The United States, Canada and Britain continue to dominate the market for luxury residential properties, but a recent surge in Bahamian real estate purchases suggests that local buyers are starting to come on board as well. While the vast majority of international buyers bahamas real estate are from Texas and Canada, there are also some who hail from California and the UK. Below are a few factors to consider when buying real estate in The Bahamas. And, as a reminder, the market is still extremely competitive.
For non-Bahamians, the land tax is seven percent per year. This is only applicable to undeveloped land that is held for at least two years. Nevertheless, this rate is a great incentive to develop land. If you are a non-Bahamian, you may be able to obtain an exemption from paying the tax if you are planning to develop a subdivision on the land. You should note that a non-business lease can last up to 21 years.
When purchasing a Bahamas real estate property, it is important to know your rights and responsibilities. As a buyer, you are entitled to negotiate the terms of your property purchase. The Bahamas Real Estate Association has an extensive handbook that helps buyers, sellers, and realtors sell property in the country. It is a must-read for any buyer considering purchasing a property in The Bahamas. This guide is also useful for those looking to sell their real estate in The Bahamas.
If you are not a Bahamian, you can still purchase a house in the country. It is possible to buy a home that is developed, but there is a legal process to follow. You should work with a lawyer, such as Robert Van Wynen of the Alexiou, Knowles & Co. law firm in Nassau and Abaco. Once your documents are completed, you must register with the Investments Board and the Central Bank. This process costs about $25-100, and will ensure that your property is protected in case of litigation.
There are a number of fees involved in purchasing property in The Bahamas. Realtors’ fees, lawyers’ fees, and other costs can be prohibitive. However, the International Persons Landholding Act replaced the Immovable Property Act of 1981, making foreign property purchase easier. For properties larger than five acres, you must submit a permit to the government. You will also need a permit for undeveloped land. And once your transaction is complete, you will need to register the property with the Investment Board and Central Bank.
In addition to taxes, you should be aware of the government’s records on the property. The government has a database that allows you to check whether the property is owned by the current owner. If it is, you can also check whether the seller has paid their taxes and title insurance. If it hasn’t, then the buyer should avoid purchasing it. But, if your financial situation doesn’t allow you to buy the property, be careful. You might end up losing your life savings.