Frequently Asked Questions About Real Estate in The Bahamas

We’re seeing moves for growing households, job relocation, retirement downsizing, lifestyle upgrades, and life changes (e.g., divorce). Whatever your reason, our “how to sell your home in The Bahamas” plan adapts to your timing, privacy needs, and price goals to ensure your sale process is seamless and stress-free.

If the property is prcied correctly, in show-ready condition, and there is good neighborhood demand, then a sale is usually contracted within 30-60 days. Once contracted, depending on the contingencies the actual sale may take an additional 90-120 days to complete.

Focus on minor improvements with high-ROI - updates like lighting, hardware, landscaping, and small kitchen/bath refreshes. Major renovations rarely return full value before sale; we’ll advise which improvements matter most for buyers in your specific Bahamas neighborhood.

First impressions matter. Prioritize curb appeal, decluttering, minor repairs, and neutral paint; then invest in professional photos and video. Highlight unique island features—beach access, boating, ocean views, and outdoor living spaces that appeal to local and international buyers.

Yes - There are two types. Usually there is an agents' open house to allow exposure of the property to cooperating agents withor without prospective buyers. Open house events for prospective buyers are rare as sellers prefer to only open their properties for touring to qualified buyers together with their agent. With these tours, the agent working with the prospective buyer is given a better firsthand neighborhood experience which helps drive stronger interest.

Yes - When you purchase your property, your attorney will obtain a Certificate of Registration. This certificate allows you to repatriate your entire proceeds of sale (including any profit) after the completion of the sale of your property.

Transfer Tax (VAT) – Determined as a percentage of the purchase price. Where the buyer is purchasing in the capacity of:-

• A first-time homebuyer where the individual is a citizen of The Bahamas:- 4% where the value exceeds $300,000 but does not exceed $500,000.
• An individual who is a citizen of The Bahamas or is a permanent resident with the right to work in The Bahamas:- 2.5% where the value is less than $100,000; 4% where the value exceeds $100,000 but less than $300,000; 6% where the value exceeds $300,000 but less than $500,000; 8% where the value exceeds $500,000 but less than $700,000; 9% where the value exceeds $700,000 but less than $1,000,000; and 10% where the value exceeds $1,000,000.
• An individual who is otherwise a foreign person, 10%.
• A Bahamian company in which all shares are legally and beneficially owned by citizens of The Bahamas or permanent residents with the right to work in The Bahamas, and that is used solely by the owner for holding real estate property and does not otherwise conduct business:- 2.5% where the value is less than $100,000; 4% where the value exceeds $100,000 but less than $300,000; 6% where the value exceeds $300,000 but less than $500,000; 8% where the value exceeds $500,000 but less than $700,000; 9% where the value exceeds $700,000 but less than $1,000,000; and 10% where the value exceeds $1,000,000.

• Any other Bahamian company or other Bahamian entity:- 2.5% where the value is less than $100,000; and 10% where the value exceeds $100,000.

Typically, the Transfer Tax is shared equally between the buyer and the seller unless otherwise agreed upon between the seller and buyer.

Legal Fees - Each party pays its respective legal fee and 10% VAT thereon. Typically, the legal fee for a party will not exceed 2.5% of the purchase price.

Real Estate Commission – Brokerages charge 6% of the purchase price for developed land and 10% for undeveloped land. Typically, the seller pays the real estate commission unless otherwise agreed between the buyer and seller.

Yes - we strongly recommend hiring a local attorney to represent your best interest in purchasing and selling a property. When purchasing, the attorney will undertake a title search of the property, provide you with an opinion on the title, and rectify any outstanding title and lien issues. The attorney's opinion on the title is similar to obtaining title insurance in that the attorney is liable for any defects subsequently found. The law firm's indemnity insurance covers the attorney's opinion of title. Once your attorney proves the title to be good and marketable, your attorney will review and perfect the conveyance to ensure the proper title is passed onto you to complete the sale. Similarly, when selling, the attorney will answer all requisitions on title and resolve any outstanding liens to allow the sale to complete.

