Investing in Bahamas Property
Investing in Bahamas property can be a great idea if you are looking for a tropical island lifestyle and tax advantages. The Bahamas is home to hundreds of islands with varying landscapes and stunning natural beauty. It has an investor-friendly tax code, world-class golf, shopping, spas, and other attractions. It also boasts some of the most luxurious homes in the Caribbean.
Most foreign homebuyers come from the United States, Canada, France, Britain, and Italy. Foreigners are allowed to buy property in The Bahamas without a work permit, but a permit from the Government is required if you wish to develop a piece of land larger than five acres. The Bahamas also offers permanent residency for foreign owners of property. Foreigners who buy property in The Bahamas qualify for homeowner’s residence cards and permanent residency, but the latter does not provide the right to work in the country.
The Bahamas has a low tax structure and an established real estate market. Real estate transactions in the Bahamas are secure and transparent. When purchasing property, the buyer’s attorney will check the property’s title to ensure that it is legal. If the title is invalid or abstracts are missing, this would reduce the property’s marketability. The vendor also needs to ensure the history of the property is correct and accurate.
There are also some islands that offer complete seclusion. For example, Stella Maris is a beautiful island in the Southern Bahamas. It was called the most beautiful by Christopher Columbus when he visited the island in 1492. You can enjoy the island’s natural beauty, history, and culture. The Bahamas is home to several beautiful islands and a variety of water sports.
Although the Bahamas is a popular destination for tourists, it can also appeal to foreign investors who are looking for a unique way to get a piece of paradise. There are many opportunities for medium-term growth and strong rental yields. Foreign buyers can purchase free-title real estate in the Bahamas. harbour island real estate And the government is working hard to make it easier for people to own their own property.
There are no sales taxes, income taxes, inheritance taxes, or capital gains taxes in the Bahamas. The government does charge a Value-Added-Tax (VAT) of 7.5 percent for all transactions in the country. However, the first $250,000 of owner-occupied residential property is tax-free. For properties valued between $250,000 and $500,000, the tax rate is one-sixth of one percent of the market value. And for properties that sell for more than seven thousand dollars, the tax rate increases to 1.5% per annum.
When buying a property in The Bahamas, it is important to understand the property tax. The Bahamas Real Estate Association does not guarantee the accuracy of this information and makes no guarantees about the market value. The tax rates are based on the value of the land and any improvements.