There are always many questions posed to real estate brokers and agents by interested buyers. One of those questions is whether or not the advertised sales price is a “net” or a “gross” price. In answering that question, The Bahamas Real Estate Association regulations are:
*Rules Governing Sales
GROSS PRICES: A price given to a broker by an owner shall be deemed to be gross and the broker shall charge the regular commission on such price.
NET PRICE: Acceptance of net listings by brokers is not allowed.
There are several things purchasers must know when purchasing a property in the Bahamas.
1) The Bahamas government charges what is known as a “Stamp Tax” on all property conveyances. The duties are shared equally between the buyer and the seller; although there are some instances where other arrangements between both parties are made. Here is the chart showing the graduated duty rates:
- When the value of the consideration is less than or equal to $20,000, the rate is 4%
- When the value of the consideration is greater than $20,001 and is less than or equal to $50,000, the rate is 6%
- When the value of the consideration is greater than $50,001 and is less than or equal to $100,000, the rate is 8%
- When the value of the consideration is greater than $100,001, the rate is 10%
2) The Bahamas government may make an allowance for the first time home buyer to be exempted from the stamp duty on properties up to $500,000.00 if the property is to be used as a dwelling.
3) There are also annual property taxes collected. The rates are as follows:
*Rates of Taxes
The rates of tax on real property are as follows:
In respect of owner-occupied property:
- The first $250,000 of market value is tax exempt
- More than $250,000 and not exceeding $500,000 of market value is ¾%
- More than $500,000 and not exceeding $5,000,000 of market value is 1%
- More than $5,000,000 of market value is .25%
In respect of unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act:
- First $7,000 of market value is $100
- More than $7,000 of market value 1½%.
In respect of any other property:
- First $500,000 of market value is 1%
- More than $500,000 of market value is 2%
4) The government also makes provisions for persons interested in obtaining permanent residency. At this time, the minimum purchase amount to allow foreign investors to apply for permanent residence is $500,000.00 or $1.5 million for expedited residency.
I hope this will assist you in deciding on your investment here in our “Beautiful Bahama Land”.
* = Quoted directly from the Bahamas Real Estate Association Handbook
For more information about the listing in the photos used in this blog, feel free to contact Mario Carey or Dana Pinder at: