Is it possible for a non-Bahamian to purchase property in The Bahamas?
Yes. The International Persons Landholding Act, 1993, provides for the sale of real property in The Bahamas to non-Bahamians.

Are there any special permits required when purchasing property in The Bahamas?
Permits are required by non-Bahamians, as provided under the International Persons Landholding Act, if:
1. The property being purchased is greater than 5 acres.
2. The intention is to rent out all or a portion of the property.
3. The property being purchased is for commercial development.
Non-Bahamians who buy land for which a permit is not required must register their purchase with the Foreign Investment Board under such Act.

How do I go about getting a permit or registering my purchase with the Foreign Investments Board?
We can help you with this as part of your purchase from us. Non-Bahamians should also register their investment with the Exchange Control at the Central Bank of The Bahamas insure that on resale they will be able to remit the net proceeds of sale outside the Bahamas in the currency of the original investment.

In what form is title to property given?
The vast majority of property is sold Freehold. There are a few exceptions of leasehold properties. These properties are generally Crown Lands (Government owned) properties that are leased for agricultural or development purposes. The Government of The Bahamas does not generally sell its property.

Do I need to engage the services of a local attorney when purchasing property?
No, but the appointment of a local attorney is highly recommended. We can provide you with a list of attorneys to help you with this process. Apart from insuring that the documents of title are properly prepared and are in good order the local attorney, when representing the buyer, gives an Opinion on the title to the property. This Opinion is considered to be the same as title insurance as the lawyer is liable should the purchaser find that there is a defect in the title. Local lawyers carry indemnity insurance.

The seller is generally responsible for legal fees and real estate commissions. Commissions are more or less 6% for residential transactions and 10% for commercial transactions or for undeveloped property sales. The Purchaser will be responsible for:
A typical sale, which is called a "Gross Sale", assumes that the vendor will be responsible for the payment of:
1. The lawyer’s Opinion Of Title to the property
2. Recording fees ($3.50 per page) on the conveyance and other recordable closing documents.
3. Payment of the permit fees under the International Persons Landholding Act if applicable.
4. The Government Stamp Duty which is tax on the conveyance of real property. This graduated tax is calculated as follows:
• When the value of the consideration is less than $20,000, the rate is 2%
• When the value of the consideration is between $20,000 and $50,000, the rate is 4%
• When the value of the consideration is between $50,000 and $100,000, the rate is 6%
• When the value of the consideration is between $100,000 and $250,000, the rate is 8%
• When the value of the consideration is over $250,000, then the rate is 10%

What information is required from non Bahamians when purchasing property in The Bahamas?
1. Full names and addresses, and content info for all individual purchasers on title.
2. Present occupation and nationality of person taking title if any.
3. Immigration status in The Bahamas of persons on title, if any.
4. If title is to be taken in name of company then the registered office, the company name and contact person must be provided.
5. Dates and places of birth of any person who will be on title if the title is not in a company's name.
6. List and description of any other real estate you own in Bahamas owned by person on title.
7. Purpose for which the property being purchased. i.e. personal residency, rental property, or other purpose.
8. How the property will be titled; joint tenants with a survivorship rights; tenants in common with or without survivorship such as partners; etc.
9. A standard purchase contract, similar to ones found within the United States and Europe, must be provided to The Bahamas Government as part of this process.
10.If you desire to purchase more than 5 acres, or want to rent your property, then a special permit is required. This takes a little more time but is easy to obtain.

After I purchase a property will I be able to repatriate the proceeds of sale whenever I sell it?
Yes. You will be able to repatriate the entire proceeds including any profits provided you register the purchase with the Exchange Control Department of the Central Bank at the time of purchase.

Do I need any special approvals in order to build on a property or to make any changes to an existing structure?
Yes. You will need to obtain approval from the Town Planning Board and a building permit issued by the Ministry of Works. A local architect or engineer would be able to assist you with this. Very similar to the steps required within the United States, Europe and many places in South America.

Are there good qualified architects, contractors and engineers available in the islands?
Yes. Most if not all architects in the Bahamas were schooled either in the United States, Canada or the United Kingdom and have international accreditations. There is a local licensing Board for architects. The construction industry is also regulated, but the qualifications for licensing are not nearly as rigorous. The leading contractors are all civil engineers with international accreditations or have certified engineers on staff. Many of the smaller contractors are products of a good apprentice system and are very adept and skilled at efficiently carrying out residential construction. Civil, mechanical and electrical engineers in the Bahamas, like the architects were schooled in other countries and hold international accreditations from those respective countries and must also have a license issued by their respective local Boards. We can provide you with contractors that we work with as part of this process.

