Taxes and fees in the Bahamas are generally low, with no income or capital gains taxes. However, there are some fees to be aware of. In most cases, a real estate agent and legal fees will be charged. There is also a Value Added Tax (VAT) of 7.5 percent on property conveyances. Customs duties also generate revenue for the Bahamas government, and are generally between 30 percent and 35 percent.
The tax system is one of the most beneficial factors to consider when investing in real estate in the Bahamas. Unlike many other Caribbean nations, the Bahamas offers a favourable tax regime. Property buyers can enjoy the benefits of world-class shopping, golf, and spas. They can also find some of the most luxurious homes in the region.
Mortgages can be obtained from major banks in the Bahamas. Most banks offer mortgages to Bahamians and other permanent residents. However, non-Bahamians who buy residential properties must obtain a permit from the Bahamas Investment Authority. To obtain this permit, the investor must demonstrate their commitment to develop the property. If the buyer is looking to build a large project, it may be a better option to invest in a company rather than individual properties.
Once a prestigious investment location, the Bahamas has opened its doors to foreigners. Historically reserved for the super-rich, the region is now more accessible to investors with strong rental yields. The country’s low crime rate, international accessibility, and relaxed immigration policy make the Bahamas attractive to foreign investors. And despite the recent economic downturn, the country’s real estate and tourism sectors are both thriving.
The tax system in the Bahamas is transparent and secure. A buyer’s attorney will check the validity of the property’s title. If the title is invalid, the property’s marketability will decrease. Additionally, bahamas luxury real estate must make sure that any and all information about the property is true and up-to-date.
Non-Bahamians can invest in the Bahamas through an annual residency card. This residence card enables the holder and his or her family to live in the country. However, the application process is expensive and must be accompanied by the necessary information. Applicants must also be of good character to qualify for this residency card.
Once the buyer has purchased the property, several fees are required before the property is officially registered. These fees should not exceed 0.5% of the value of the property. However, the fees may increase as the property value grows. It is advisable to consult with a local attorney when making an application for a property in the Bahamas.