Bahamas Real Estate Guide to Permits, Residency and More

Author: Ester Napoli

Article:
White sand beaches, clear blue waters, tax breaks, real estate
and property; the Bahamas never looked so good. And yes, I said
real estate. Bahamian real estate is hotter than ever.

In 1993, the 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 the
construction of such a dwelling, then he no longer needs to
obtain a permit from the Government prior to the purchase. He
only needs to register the acquisition later with the
Investments Board. Permanent residents of the Bahamas and
foreigners who inherit property in the 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 the property is undeveloped land
and of five acres in size or larger. Secondly, if the property
is not a private residence, or it is not intended for
development as such, a permit is needed.

In dealing with mortgages, the 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 the term can exceed 21 years.

Not only has the 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 the same single rate as a Bahamian.

The stamp duty is a tax that is payable on the delivery of all
real property based on the 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 the seller and the buyer. There
is also a 1% stamp duty on mortgages paid by the borrower. The
usual practice in the Bahamas is for the tax to be shared
equally between buyer and seller unless otherwise agreed upon.

If you are entering the Bahamas, you must fill out an
embarkation-disembarkation card which is usually provided by
your travel agent, the airline, or the ship you are traveling
on. A visa and passport is not required of you if you are a
Canadian citizen or subject of the United Kingdom unless the
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).

You are allowed a maximum stay of eight months with proper
documents which includes a return ticket and evidence of
financial support. If you would like to stay longer, then you
have to apply for temporary residency to the Director of
Immigration. If, however, you would like to make the Bahamas
your permanent residence by way of Bahamas property investment,
then you will have to apply for permanent residency. If you plan
on working in the Bahamas, a work permit must be applied for
separately.

There are different levels of residency. The first is permanent
residence which requires a purchase of a residence of more than
$500,000, subject to a $10,000 one-time payment. Another level
of residence is that of a homeowner where no minimum purchase is
required, however, your card must be renewed every year for a
fee of $1000. And the last level of residence is an annual
residence where, again, no minimum purchase is required but you
must renew every year for a fee of $1000.

Owning Bahamas real estate sounds spectacularly easy and that’s
because it is. But there are some things to keep in mind when
making an investment of this size. Here are a few guidelines to
help you out when buying Bahamas property:

Think location: Depending where you buy, prices will
vary. On the main islands such as New Providence and Grand
Bahama, prices are more than double the prices in Florida. If
you’re looking for an investment property, these would be good
choices. If you’re looking into buying a quiet retreat, consider
something on the family islands as they are less expensive.

Have a look: Once you have decided where you would like
to buy a property, the next step is to have a look at more than
one property so you can get an overall picture of the market.

Take a second look: It’s a good idea to get a certified
professional to look over the property just in case there are
hidden surprises!

So whether you’re making an investment or buying a vacation
home, the Bahamas will welcome you with open arms. All you have
to do is make your ticket to paradise!

About the author:
One of my passions is traveling and the one place I fell in love
with was the Bahamas; the white sand, clear waters, friendly
environment. It is paradise on earth. I enjoy all aspects of the
Bahamas; the culture, the history, the countless sports and
activities to keep you busy, and of course, the fabulous
weather. See my website: http://www.gloriousbahamas.com/
href="http://www.gloriousbahamas.com/">Glorious Bahamas Real
Estate.