May I use the services of a non-resident architect?
Yes, but that architect cannot work in the Bahamas without a permit to do so. All building plans submitted to the Town Planning Board and the Ministry of Works must be signed off by a local licensed architect and local engineers. As in any jurisdiction there are local customs and procedures required in getting the job done and it is recommended that you utilize the services of the local professionals.

Are Brokers and sales agents in The Bahamas licensed?
Yes. Brokers and sales agents are licensed by The Bahamas Real Estate Association (BREA). Qualifications for licensing include sitting a written exam. BREA is an international member of The National Association of Realtors (NAR) and many BREA members are International Members of NAR and hold various accreditations offered by NAR including GRI, CRS, CRB, CIPS and CCIM. A few members are also members of the International Federation (FIABCI). The public is urged to ask and only use the services of a BREA member.

What is the cost of construction?
Construction costs in The Bahamas, as you might imagine, vary widely depending on the location of the construction site, the design of the building, the materials used and the finishes. Costs may be as low as $65.00 - $80.00 per square foot for low cost housing, however, a modest or minimum structure consisting of concrete block construction, timber roof framing and asphalt roof shingles will cost between $100.00 to $150.00. An average home will cost from $150.00 to $200.00, but not with top of the line finishes such as marble tile and granite or Corian countertops. A better than average home with good finishes, will cost from $200.00 to $400.00. For a luxury home the cost would be more on the order of $400.00+ per square foot for the finest finishes and details. On average, you can count on the cost being approximately 40% higher than a similar home in south Florida. This is mainly due to freight, duty and delivery cost to site representing approximately 65% of the F.O.B. material cost. It should also be pointed out that building standards are higher in the Bahamas than in South Florida. The majority of homes in the Bahamas are of concrete block, steel or poured concrete construction and are built to meet a very strict building code.

Is there local financing available to non-Bahamians and/or permanent residents?
Yes, but the loan facility may only be given in US Dollars at international rates and the down payment required is generally on the order of 40% of value.

What taxes are there in The Bahamas?
First and foremost we have no income tax, capital gains taxes or inheritance taxes. There is no sales tax with the exception of the Stamp Duty paid on the conveyance of real property.

The Bahamas Governments main source of revenue is from customs duties on all goods imported into the Bahamas. This tax may be as low as 7 % as in the case of raw lumber, computer software and as high as 75% in the case of luxury automobiles, 160% on raw tobacco and 210% on cigarettes. There is an additional 7% stamp duty payable on these goods. The typical rate of duty is around 35%. There are also property taxes. The rates are as follows:
On owner occupied properties:
First $100,000 - zero
Next $400,000 - 1%
Excess over $500,000 - 1.5%
On non-owner occupied properties are:
First $100,000 - 1%
Next $400,000 - 1%
Excess over $500,000 - 2%

Is it possible to establish residency in the Bahamas and if so how does one go about it?
Yes. The Government of the Bahamas has set specific guidelines that allow non-Bahamians to establish permanent residency in The Bahamas. There are two categories of permanent residency: Permanent residency with the right to work and permanent residency with out the right to work. One of the criteria for permanent residency is the investment of a minimum of $500,000 in The Bahamas. This investment may take the form of the purchase of real property with a minimum value of $500,000. Non-Bahamians who own property in The Bahamas may apply to the Director of Immigration for an annual homeowner's residence card. This card is renewable annually and entitles the owner, spouse and any minor child/children endorsed on the card to enter and remain in The Bahamas for the validity of the card. It is intended to facilitate entry into The Bahamas with minimal formalities.

What are the advantages to establishing permanent residency in The Bahamas?
Apart from the opportunity to live and work in a warm and pleasant environment there are also significant tax advantages for citizens of countries with high personal and corporate income taxes as well as inheritance taxes. The advantages vary depending on the citizenship of the applicant and the tax laws of the applicant's home country.

Is it possible to obtain Bahamian citizenship?
Yes it is possible, but it is a long and involved process. Typically favour is given to long-term permanent residents and spouses of Bahamians.

Is it possible to live and work in The Bahamas?
Yes. But you must appreciate that The Bahamas has a small young population. The total population of the Bahamas is less than 300,000 with a total land area of 10,000 square miles spread over 700 islands. The policy of the Bahamas Government is to protect the well being and provide maximum employment opportunities for Bahamians. In a nutshell in order to obtain a work permit to work in The Bahamas an employer must demonstrate that there is not a Bahamian ready willing and able to fill the position. Quite obviously the Bahamas would be overrun overnight if these safe guards were not in place.