Buying Bahamas Real Estate
If you’re interested in buying real estate in the Bahamas, it’s important to understand the land laws in this Caribbean nation. Bahamian land law is ancient, and the process of buying and selling property is no different. It’s customary for real estate transactions to be conducted with the assistance of a Bahamian attorney or counsel. An attorney will act on the client’s behalf, following instructions both verbally and in writing. A lawyer will handle the details of the transaction and arrange completion.
In addition to being one of the world’s premier tourist and business destinations, the Bahamas has a tax regime that is investor-friendly and promotes real estate investment. The government promotes financial services and tourism, and aims to promote consistent growth in the real estate industry. In October 2002, the Bahamas government established the ministry of financial services to streamline property purchasing procedures. That move brought forth a new era of streamlined property purchases and sales in the country.
If you’re not a Bahamian, you will likely have to use bahamas real estate your home country’s financial institution for financing. However, there are more than 300 international banks in the Bahamas that can facilitate interbank transfers. Once the transaction is completed, the balance of the purchase price should be paid in full. Those involved in the transaction should keep all of their bank documents for application purposes and due diligence. However, you must make sure you can prove your non-Bahamian status before purchasing Bahamas real estate.
Besides being a tax-free zone, the Bahamas are a desirable destination for second-home ownership and investment purposes. The country’s stable economy is an additional incentive for Americans to purchase property there. Despite its low cost of living, many foreign buyers enjoy the country’s favorable tax regime and thriving tourism industry. You can also enjoy beautiful, resort-style living, which is especially popular for investors. And while the Bahamas might be a tropical paradise, it is still a good place for Americans to buy real estate.
Among the most sought-after destinations in the Bahamas are Nassau and Grand Bahama. These two islands offer a range of real estate options, ranging from lively condominiums to waterfront estates with deep water dockage. Whether you’re interested in natural beauty, or a bustling lifestyle and an abundance of amenities, you’ll find what you’re looking for in Nassau. You’ll be glad you did.
While demand for residential properties in the Bahamas has stabilized after the global financial crisis, there are many factors that are contributing to a drop in sales. Firstly, the government has recently raised the threshold to obtain permanent residency – to US$750,000, equivalent to 22.1% of GDP – in an attempt to attract ultra-high-net-worth individuals. Secondly, the housing market has recovered since Hurricane Dorian, according to Ryan Knowles, CEO of MAISON Bahamas luxury brokerage.
A person who buys property in The Bahamas must file a Declaration of Real Property Form in order to be eligible for the property tax. To do so, the owner must sign the document in front of an authorized person (such as a magistrate, registered medical practitioner, bank officer, minister of religion, or notary public). Lastly, the land must be assessed according to the statutes and the valuation of the property. The Chief Valuation Officer may retroactively assess a property up to ten years after it is purchased. Once the assessment has been made, the property owner will be notified five days after publication.