Purchasing a property in the Bahamas can be expensive, especially when it comes to lawyers and realtors’ fees. But with the passage of the International Persons Landholding Act, the process of buying foreign property is becoming easier and more affordable. With just a few exceptions, foreign property buyers need not obtain a permit when buying residential properties less than five acres in size. They must simply register the property with the Investment Board and Central Bank after completing the transaction.
The Bahamas Property Fund is a real estate investment trust that invests in three commercial properties in The Bahamas, including the Bahamas Financial Centre and the Providence House. The funds buys commercial property with tenants from many different industries. Shares of the fund trade on the Bahamas International Securities Exchange under the symbol “BPF.” lyford cay real estate The fund’s investments are managed by the Royal Fidelity Bank and Trust. It has nearly $2 billion in assets under management and administration.
Investors looking to purchase real estate in the Bahamas may consider the Bahamas Property Group. The company’s specialists have years of experience in the country’s real estate market and can provide relevant information. Its staff of experienced mortgage brokers will walk you through your options and answer any questions you may have about the financing process. In addition, the Bahamas Property Group is a one-stop shop for all of your real estate needs.
The Bahamas offers an ideal lifestyle, with beautiful scenery and friendly locals. Its government policy encourages real estate investment and a business-friendly environment. With its focus on financial services and tourism, the government is working toward consistent growth in the real estate sector. The government recently introduced a ministry of financial services that aims to streamline the process of purchasing a property in the Bahamas.
The Bahamas property market has experienced a significant correction since the financial crisis in 2008. Some areas saw a fall of as much as 60%. After the hurricane Dorian, however, the housing market has begun to stabilize. As a result, the rental yields are moderate to good. This makes Bahamas property investment attractive to foreign investors.
There are some tax implications when purchasing real estate in the Bahamas. Most buyers and sellers must pay Value Added Tax (VAT) on the property purchase, which amounts to approximately 10% of the property’s market value. This tax is borne equally by the buyer and seller. If the property is owned by a foreigner, the tax will be lowered to one-half of the amount in taxable value.
The real estate tax rates vary by property type and value. The value of the land and improvements is used to determine the rate. Property tax exemptions are not automatic and must be applied for.