The Bahamas is an archipelago of hundreds of islands that is home to some of the most beautiful properties in the world. It has a friendly tax system and a mature real estate market that makes buying and selling property here a hassle-free process. In addition to its spectacular landscape, The Bahamas offers world-class golf, shopping, spas, and some of the most luxurious homes in the Caribbean.
The architecture in the Bahamas is typically colonial in style with island accents. Most residential properties have dormer windows and high-pitched wood shingle roofs. Many homes also have wooden covered verandahs or French doors and double-hung windows. Many of the properties are located in gated communities, which appeal to expatriates.
The Bahamas Property Fund is a real estate investment trust that owns three commercial properties in The Bahamas. These properties include the Bahamas Financial Centre, One Marina Drive, and Providence House. Its investments are diversified in terms of industries and tenants. Its shares trade on the Bahamas International Securities Exchange under the symbol “BPF”. Its investment manager is Royal Fidelity Bank & Trust, which has over $2 billion of assets under management and administration.
After the global financial crisis, the Bahamas property market experienced a 20 percent correction from its peak, with some areas seeing declines as high as 60%. Fortunately, the housing market has stabilised and rental yields are moderate to good. Moreover, foreigners can now own free-title Bahamas property. The country’s low-crime environment and international accessibility make it an attractive investment.
The Bahamas has an extremely appealing tax system and a wide range of property options. Aside from being a tourist hub, the Bahamas also offers a relaxed lifestyle with friendly locals. Additionally, the economy of the country is stable and growing, with tourism as the primary industry. For this reason, the real estate market is highly competitive.
Real property tax rates are determined by the value of a property. This includes the land as well as any improvements. The government imposes a 7.5 percent Value Added Tax (VAT) on transactions. lyford cay bahamas rentals First-time buyers and those purchasing vacant land are exempt from paying the tax. However, buyers should seek legal advice before purchasing their property.
Buying a home in the Bahamas means acquiring an annual residency permit from the Department of Immigration. This residency card entitles the owner and their family to reside in the Bahamas for a year. However, the process does require a processing fee that begins at $10,000. However, once the homeowner has their annual residency card, they are eligible for tax advantages.