10% of the purchase price for land and 6% for improved property (like homes or condos). However, these rates can vary based on the value of the property and whether it’s vacant land or developed property.
Real Property Tax: This is an annual tax on the property’s assessed value. The rates can differ based on whether the property is owner-occupied or not.
Legal Fees: Expect to pay for legal services, which might include conveyancing, title searches, and closing costs.

Mortgages: While some banks in the Bahamas offer mortgages, international buyers might find it easier to secure financing from their home country or through international banks that operate in the Bahamas.
Down Payments: Typically, a significant down payment is required, often around 30-50% of the property value.

Physical Inspection: Always visit the property. Check for any physical encroachments or issues not visible in documentation.
Legal Review: Have a Bahamian attorney review all documents.

Zoning Laws: Check with local authorities for zoning regulations. Some areas might have restrictions on what can be built or how properties can be used.
Building Permits: If you plan to build or renovate, ensure all necessary permits are in place.

Gated Communities: Popular for security and amenities, especially for luxury homes.
Island Lifestyle: Consider the lifestyle you want. Some islands are more developed with amenities, while others offer a more secluded, natural environment.

Tourism Impact: Properties in tourist-heavy areas might have higher rental yields but could also face seasonal fluctuations.
Investment: Real estate in the Bahamas can be a good investment due to its appeal to tourists and second-home buyers, but always consider market cycles.

Ensure you understand the rules regarding repatriation of funds, especially profits from property sales, if you’re a foreign investor.