Government Taxes on Property Conveyances
2.5 % Government Tax on all real estate transactions under $100,000.
10% Government Tax on all real estate transactions over $100,000.
The stamp tax is generally split equally between the purchaser and the vendor. This is typical but is subject to change during negotiations if the buyer and seller agree to a different deal structure.
Real Estate Commissions
Real estate sales and rental commissions are typically paid by the vendor or landlord. This is typical but is subject to change during negotiations if the buyer and seller agree to a different deal structure.
Developed Property is 6% while undeveloped land is 10%.
Value Added Tax
A 12 % Value Added Tax (VAT) is charged on all goods and services. This includes legal work, real estate commissions or appraisals.
The information contained on this page is subject to change and is meant to be used as a guide only. When entering into any type of real estate transaction you should have legal representation. Bahamas Property Group is not responsible for any errors or omissions in the information contained on this website.
COMPLIANCE REQUIREMENTS TO TRANSACT PROPERTY IN THE BAHAMAS
To ensure that The Bahamas continues to be a trusted country for investing and conducting business, The Bahamas government passed legislation in May 2018 known as the Financial Transaction Reporting Act (FTRA). Under this act real estate brokers and developers are required to obtain and retain background information on each of our clients. Some of you may already be familiar with this process, known as Know Your Client/Customer (KYC), from your business dealings in countries like the United States, Canada and the U.K. The intention of KYC is to protect the investment grade of The Bahamas and ultimately our clients, promoting high ethical and professional standards that discourage criminal activity, namely anti-money laundering (AML) and countering the financing of terrorism (CFT).
As it relates to our industry, prospective real estate sellers and buyers will be required to complete a KYC form that captures his/her personal information, country of residence and business, sources of funds and proof of permanent address.
Should you have any questions regarding this process, please don’t hesitate to contact us at info(at)bahamaspropertygroup(dotted)com and we will be happy to assist.