Buying Property in the Bahamas as a Foreigner

Who can buy property in the Bahamas?


Foreigners are permitted to buy property in the Bahamas without restrictions and the purchasers are eligible for an annual Home Owners Resident Card (residence permit).

Do the research


Investing in Bahamas real estate offers substantial potential due to the country’s stable political and economic environment, strategic location, and strong tourism sector. As one of the Caribbean’s most sought-after destinations, the Bahamas attracts a high volume of international tourists and expats, driving consistent demand for vacation homes, rental properties, and luxury real estate. The Bahamas’ proximity to the United States, combined with its favorable tax policies, including no capital gains, income, or inheritance taxes, makes it an attractive location for foreign investors looking to minimize tax liabilities.

The real estate market in the Bahamas is diverse, ranging from affordable properties to luxury beachfront homes, and the government supports foreign ownership of property, which adds security for international buyers. With an established tourism industry, especially in locations like Nassau, Paradise Island, and the Exumas, there are opportunities for profitable short-term rentals and long-term appreciation. The Bahamas’ natural beauty, high quality of life, and well-developed infrastructure further enhance its appeal as a real estate investment destination, offering a mix of financial returns and lifestyle benefits.

The Bahamas offers a variety of prime locations for real estate investment, catering to different types of investors, from those looking for luxury properties to those seeking rental opportunities. Some of the most desirable areas include:

  • Nassau & Paradise Island - The capital of The Bahamas, Nassau is a bustling urban center with a rich history and vibrant culture. It’s ideal for both residential and commercial real estate, with easy access to luxury waterfront homes, resorts, and condos. The close proximity to international airports makes it attractive to foreign investors​.
  • Exumas - Known for its stunning beaches and clear waters, Exuma is a popular choice for high-end vacation homes and luxury resorts. Its appeal to both tourists and investors is growing, particularly for those seeking private island properties or secluded beachfront homes.​
  • Abaco Islands - With its serene environment and strong tourist industry, Abaco is a great place for those looking to invest in rental properties or second homes. The islands are known for their upscale communities and beautiful coastal properties​.
  • Eleuthera - This island is perfect for those seeking tranquility and privacy. It’s becoming a hotspot for retirees and those interested in eco-tourism, with several luxury homes and cottages available along its pristine beaches​.
  • Grand Bahama - A hub for business and tourism, Grand Bahama offers a mix of real estate options, including beachfront properties, residential homes, and commercial investments​.

Where to find properties online:

Financing


Foreigners can obtain mortgage loans in The Bahamas, though the process can differ from that of a local resident. Several banks and financial institutions in the Bahamas offer mortgage financing to non-resident buyers, but these loans often come with stricter terms and conditions. Foreign buyers are typically required to make a higher down payment and the loan terms may be shorter than for local borrowers. Lenders will also assess the buyer’s financial stability and may require proof of income or assets. Interest rates for foreign buyers may also vary based on the financial institution and the buyer's profile​.

It's important to note that foreign buyers seeking mortgages in The Bahamas will usually need to engage with a local bank or mortgage broker familiar with the procedures for international investors. Additionally, legal and regulatory requirements, including registration under the International Persons Landholding Act for certain property types, must be followed​.

To ensure smooth navigation through the mortgage process, it's advisable for foreign buyers to consult with both a legal professional and a financial advisor in The Bahamas.

Due Diligence and Sales Contract 


Due diligence is a critical part of the real estate transaction process in the Bahamas. This involves thoroughly investigating the property to ensure that it is free of any legal issues, such as encumbrances, unresolved disputes, or claims that could affect the purchase. A key aspect of this process includes verifying the title of the property and ensuring that the seller has the legal authority to sell it. It's also important to check for any zoning restrictions, environmental issues, or specific land-use regulations that could impact the property's value or potential uses​.

In the Bahamas, the closing process typically involves the services of a local law firm, which handles the preparation of legal documents, the title search, and the final conveyance. Buyers should work with a qualified lawyer, who will review all the documentation and provide an opinion on the property title, often acting as a form of title insurance. While not mandatory, engaging a local attorney can help ensure that the transaction is conducted according to Bahamian legal standards and that all necessary steps are followed​.

In addition to hiring a lawyer, buyers will also need to factor in costs such as government stamp duties, VAT on certain services, and other fees associated with the transaction

Property Buying Costs and Taxes in the Bahamas


Transaction Costs
    Who Pays?
Property Transfer Tax 2.50% - 10.00% buyer
Legal Fees 1.50% - 2.50% buyer
Notary Fees 0.00% buyer
Real Estate Agent Fee 6.00% - 10.00% seller
Costs Paid by Buyer 4.00% - 12.50%  
Costs Paid by Seller 6.00% - 10.00%
ROUNDTRIP TRANSACTION COSTS 10.00% - 22.50%
Source: Global Property Guide, PWC, KPMG

Footnotes to Transaction Costs Table


The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.

Stamp Duty:

Stamp Duty must be paid upon delivery of the property. Stamp Duty is typically split between buyer and seller. Bahamians and Non-Bahamians now pay the same amount of Stamp Duty. In the past, Non-Bahamians used to pay twice the amount rendered by Bahamians. . Fees are as follows:

STAMP DUTY

PROPERTY VALUE IN (US$) RATE
Up to US$100,000 2.50%
US$100,001 - US$300,000 4.00%
US$300,001 - US$500,000 6.00%
US$500,001 - US$700,000 8.00%
US$700,001 - US$1,000,000 9.00%
Over US$1,000,001 10.00%

Legal Fees:

Each party pays for their own lawyer. Legal fees are determined according to the property's value:

LEGAL FEES

PROPERTY VALUE, (US$) RATE
Up to US$500,000 2.5%
US$500,000 - US$1,000,000 2.0%
US$1,000,000 - US$5,000,000 1.0%
Over US$5,000,000 0.5%

Real Estate Agent's Fee:

The real estate agents' fees are set by The Bahamas Real Estate Association. The fees are determined as follows:

REAL ESTATE AGENT'S FEES

PROPERTY CATEGORY RATE
Developed Property 6%
Undeveloped Property (Vacant Land) 10%

Subscribe to Global Property Guide

Access up-to-date real estate data and statistics.

Get behind the paywall and more...

Get the data behind 80+ countries for $49 per month.
Latest Market Reports
Rental Yields
House Price Indices
Rent Price Indices
Square Meter Prices
Median Property Prices
Median Rent Prices
Mortgage Rates
Property Taxes
Quarterly Trackers
Quarterly Market Overviews

Subscribe to Global Property Guide

Access up-to-date real estate data and statistics.

This page requires a Professional plan

Get the data behind 80+ countries for $99 per month.
Historical & Current Rental Yields
Historical & Current Purchase Prices
Historical & Current Rent Prices
Historical & Current m2/sqft Prices