Bahamas real estate guide to permits, residency and more

In 1993, the International People’s Land Tenure Act was launched to encourage foreigners to buy a second home in The Bahamas. And it couldn’t be easier. If a foreigner purchases a single-family home or vacant lot to be used in the construction of that home, then they no longer need to obtain a government permit prior to purchase. You just need to register the acquisition later with the Board of Investments. Permanent residents of the Bahamas and foreigners who inherit property in the Bahamas do not have to obtain a permit before acquiring land, but must register afterwards.

However, there are cases where a Bahamas real estate permit will be required. First, if the property is undeveloped land and is five acres or more in size. Second, if the property is not a private residence or is not intended for development as such, a permit is required.

When dealing with mortgages, the law is not intended to get in the way. In effect, it states that licensed banks, trusts, and insurance companies that acquire an interest in or take possession of a property by virtue of a court order must register that acquisition. An acquisition by foreclosure under a mortgage or of land acquired by an authorized foreign state will not require a permit, but must be registered.

With leases, foreigners are not required to obtain permits, register leases or lease agreements, unless they are for commercial or commercial purposes and the term can exceed 21 years.

The government has not only made it easier for foreigners to own a second home, but has also included a condition that a foreigner no longer pay a double rate of stamp duty; now you pay the same flat rate as a Bahamian.

Stamp duty is a tax that is paid on delivery of all real estate based on value as follows: Stamp duty starts at 2% for real estate valued at less than $ 20,000 USD, but increases to 10 % for real estate over $ 250,000 USD. The payment of this tax is usually divided equally between the seller and the buyer. There is also a 1% stamp tax on mortgages paid by the borrower. The usual practice in the Bahamas is that the tax is shared equitably between the buyer and the seller, unless otherwise agreed.

If you enter the Bahamas, you must complete a boarding and disembarking pass which is usually provided by your travel agent, the airline or the ship you are traveling on. No visa or passport is required if you are a Canadian citizen or UK national, unless the stay exceeds three weeks. US citizens traveling on scheduled airlines, previously authorized to return at US Customs and Immigration at Nassau International Airport also do not require a visa (although proof of citizenship is required).

You are allowed a maximum stay of eight months with the proper documents including a return ticket and evidence of financial support. If you want to stay longer, you must apply for temporary residence to the Director of Immigration. However, if you want the Bahamas to be your permanent residence through a real estate investment in the Bahamas, you will need to apply for permanent residence. If you plan to work in the Bahamas, you must apply for a separate work permit.

There are different levels of residence. The first is permanent residence that requires the purchase of a residence of more than $ 500,000, subject to a one-time payment of $ 10,000. Another level of residency is that of an owner where no minimum purchase is required, however, your card must be renewed every year for a fee of $ 1000. And the last level of residence is an annual residence where, again, it is not required. a minimum purchase, but must renew each year for a fee of $ 1000.

Owning real estate in the Bahamas sounds spectacularly easy and that’s because it is. But there are a few things to keep in mind when making an investment of this size. Here are some guidelines to help you buy property in the Bahamas:

-Think about the location: Depending on where you buy, prices will vary. On major islands like New Providence and Grand Bahama, prices are more than double those in Florida. If you are looking for an investment property, these would be good options. If you are looking to buy a quiet retreat, consider something on the familiar islands, as they are less expensive.

-Take a look: Once you have decided where you would like to buy a property, the next step is to take a look at more than one property so that you can get a general picture of the market.

-Take a second look: It’s a good idea to have a certified professional review the property in case there are any hidden surprises!

So whether you’re making an investment or buying a vacation home, the Bahamas will welcome you with open arms. All you have to do is make your entrance to paradise!