The Government assesses and charges annual Property Tax (aka Real Property Tax) based on the following:

• For owner-occupied residences on the part of the value that does not exceed $300,000 – exempt
• On the part of the value that exceeds $300,000 and does not exceed $500,000 – 0.625%
• On the part of the value that exceeds $500,000 - 1% ($120,000 annually cap)



For Undeveloped Land:

• The first $7,000 of value - $100
• On the part of the value that exceeds $7,000 and does not exceed $75,000 - 1.5%
• On the part of the value that exceeds $75,000 and does not exceed $500,000 - 0.75%
• On the part of the value that exceeds $500,000 - 2%



In respect of any other property (i.e. commercial, multi-family investment, etc.):

• On the part of the value that does not exceed $500,000 – 0.75%.
• On the part of the value that exceeds $500,000 and does not exceed $2 million - 1%.
• On the part of the value that exceeds $2 million – 1.5%.



Exemptions on specific properties exist, so any owner seeking clarification should contact the Department of Inland Revenue.

Citizens of The Bahamas are exempt from property tax on undeveloped land throughout The Bahamas and properties owned on the Family Island.

Under the Real Estate (Brokers & Salesmen) Act, 1995, the Bahamas Real Estate Association (BREA) licenses all Brokers and Salesmen in The Bahamas. Any person wishing to practice real estate lawfully must be licensed to provide such service and earn a commission or fee.

In the 1990s, BREA and the National Association of Realtors signed a Bilateral Agreement that effectively acknowledges both countries' licensing and immigration laws while establishing a business protocol that allows a licensed association member in one country to refer business to a licensed association member in the other country. No international real estate agent can practice real estate in The Bahamas without a valid BREA license and the proper Bahamas immigration status.

Morley licensed agents understand accessibility, zoning, build quality, insurance nuances, and the simplest things like how the breeze hits your patio at sunset. Our agents live and work here – offering insights that no algorithm can match. When you work with us, you gain true local knowledge and trusted advocacy.

Yes, any person wanting to build on or renovate a property must first submit architectural plans (including structural, mechanical, electrical and plumbing) for review and approval by the Town Planning Board and then obtain a Building Permit from the Ministry of Works.

There is no personal or corporate income tax, capital gains tax and inheritance tax assessed by the Bahamas Government. There is no sales tax on goods, but Value Added Tax (VAT) on goods and services.

The Bahamas Government's primary source of revenue is duty charged on the landed cost (i.e. first cost plus shipping) of all items brought into the country. Importation duty ranges from 0% to as much as 220%. The average duty paid on most imported goods is 35%. The Government then assesses VAT on the landed cost plus the importation duty.

Obtaining residency in The Bahamas does not entitle you to work in the country. International buyers must apply to the Ministry of Immigration to receive the appropriate work status.

The following are some of the areas targeted for international investors:

• Touristic resorts

• Upscale residential development – condominiums, timeshares and second-homes

• Information and data processing services

• Assembly industries

• High-tech services

• Light manufacturing for export

• Captive insurance

• Agro-industries

The following are areas reserved explicitly for Bahamians:

• Wholesale and retail operations

• Commission agencies engaged in import/export trade

• Real estate and domestic property management agencies

• Domestic newspaper and magazine publications

• Domestic advertising and public relations firms

• Security services

• Domestic distribution of building supplies

• Construction companies

• Personal cosmetic/beauty establishments

• Commercial fishing

• Auto and appliance service operations

• Public transportation

• Landscaping

The above lists are not exhaustive, and investors interested in areas not mentioned are encouraged to bring their interest to the attention of the Bahamas Investment Authority.

Morley is recognized as one of the leading real estate agencies in The Bahamas — leading in both residential and commercial sales and leasing. Our clients choose us for our integrity, results, and reputation as one of the largest and most trusted locally owned real estate agencies in the islands. Our reputation in The Bahamas, is built on results and referrals.