Real Estate in the Bahamas: The appeal to live and work in the Bahamas is very clear. Strong sunny weather, pristine sandy beaches, and crystal clear waters are a major attraction for thousands of visitors every year.
The Commonwealth of Bahamas has tax rules and regulations that help make it more beautiful to investors. There are particularly great advantages for American and Canadian investors.
If you are considering investing in Bahamas real estate as a money-making venture, then this is what you should know.
Tenancy laws are very pro-landlord
Rent in the Bahamas is divided into two broad categories: short-term (holiday or vacation rentals) versus common rentals. For both types of rent, the rental amount can be negotiated independently between the landlord and the tenant, with no government restrictions on prices.
For normal fares, a security deposit is required, plus an advanced payment of the first and last month’s rent. For vacation rentals, it is common for tenants to charge a 20 – 50% reservation fee.
Best of all, in the case of “tenancy when victimized”, a landlord can call the police immediately to the residence, without the necessary court order many other countries.
Real Estate in the Bahamas
International Person Landholding Act
This is the law that requires all foreigners who plan to lease their properties to register with the Bahamas Investment Authority. The fees are as follows:
- Application for registration: $ 25.00
- Apply for Permit: $ 25.00
- Permit: $ 500
- certificate of registration:
- $ 50K or less: $ 50.00
- Between $ 50K and $ 101K: $ 75.00
- Over $ 101K: $ 100.00
Annual resident permits are available and have different costs depending on the category of permit. Allows the cardholder to remain in the Bahamas for the duration of the permit.
Beautiful and incredibly popular for tourists
The most popular neighborhoods are Lyford Cay and Old Fort Bay. Also, luxury communities found on Paradise Island have begun to take flight. Luxury residences found in the reef and forest ocean are particularly popular and convenient properties.
Foreign-Owned Rental Properties
Foreign-owned rental homes will have to apply for an additional license to operate as rental property. The annual taxes for running the property are as follows:
Discount: a property with a market value of less than $ 250K
Between $ 250K and $ 500K: 0.75%
$ 500K: Over 1%
Additionally, a 10% hotel guest tax will be required from tenants for each room available for rent.
What are the taxes involved in the purchase of a house
When a property is bought or sold, stamp tax and value-added tax have to be paid. This tax is divided between buyer and seller.
The required tax threshold is as follows:
- 2.5% stamp tax on all real estate transactions
- 7.5% VAT on all transactions over $ 100,000
- All services such as valuation, commission, and legal fees attract 7.5% VAT.
Annual real estate tax
In respect of property occupied by the owner, immovable property tax is levied as follows:
- The first $ 250,000 of market value is a rebate
- Over $ 250,000 and less than $ 500,000 is 3/4%
- More than $ 500,000 and less than $ 5,000,000 is 1%
- Is 1/2% of over $ 5,000,000
Rates about unrelated assets are:
Previously, the market value of $ 7,000wass $ 100.
1 and 1/2% over $ 7,000 of market value
About any other property
The first $ 500,000 is 1% of the market value
$ 500,000 is more than 2% of market value
Other charges
The seller is responsible for better property at the rate of 6% in the real estate commission, and 10% for vacant land.
Legal fees at the rate of 2.5% are payable by both seller and buyer.
Bank charges vary with the lending institution.
The government raised the investment limit
Recently, the government announced that it would increase the limit of permanent crop housing from $ 750,000 to US $ 500,000 to attract “crop cream” ultra-high net worth individuals. Quick consideration is given to buyers of property worth more than US $ 1.5 million.
Former Secretary of State Fred Mitchell has described the previous US $ 500,000 investment limit as absolutely low as a permanent residence.
A work permit costs $ 12,500 who is the managing executive of the bank for a year, and then you are giving someone permanent residency because he/ she can spend $ 500,000 for a home. There is something wrong with that.
The benefits of Bahamian residence include:
- Right to reside in the Bahamas without renewal of a permit
- The right to receive all privileges except the right to vote by the citizens of the Bahamas.
- Right to buy property in the islands
- Liberal tax regime
Easy travel for Commonwealth countries, members of the Caribbean Community, and members of the Organization of American States
Eligible to apply for Bahamas citizenship after completing residency requirements
Celebrity paradise
It attracted well-known celebrities such as Johnny Depp to more than 700 islands and SEZs who filmed Pirates of the Caribbean in Aquama and bought Pond Kei of Little Hall in 2004 for US $ 3.6 million; Wizard David Copperfield who bought 11 islands for US $ 50 million; Music artists Vishwas Hill and Tim McGraw, who made a 17-acre goat in 2006; Director, actor, and screenwriter Tyler Perry, who bought White Million Prince Bay for 20 million and business magnate Prince Aga Khan IV for the US $ 6.4 million in 2009, who spent the US $ 100 million for the 349-acre Bell Island.
And singer Shakira, who bought Bond Kei in 2011 for the US $ 16 million. Other celebrities reportedly own real estate in The Bahamas, including Nicholas Cage, Mariah Carey, Sean Connery, Michael Jordan, and Tiger Woods.
In addition to its cities – the capital, Nassau, which is located on New Providence Island, and Freeport, which is on the Grand Bahamas – some of the most sought-after properties in the Caribbean are on ‘Out Island’, including Abco, Andros, and Ekalins. And Crooked Island, Bimini, Berry Islands, Cat Island, Arethusa, Exumas, Inagua, Mayaguana, and San Salvador.
The country is available within 2.5 hours from New York and 45 minutes from Florida. The Bahamas economy is considered one of the most stable in the Caribbean, thanks to its close ties and proximity to the US.
