Buyer's Guide
Our turnkey real estate service is designed to provide you with all the right resources to locate, inspect, negotiate and complete on the property that meets your lifestyle needs and investment goals.
In the buying process everything can potentially be negotiated except for the following fees and taxes.
The Government Stamp Tax on Property Conveyances
The Government Stamp Duty (Tax on the conveyance of real property). This is a graduated Tax. The total amount of the Tax is calculated as follows:
- When the price is less than or equal to $20,000, the rate is 2%
- When the price is greater than $20,000 and is less than or equal to $50,000, the rate is 4%
- When the price is greater than $50,000 and is less than or equal to $100,000, the rate is 6%
- When the price is greater than $100,000 and is less than or equal to $250,000, the rate is 8%
- When the price is greater than $250,000, the rate is 10%
The usual practice in the Bahamas is for the tax to be shared equally between buyer and seller unless otherwise negotiated between both parties.
Rates of Taxes
The rates of tax on real property are as follows:
In respect of owner-occupied property: The first $250,000 is tax exempt.
- On that portion in excess of $250,000 and less than $500,000 the rate of tax is ¾% of the market value of the property;
- On the portion in excess of $500,000 the tax rate is 1% of the market value of the property.
In respect of unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act:
- Upon that part of the market value that does not exceed $3,000 a fee of $30.00.
- Upon that part of the market value which exceeds $3,000 but does not exceed $100,000 a tax rate of 1% per annum of the market value of the property.
- More than $100,000 of market value 1½%.
In respect of any other property:
- Upon that part of the market value that does not exceed $500,000 a tax at the rate of 1% per annum of the market value;
- Upon that part of the market value in excess of $500,000 a tax at the rate of 2% of the market value of the property.
If the tax is not paid on or before the last day the tax becomes due, a 10% surcharge is added.
Exemptions
Property owned by Bahamians and situated in the Family Islands is exempt from property tax.
Unimproved property owned by Bahamians, meaning property without physical additions or alterations, or any works benefitting the land which have not increased the market value thereof by $5,000 or more.