Property Transactions

In New Providence, real estate agents charge a 10% commission on the sale of undeveloped property; 6% on developed
property–residential or commercial; and 10% for Family Island property–land, home or commercial. As of July 1, 2018, stamp duty on property conveyances or realty transfers was set at 2.5% on transactions valued at $100,000 or less, and 10% on transactions valued in excess of $100,000. VAT is not charged as transactions are subject to stamp duty. In property sales, the vendor and
purchaser each pay half the stamp duty unless otherwise agreed. Sellers generally pay commission, stamp duty and legal fees.
Sometimes property owners list a net sales figure, in which case the agent adds those charges to the price quoted to
prospective buyers.

Stamp duty on mortgages is payable at a rate of 1% on the amount borrowed. The Bahamas Bar Association follows a minimum scale fee for conveyances and mortgage transactions at 2.5% of the sale price plus out-of-pocket expenses. VAT is charged on buyers’ and sellers’ attorney fees and realtor fees. International Persons Landholding Act, 1993 Amended in 2007, The International
Persons Landholding Act made it easier for non-Bahamians and companies under their control to own property.

1. A non-Bahamian or permanent
resident who purchases or acquires an
interest in a condominium or property
to be used by him as an owner-occupied
property, or for construction of premises
to be used as an owner-occupied
property, must apply to the secretary
to the Investments Board (IB) to
register the purchase. Application for
Certificate of Registration Form I must
be filed with the Bahamas Investment
Authority (BIA), Office of the Prime
Minister. Contact BIA for a complete
list of the required documentation
that must accompany the application
along with the original receipt from
the Public Treasury showing payment
of the requisite fee of $250.

2. Upon receipt of the above, the
acquisition is registered and a
certificate of registration issued.

3. A permit to acquire property is required
if the property is undeveloped land
and the purchaser would become the
owner of two or more contiguous acres.A permit is also required if the nonBahamian intends to acquire land or an
interest therein by way of freehold or
leasehold, when the acquisition is not in
accordance with item.

4. Non-Bahamians who own homes in
The Bahamas may apply for an annual
homeowner’s residence card.* This
card entitles the owner, spouse and
dependent children to enter and
remain in The Bahamas for the
duration of the validity of the card
(one year). This facilitates entry–it
does not confer resident status in The Bahamas.

All applications for permits, Form 3, are to be submitted to BIA for consideration by the IB. If approved, a letter is issued and
payment of the requisite fee of $500 is paid at the Public Treasury and the original receipt returned to BIA. The permit is then
issued by the Secretary to the Board.

Fee schedule is as follows:

Permit ............................................................$500
The certificate of Registration..................$250
Annual homeowner’s
residence card ........................................$250
Certificate of registration or permit (with
acquisition documents) must be recorded at
the Registrar General’s Dept.
*Permanent residence may be granted if
certain conditions are met

Reprinted from the 2019 edition of the Bahamas Handbook -

Source from -The Bahamas Investor 2019

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