Bahamas Property Buying Guide for Non-Residents

Foreigners can buy freehold property in the Bahamas without a general permit. A notable rule concerns size: purchases of small residential lots, generally up to a few acres, are straightforward, while larger holdings or commercial and development purposes need approval and registration with the Bahamas Investment Authority. Buyers should also register the purchase with the Central Bank for exchange-control purposes so that sale proceeds can later be repatriated.

Title systems on family islands can be complex, because land has historically been held in generational or commonage arrangements, so a careful title investigation matters more there than in Nassau. If you want to compare stock, see houses for sale in Bahamas, apartments for sale in Bahamas, land for sale in Bahamas and commercial properties for sale in Bahamas.

1. Agree the price and sign a sale agreement with a deposit, typically about 10%, held by the attorney or a brokerage escrow.
2. Appoint a Bahamian attorney, who must be qualified locally to complete the conveyance.
3. Your attorney conducts a title search and investigates ownership, particularly for family-island land.
4. Obtain any required Investments Authority approval for larger or non-residential purchases and file the Central Bank registration.
5. Order a survey and confirm that boundaries and setbacks match the plan.
6. Close by paying the balance, stamp duty and fees; the conveyance is executed and stamped.
7. Record the conveyance at the registry and set up property tax and insurance.

In the Bahamas the attorney is the conveyancer, escrow holder and tax adviser. They search title, advise on stamp duty and approvals, and register the deed. Choose one with recent buyer-side experience on your island.

A surveyor is advisable for coastal and island land, because setbacks and erosion affect what can be built. Agents typically charge around 5-6% on sales. If you plan to borrow, ask about mortgage options in Bahamas for foreigners and estimate repayments with the mortgage calculator.

• Chain of title, including whether the land is commonage, generation property or Crown land.
• Survey and plan, with confirmation that the lot matches the title description.
• Approval status for development, and any building permits or certificates of occupancy.
• Flood, hurricane and storm-surge exposure, and the availability and cost of insurance.
• Condo or community fees, reserve funds and special assessments for resort developments.
• Exchange-control registration so you can repatriate sale proceeds later.

The Bahamas has no income or capital gains tax for individuals, but transaction costs and annual property tax are significant. Treat the figures as approximate and verify them with your attorney.

Property ownership may support residency applications in the Bahamas. A home purchase above a stated value has historically made owners eligible to apply for permanent residence, and owners of lower-value homes can obtain an annual homeowner's card that eases entry and stays. Thresholds and conditions are set by the government and revised, so confirm current details with your attorney or the Department of Immigration.

Residency does not remove annual property tax, and does not change the stamp duty on purchase.

Visit the specific island and neighbourhood before buying. Nassau, Paradise Island, Abaco, Exuma and Eleuthera differ sharply on services, flights, healthcare and building costs. Ask the attorney how long title investigations are currently taking, and what typical delays are at the registry. For rental investments, test the numbers against realistic occupancy, resort fees and management costs rather than peak-season rates, and use the budget figures on lower-priced property in Bahamas to see how lower-priced stock compares.

• Failing to register with the Central Bank, which complicates repatriation later.
• Skipping a detailed title investigation on a family island.
• Ignoring hurricane insurance costs in the yield calculation.
• Assuming the 'no tax' reputation means low closing costs.
• Underestimating maintenance in salt-air conditions.