Real Estate

Advice on buying Real Estate Bahamas Property

You have found a property you wish to purchase in Bahamas what next?

Buying Property in Bahamas - Costs of Purchasing Property

Bahamas Property Buyer's Guide explains the legal fees, legal procedures, real estate purchase taxes and mortgage procedure.

The ideal, relaxed lifestyle, coupled with a near absence of property taxes are attractions of purchasing real estate in the Bahamas.

The only taxes buyers are subject to is the property tax of 2% on real estate priced at over US$500,000.

The total purchasing costs in the Bahamas is between 1.6% and 8%, as the costs are calculated on a sliding scale based on the property purchase price.

Stamp Duty is the main component of the fees also based on a sliding scale and split equally between the buyer and the seller.

No income tax

No capital gains taxes

No inheritance tax

Property taxes are up to 2% on properties priced over US$500,000

Registration fees between US$100, an additional US$500 can be included for a homeowners residence permit.

Stamp duty between 1% and 5%

Legal fees between 0.5% and 2.5%

Purchasing property in the Bahamas follows a similar process to buying property in other markets, such as areas in Europe.

There are some restrictions that apply to foreigners, such as the restriction in ownership of land in excess of 5 acres.

All of the property purchased by foreigners in the Bahamas is required to be registered with the Investment Board and the Central Bank.

These processes are carried out once the transaction is completed and the buyer's lawyer can make the necessary arrangements.

Holding deposits are required for taking the property off the market while the buyer's lawyer carries out the necessary legal due diligence checks.

The holding deposit may be a set fee, or a percentage of the purchase price of up to 5%.

Using a lawyer specialising in property in the Bahamas is essential to receive correct advice and services.

The legal firm will also be able to arrange the residency permits that are available to property buyers. The residency permits can also enable the immediate family of the buyer permission to reside in the Bahamas for the validity of the residency.

Once the legal checks on the property and development company have been carried out, the private purchase contract will be signed by both parties.

The private purchase contract will stipulate the payment terms and obligations of both the buyer and the seller during the construction At the time of signing the private purchase contract, an initial reservation deposit will be required, often between 10% and 30% of the purchase price.

The remainder of the purchasing costs will then be required upon completion, unless a payment structure has been outlined in the private purchase contract.

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These guidelines are meant for guidance only and describe a straightforward purchase scenario. However this information is not meant to replace proper legal advice, which we always insist you take.

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