Red Carpet, No Red Tape

Gone are the days when The Bahamas was only a tourist destination, where visitors were only allowed to enjoy our sun, sea and sand during their vacation.

With the passing of the International Persons Landholding Act, The Bahamas Government implemented an investor-friendly outlook to encourage non-Bahamians to acquire property in The Bahamas.

As a result, this Act has fueled the influx of foreign investment into residential, commercial and hotel properties causing a real estate and construction boom far exceeding any other booms in the history of The Bahamas.

International Persons Landholding Act

The Act has considerably eased the burden and process of foreign ownership of homes and real estate, as prior Government approval is not required for non-Bahamians to purchase residential properties of less than five acres.

Such acquisitions are, however, required to be registered with the Investment Board and The Central Bank of The Bahamas after the conveyancing of the property and a Permit will subsequently be issued.

A Permit to purchase property is first required if the freehold or leasehold property is undeveloped land of five or more contiguous acres, or not single-family or not to be used as single-family (i.e. commercial, industrial, resort, hotel or investment property).

The issuing of the Permit serves as the Government’s assurance that should the investor wish to sell the property, the proceeds of the sale can be repatriated.

Residency Status

The Government has also adopted an accommodating position on the granting of residency permits to non-Bahamian investors and homeowners.

Major international investors and owners of residences valued in excess of $500,000 are offered accelerated consideration for annual or permanent residency permits.

A Home Owners Residence Card is available to all non-Bahamian owners of residences, to facilitate the immigration formalities at all Bahamian ports of entry. This card entitles the homeowner, and the homeowner’s spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card and is renewable annually.

It does not, however, confer residency status.
The other, more desirable, option is to apply for permanent residency status, which does confer
residency status.

Boom Market

The purchasing of a home in The Bahamas has now become reality, rather than remaining merely a dream.

Construction of new homes of every shape, size and price tag are "emerging" from the land. In some housing and condominium developments, the demand for sales have been so high that most units are sold before the construction is completed. Meanwhile, vacant property values have quadrupled in highly sought after waterfront and gated community areas.

This trend has continued throughout the islands of The Bahamas – from Abaco to Long Island, and even the small cays throughout the Exumas.

Since 1992, more than US$2.0 billion in foreign capital has been invested into the resort and hotel industry throughout The Bahamas. Leading investors include Sun International with their $1.0 billion development of the Atlantis Resort on Paradise Island, and Hutchinson Whompoa’s investment of $550 million in the Our Lucaya Resort in Grand Bahama.

Likewise, international investment into commercial and industrial properties has been tremendous. In Freeport, Hutchinson Whompoa has invested more than $40 million into a new transshipment container terminal. More than 400,000 sq. ft. of new Class A office buildings have been built in Nassau, estimated at a total cost of approximately $80 million.

Even though the pool of office buildings has increased by almost 50%, the overall vacancy rates have dropped considerably to approximately 10%.

Purchasing Property

As with any other types of investments it is highly recommended to purchase property through a qualified professional.

The Bahamas Real Estate Association, an affiliate member of the National Association of Realtor (U.S.A.), currently has approximately 500 licensed realtors throughout The Bahamas. All realtors are qualified to advise you on the current real estate markets and are trained to provide you with details on all types of properties.

After you find your piece of paradise, then proceed to hire an attorney to review and approve the contract, verify the title of the property, complete the sale, and assist with the immigration applications and registration of the purchase. For properties up to a value of $500,000, legal fees for land transactions are at 2.5% of the purchase price.

Property Tax

Both Bahamians and non-Bahamians owning property
must pay annual property tax. Upon acquiring property in
The Bahamas, the Owner is required to file a declaration
of real property.

Payment of the property tax is due on or before December 31st of each year, but can be paid in quarterly installments. Late payment of property tax is subject to a 10% surcharge, and the property owner may also be subject to a fine.

Any unpaid property tax becomes a lien on the property and is transferable with the title to the property.

It’s Better in The Bahamas

Since 1992, international investors from all over the world have been attracted to The Bahamas, to bask in its beauty and to marvel in its natural wonders, but most importantly, to purchase their piece of our paradise.

The Bahamas Government is not only providing an investor-friendly environment, they are clearly inviting investors to make The Bahamas their second home (if not their first and only!).