One of the key benefits of owning Bahamas Property is the low tax structure. The country has a developed real estate market, and transactions are transparent and secure. Before the sale is completed, the buyer’s attorney will verify that the property is legally yours and that there are no liens or other encumbrances. It is your responsibility to provide adequate documentation of the property’s history, which will help ensure its marketability.
The Bahamas Multiple Listing Service (MLS) is a cooperative data exchange program that includes the listings of participating brokers and all properties listed in the database. Other brokers will mark their properties with the IDX symbol, which indicates that they have agreed to exchange information about property. This website is a great resource for property information, but you should keep in mind that its information is not always 100% accurate.
The Bahamas has no income tax, capital gains tax, inheritance tax, or sales tax. However, there is Stamp Duty (+VAT) payable on any property conveyance. In addition, Value Added Tax (VAT) is paid on commissions and legal fees. Bahamas government also earns revenue through customs duties. The average duty rate is 35 percent. Customs duties are split between the buyer and seller.
Citizens of foreign countries can purchase Bahamas property. However, to buy land, one must invest a minimum of $500,000. The government of the Bahamas has laid out guidelines for non-Bahamians to obtain residency. Permanent residency is required for those who wish to work in the country, while non-Bahamians can obtain an annual homeowner’s residence card. The homeowner’s residence card is renewable each year and entitles the property owner and their family to enter and stay in The Bahamas with minimal formalities.
In addition to these incentives, the Bahamas has an excellent reputation as an international financial center. It has a modern infrastructure, excellent communications, and is a well-established parliamentary democracy. As one of the Western Hemisphere’s oldest continuous parliamentary democracies, The Bahamas has many advantages for investors.
A downturn in the country’s economy is likely to impact the demand for residential properties in the Bahamas. According to Engel & Volkers’ 2019 Real Estate Market Report, the number of residential sales in the Bahamas fell by nearly 20% in 2019. Following the outbreak of the coronavirus, the Bahamas government is expected to close its borders to international tourists for the rest of 2020 to limit the spread of the disease. This caused a sharp decline in air and sea travel. Tourism figures are expected to worsen in the second quarter of 2020.
The Bahamas Government has created incentives for new industries and free trade zones. Incentives are offered to attract international businesses, such as agribusiness, manufacturing, and tourism. The Free Trade Agreement of the Americas (FTAA) and proposed Bahamian membership in the World Trade Organization have also greatly impacted the environment in the country. luxury homes for sale in the bahamas are available for new hotels, expansion, and remodelling existing hotels.