THE COSTS OF BUYING PROPERTY IN THE BAHAMAS

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:

• Value less than $20,000, the rate is 2%
• Value is equal to or greater than $20,000 and less than $50,000 - 4%
• Value is equal to or greater than $50,000 and less than $100,000 - 6%
• Value is equal to or greater than $100,000 and less than $250,000 - 8%
• Value is equal to or greater than $250,000 - 10%

This tax is split between the vendor and the purchaser

The vendor's legal fees

The legal fees on a sale or purchase are usually 2 1/2 % of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and 1/2% thereafter.

The Purchaser will be responsible for:

• 1/2 of the Government Stamp Tax as set out above
• The purchaser's legal fees as detailed above. This fee includes the lawyers Opinion on the title to the property
• Recording fees ($3.50 per page) on the conveyance and other closing documents which need to be recorded
• Payment of the permit under the International Persons Landholding Act if applicable

Real Property Tax

The taxable value of your property is based on the latest selling price. If you possess an annual home-owners permit, you may deem your primary residence to be owner occupied. The annual tax on owner occupied property will not exceed $35,000.

On owner occupied properties:

• First $250,000 - Exempt
• To $500,000 - 0.75%
• Excess over $500,000 - 1%

Visitors may reside in The Bahamas for a period of up to 8 months at a time, provided that they can indicate means of financial support for this period and have a return ticket to their homeland or some other country where they would be accepted.

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