White sand beaches, clear blue waters, tax breaks, real estate and property;
Bahamas never looked so good. And yes, I said real estate. Bahamian real estate is hotter than ever.In 1993, International Persons Landholding Act was put into motion to encourage foreigners to purchase a second home in The Bahamas. And it couldn’t be simpler. If a foreigner buys a single family dwelling or vacant land to be used in construction of such a dwelling, then he no longer needs to obtain a permit from Government prior to purchase. He only needs to register acquisition later with Investments Board. Permanent residents of Bahamas and foreigners who inherit property in Bahamas don’t have to obtain a permit before acquiring land but must register afterward.
However, there are cases where a permit will be needed for Bahamas real estate. First, if property is undeveloped land and of five acres in size or larger. Secondly, if property is not a private residence, or it is not intended for development as such, a permit is needed.
In dealing with mortgages, act is not meant to be a road block. In fact, it provides that licensed banks, trust, and insurance companies who acquire an interest in or take possession of property under a court order must register that acquisition. An acquisition by way of 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 letting agreements unless they are for trade or business purposes and term can exceed 21 years.
Not only has government made owning a second home easy for foreigners, they have also included a condition so that a foreigner no longer pays a double rate of stamp duty; he now pays same single rate as a Bahamian.
The stamp duty is a tax that is payable on delivery of all real property based on value as follows: Stamp duty starts at 2% for real estate valued under $20,000 US, but increases to 10% for real estate over $250,000 US. Payment of this tax is usually shared equally between seller and buyer. There is also a 1% stamp duty on mortgages paid by borrower. The usual practice in Bahamas is for tax to be shared equally between buyer and seller unless otherwise agreed upon.
If you are entering Bahamas, you must fill out an embarkation-disembarkation card which is usually provided by your travel agent, airline, or ship you are traveling on. A visa and passport is not required of you if you are a Canadian citizen or subject of United Kingdom unless stay exceeds three weeks. U.S. citizens on regularly scheduled airlines, pre-cleared for return at U.S Customs and Immigration at Nassau International Airport also do not require a visa (though proof of citizenship is required).
