Foreign Buyer's Guide: Steps to Buying Property in Bahamas

Foreign Buyer's Checklist Guide to Buying Property in The Bahamas

Buying property in The Bahamas is a straightforward process for international buyers, provided you understand the key requirements. This guide walks you through the essential steps, from early research to closing the deal and settling into your new property.

1. Understand The Basics

Can Foreigners Buy Property in The Bahamas?

Foreigners can buy, own, and resell property in The Bahamas without restriction, and the government actively welcomes international investment. The majority of real estate is held as freehold, meaning buyers own the property outright. Leasehold holdings, most often tied to Crown Lands (state-owned land), are generally used for agricultural or development purposes.

For non-Bahamian buyers, understanding these classifications is essential. Depending on the size, type, or intended use of a property, a government permit may be required, particularly for rental or commercial ventures.

2. Choose The Right Location

Popular Islands Include:
New Providence / Nassau - Vibrant city life with an international airport and full amenities.

Paradise Island - Luxury, resort-style living.
Grand Bahama - More affordable and relaxed.
Exumas / Abaco / Eleuthera – Scenic, remote islands ideal for vacation homes.

When deciding, consider proximity to beaches and marinas, access to airports, availability of utilities, and overall hurricane preparedness.

3. Budget & Costs

Here are the typical expenses to factor in:
Property Purchase - Varies by island, location, and property type.
Stamp Duty / Transfer Tax - 10% of the purchase price (usually split with the seller, unless agreed otherwise). Legal Fees - Approximately 2.5% of the purchase price.
Real Estate Agent Commission - 6–10% (paid by the seller, unless agreed otherwise
VAT - 10% (applied to legal and agent fees).
Permit Fees (if applicable) - $250–$500.
Property Tax - 0–1% annually.

4. Legal Requirements & Permits

As noted in Section 1, depending on the size, type, or intended use of a property, international buyers may be required to obtain government approval before finalizing a purchase. These approvals help ensure that foreign ownership aligns with Bahamian land use policies and investment regulations.

For All Foreign Buyers

Investments Board Registration – Required for properties over two acres or if you intend to rent the property.
Bahamas Investment Authority (BIA) Permit – Required if:

- The property is over two acres.
- The property will be rented out (short- or long-term).
- The property is intended for commercial development.

Certificate of Registration (Individuals):

Must be submitted to the Registrar General’s Office.
The fee is $250 USD.

Provides proof that the property has been properly recorded in your name.

Because these requirements vary depending on your property’s size and purpose, it is essential to work with a Bahamian attorney who can confirm which permits apply to your situation and ensure your application is submitted correctly.

5. Due Diligence

Before committing to a purchase, it is critical to work with a licensed Bahamian attorney who specializes in real estate. Your attorney will:

Conduct a thorough title search to confirm the property is free of liens, disputes, or encumbrances.
Review zoning laws and land use restrictions to ensure the property can be used as intended.
Confirm property boundaries with a certified land surveyor.
Ensure all contracts and supporting documentation are accurate, valid, and legally binding.

Thorough due diligence at this stage not only protects your investment but also helps avoid delays or complications later in the transaction.

6. Making The Offer

Offers are usually submitted in writing through your attorney or real estate agent.
A deposit of 10% of the purchase price is typically required and held in escrow.

7. Sales Agreement

The Purchase & Sale Agreement, prepared by legal counsel, outlines the price, terms, and closing date. Most transactions close within 30–90 days.

8. Payment & Financing

Currency: Bahamian dollar (BSD), fixed 1:1 with USD.
Payment Methods: Bank wire transfers are preferred.
Financing: Non-resident mortgage programs are available, typically offering up to 70% loan-to-value for properties under $1.5M.

Lenders generally require:

Valid ID
Two years of tax returns
Asset documentation
Credit report authorization
Property and insurance information

9. Closing Process

At closing, you’ll sign conveyance documents, settle any taxes or fees, and register the transfer of ownership.

10. After Purchase

Title registration is filed with the Registrar.
Register with Inland Revenue for property tax.
Set up utilities such as electricity, water, and internet.
Property management services are available if needed.

11. Renting Out Your Property

A permit is required from the Bahamas Investment Authority ($500 USD fee).
While The Bahamas has no income tax, VAT may apply to rental activity such as Airbnb.

12. Residency & Incentives

Permanent residency is available for investments of $750,000 or more.
Applications are fast-tracked for investments exceeding $1.5M.