Buying Property in Bahamas

Bahamas encourages foreigners to buy a property on the islands. The International Persons Landholding Act Enacted in 1993 makes owning Bahamian property very simple. The process starts with the buyer registering the purchase with the Investment Board and paying a registration fee.

Foreigners can easily buy a single family home or vacant land without a permit. However, there are some cases where a permit is required. This is in case the property is undeveloped land of five acres or larger in size or it is not a private residence, or won’t be developed as such. Also, foreigners can lease or let their Bahamas property without permit unless for trade or business purposes.

If a permit is not obtained; given the choice of property meets the above criterion; the acquisition is rendered null and void. However, the purchaser can recover any money already paid in consideration of the acquisition.

Once the property is chosen, the title search fee of up to $500 is to be paid to the attorney. This is the legal price for the attorney who is responsible for verifying whether the property is good enough for purchase.

Also, the attorney sends a mandatory application is sent to Ministry of Finance for approval to purchase land on behalf of a non resident. Simultaneously, the owner should apply for the Annual Homeowners’ Residence Card. Then a down payment of 5 % to 10% of the property value is to be made. This amount is held and in case of defaults on payment, it is not to be returned.

Then a sales agreement is drafted by the attorney where the costs involved can go up to $500. After a green signal from the attorney about the readiness of property and agreement, the buyer pays the agreed amount to the buyer.
Upon transfer of property, a stamp duty is to be paid to the government.