If you have decided to buy a property in the Bahamas, you may be wondering how to go about doing so. For one, it is very important to have the proper paperwork in place. As a non-Bahamian, you will need to obtain a permit from the government before you can buy real estate. This is especially important if you’re purchasing a property over two acres or intending to develop it.
In 1969, the government introduced a real property tax to help the country finance public services and meet local revenue needs. Even foreigners who purchase vacant land are required to pay real estate tax, but there are exceptions. The government assesses the value of the land and improvements to determine the tax rate. While foreigners may be exempt from paying this tax, it is very important to know that this exemption is not automatic. You must apply using an Application for Tax Concession to request a real property tax concession.
The Bahamas is a premier centre for business and tourism, which is one of the main reasons why foreign investors are drawn to buy property here. The government is committed to creating a business-friendly environment and encouraging investment in real estate. Currently, the country’s economy is stable and growing. Besides the booming economy, the country has also introduced a government ministry of financial services that aims to make property purchase easier.
In addition to the government stamp tax on property sales, Bahamas property owners must also pay real estate agent’s and legal fees. These costs are typically around 15%-20 percent of the net price of a property. The government also charges Value Added Tax (VAT) on all commissions and legal fees related to property transactions.
The Bahamas has a variety of property types. There are single family homes, town houses, condos, and rental properties, as well as vacant land. In addition, the country has a favourable tax system. harbor island bahamas real estate The country’s real estate market is extremely diverse, making it possible to purchase a property that suits your lifestyle and your budget.
The Bahamas government also offers incentives for foreign investment. For example, a non-Bahamian who owns a home in the country can apply for an Annual Home Owner Resident Card. This card is valid for one year and allows the owner to reside in the Bahamas with their family. However, it does not include the right to work.
The Bahamas have a tropical climate, with two distinct seasons. The wet season lasts from May to October, while the dry season occurs from November to April. The Bermuda High, which brings southeasterly winds from deep within the tropics, contributes to the rainfall during this period. Daily high temperatures range between 31 degC and 75-77 degrees Fahrenheit. Thunderstorms are common and intense during the wet season. In some cases, tropical storms can also contribute to the rainfall.