Buying in
The Bahamas

As your dedicated buyer or seller agent, I am committed guiding you through every step of the transaction journey, ensuring a seamless experience. To help you navigate the process, please download my updated Purchasing Guide PDF for 2025, packed with essential information on purchasing in The Bahamas. Below, you'll find an estimated breakdown of the closing costs, which may vary based on your specific contract.

Purchasing Guide 2025

Closing Costs

Legal Fees

Each party normally pays their own legal fees which on average is 2.5% (plus 10% VAT)

*Subject to agreement with your lawyer

Value Added Tax (VAT)

Non-Bahamians pay 10% no matter the value and is usually shared between buyer and seller unless specified in contract. Bahamians please see breakdown per value.

Commission

This is normally paid by the seller unless specified in the contract. (plus 10% VAT)

Developed Properties 6%
Undeveloped Properties 10%

Additional Information...

Property Taxes

The payment of Real Property Tax is required by Law in The Bahamas. The bill is due and payable once produced and must be paid in accordance to the Real Property Tax Act to avoid interest.

Annual Real Property Taxes are capped at $150,000.

*See Rates in PDF above

Permanente Residency

The threshold for Permanente residency in The Bahamas is $1,000,000 investment for applicants who are investors or financially independent. This does not include the right to work in The Bahamas (depending on your approvals) You may also apply for a Homeowners card which allows owners extended stays.

Estimated Timeline

We advise roughly 90 days or so to close. BIA (Bahamas Investment Authority) is needed for all foreign investments, this board only meets once a month and must approve, which roughly takes 6 weeks.

Title Insurance

If interested, this is the strongest form of protection for land and homeowners. Your lawyer may be able to assist you with this.

Typical Payment Breakdown

A typical sale, called a "Gross Sale", assumes that the vendor (seller) will be responsible for the payment of:

The Real Estate agent's commission. The commission on the sale of developed property is 6% of the gross sales price. The commission on the sale of the undeveloped property is 10%.
One half (1/2) of the Government Value Added Tax (VAT)
The vendor's legal fees. Legal fees on a conveyance of property are usually 2.5%.

The Purchaser will be responsible for:

1/2 of the VAT as set out above, the purchaser's legal fees as detailed above.
Recording fees on the conveyance and other closing documents which need to be recorded.
Payment of the permit under the International Persons Landholding Act, if applicable.
In the vent that the sale is a "Net Sale" the purchaser would be responsible for payment of all the above mentioned fees (both vendor and Purchaser).

Insurance

Depends on your location, elevation, and building materials. Home Owner's Insurance typically covers the replacement costs which on Elbow Cay are anywhere between $800-$1500 per sq. ft.

Buying in The Bahamas