Guide to Property Taxes in Bahamas
Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 0% | 0% | 0% |
The Bahamas lacks any form of taxation on income, sales, estates, or inheritances. The only direct tax is a real property tax.
Income Tax
Personal Income Tax
There is no rental income tax in the Bahamas.
Capital Gains Tax
There are no capital gains taxes in the Bahamas.
Business License
Business licenses are required when leasing property in the Bahamas. Renewed annually, license fees may cost anywhere from US$250 to US$1,250 or even more as the applicable rates depend on the profits.
Buying and Selling Costs/Taxes
| Transaction Costs | ||
| Who Pays? | ||
| Property Transfer Tax | 2.50 - 10.00% | buyer |
| Legal Fees | 1.50% - 2.50% | buyer |
| Notary Fees | 0.00% | buyer |
| Real Estate Agent Fee | 6.00% - 10.00% | seller |
| Costs Paid by Buyer | 4.00% - 12.50% | |
| Costs Paid by Seller | 6.00% - 10.00% | |
| ROUNDTRIP TRANSACTION COSTS | 10.00% - 22.50% | |
| Source: Global Property Guide | ||
Property Holding Tax
Real Property Tax
Real property taxes are imposed on the assessed market value of the property. The tax rates vary depending on the property's classification and value.
|
TAX ON OWNER-OCCUPIED PROPERTIES |
|
| TAX BASE, US$ | TAX RATE |
| Up to US$300,000 | 0% |
| US$300,000 - US$500,000 | 0.625% on value over US$300,000 |
| Over US$500,000 | 1% on all value over US$500,000, with a ceiling of $120,000 |