It has been replaced by the International Persons Landholding Act, 1993. The new act considerably eases the process of foreign ownership of homes and real estate.

Prior Government approval is not required for non-Bahamians to purchase residential properties of less than five acres. Such acquisitions are, however, required to be registered with the Investments Board and the Central Bank.

The new act has begun to fuel the revival of the second home market in The Bahamas and makes the assets of The Bahamas more accessible to those who enjoy living and/or doing business in paradise.

The Government has also adopted an accommodating stance on the granting of residency permits to non-Bahamian investors and homeowners. Major international investors and owners of residences valued at $500,000 or more are accorded accelerated consideration for annual or permanent residency permits.

A homeowner's card is available to all non-Bahamian owners of residences. The card facilitates immigration formalities at all Bahamian ports of entry and entitles the homeowner, his/her spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card.

Purchasing Costs

All real estate commissions in the Bahamas are based on the total gross sales price of the property and are fixed by the Bahamas Real Estate Association (BREA). It is required by law that all advertised property prices are gross prices which includes sales commission, sellers stamp tax and legal fees. The buyer has to pay his half of the stamp tax and his legal fees on top of that.

Stamp Tax

A graduated tax is payable on the conveyance of all real property in the Bahamas based on the value as follows:

Up to and including $20,000: 2%
From $20,000.01 to $50,000: 4%
From $50,000.01 to $100,000: 6%
From $100,000.01 to $250,000: 8%
$250,000.01 and over: 10%

The usual practice in the Bahamas is for the tax to be shared equally between the buyer and the seller unless otherwise agreed upon.

Legal Fees

The fee charged by the lawyer who prepares the conveyance is normally 2 1/2% of the gross sales price.

Registration fees for non-Bahamian purchasers:

Application for registration - $25
Application for permit - $25
Certificate of Registration:
(i) the value of the property is $50,000 or less - $50
(ii) the value of the property is over $50,000 but under $101,000 - $75
(iii) the value of the property is $101,000 and over - $100
Home owner resident card - $50

Annual Real Property Tax:

In respect of owner-occupied property: The first $250,000 is tax exempt. On that portion in excess of $250,000 and less than $500,000 the rate of tax is 3/4% of the market value of the property. On the portion in excess of $500,000 the tax rate is 1% of the market value of the property.

In respect of unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act: Upon that part of the market value that does not exceed $3,000 a fee of $30. Upon that part of the market value which exceeds $3,000 but does not exceed $100,000 a tax rate of 1% per annum of the market value of the property.

In respect of any other property: Upon that part of the market value that does not exceed $500,000 a tax at the rate of 1% per annum of the market value. Upon that part of the market value in excess of $500,000 a tax at the rate of 2% of the market value of the property.

Market Value is defined as the amount the property would realize, if sold in the open market, without any encumbrances or restrictions.