Bahamas Real Estate Guide to Permits, Residency and More

m-link">you are traveling on. A visa and passport is not
White sand beaches, clear blue waters, tax breaks,required of you if you are a Canadian citizen or
real estate and property; the Bahamas never lookedsubject of the United Kingdom unless the stay
so good. And yes, I said real estate. Bahamian realexceeds three weeks. U.S. citizens on regularly
estate is hotter than ever.scheduled airlines, pre-cleared for return at U.S
In 1993, the International Persons Landholding Act wasCustoms and Immigration at Nassau International
put into motion to encourage foreigners to purchase aAirport also do not require a visa (though proof of
second home in The Bahamas. And it couldn’tcitizenship is required).
be simpler. If a foreigner buys a single family dwellingYou are allowed a maximum stay of eight months
or vacant land to be used in the construction of such awith proper documents which includes a return ticket
dwelling, then he no longer needs to obtain a permitand evidence of financial support. If you would like to
from the Government prior to the purchase. He onlystay longer, then you have to apply for temporary
needs to register the acquisition later with theresidency to the Director of Immigration. If, however,
Investments Board. Permanent residents of theyou would like to make the Bahamas your permanent
Bahamas and foreigners who inherit property in theresidence by way of Bahamas property investment,
Bahamas don’t have to obtain a permit beforethen you will have to apply for permanent residency. If
acquiring land but must register afterward.you plan on working in the Bahamas, a work permit
However, there are cases where a permit will bemust be applied for separately.
needed for Bahamas real estate. First, if the propertyThere are different levels of residency. The first is
is undeveloped land and of five acres in size or larger.permanent residence which requires a purchase of a
Secondly, if the property is not a private residence, or itresidence of more than $500,000, subject to a $10,000
is not intended for development as such, a permit isone-time payment. Another level of residence is that
needed.of a homeowner where no minimum purchase is
In dealing with mortgages, the act is not meant to be arequired, however, your card must be renewed every
road block. In fact, it provides that licensed banks, trust,year for a fee of $1000. And the last level of
and insurance companies who acquire an interest in orresidence is an annual residence where, again, no
take possession of property under a court order mustminimum purchase is required but you must renew
register that acquisition. An acquisition by way ofevery year for a fee of $1000.
foreclosure under a mortgage or of land acquired byOwning Bahamas real estate sounds spectacularly
an authorized foreign state will not require a permit buteasy and that’s because it is. But there are
must be registered.some things to keep in mind when making an
With leases, foreigners are not required to obtaininvestment of this size. Here are a few guidelines to
permits, register leases, or letting agreements unlesshelp you out when buying Bahamas property:
they are for trade or business purposes and the termThink location: Depending where you buy, prices will
can exceed 21 years.vary. On the main islands such as New Providence
Not only has the government made owning a secondand Grand Bahama, prices are more than double the
home easy for foreigners, they have also included aprices in Florida. If you’re looking for an
condition so that a foreigner no longer pays a doubleinvestment property, these would be good choices. If
rate of stamp duty; he now pays the same single rateyou’re looking into buying a quiet retreat,
as a Bahamian.consider something on the family islands as they are
The stamp duty is a tax that is payable on the deliveryless expensive.
of all real property based on the value as follows:Have a look: Once you have decided where you
Stamp duty starts at 2% for real estate valued underwould like to buy a property, the next step is to have a
$20,000 US, but increases to 10% for real estate overlook at more than one property so you can get an
$250,000 US. Payment of this tax is usually sharedoverall picture of the market.
equally between the seller and the buyer. There is alsoTake a second look: It’s a good idea to get a
a 1% stamp duty on mortgages paid by the borrower.certified professional to look over the property just in
The usual practice in the Bahamas is for the tax to becase there are hidden surprises!
shared equally between buyer and seller unlessSo whether you’re making an investment or
otherwise agreed upon.buying a vacation home, the Bahamas will welcome
If you are entering the Bahamas, you must fill out anyou with open arms. All you have to do is make your
embarkation-disembarkation card which is usuallyticket to paradise!
provided by your travel agent, the airline, or the ship