If you are a non-Bahamian and plan to buy a residential property in the Bahamas, you should know the requirements and procedures for this type of property acquisition. First of all, you must obtain the correct permit. This is required for non-Bahamians to acquire a property that is more than 5 acres. Failure to acquire the right permit may result in the acquisition of the property becoming null and void. Furthermore, it may be necessary to get a permit for large-scale development projects in the Bahamas. In this case, you must apply to the Bahamas Investment Authority (BIDA). You will need to present a detailed project proposal that includes the required financial projections, employment requirements, etc.
The next step is to get the title of the property. In order to do so, you will need to hire an attorney. This is necessary to check if there are any encumbrances on the title. This is because if there are any encumbrances on the title, it will affect the marketability of the subject property. Secondly, you must ensure that the property is free of mortgages.
You can get the property financing from a reputable mortgage broker in the Bahamas. There are specialist brokers that deal with Bahamas property finance and they are well aware of the current real estate market conditions in the country. bahamas luxury real estate will help you understand your options and answer any questions that you may have. This way, you will be able to purchase your Bahamas property with the confidence that you have the right finance.
You should be aware that demand for residential property in The Bahamas was decreasing even before the spread of the coronavirus. A recent report by Engel & Volkers noted that there were fewer residential sales in 2019 compared to the previous year. The Bahamas government has also announced that it will close its borders to international tourists in March 2020 to prevent the spread of the virus. This will also affect air travel and sea travel figures.
When buying a property in The Bahamas, it is important to consider the taxes that apply. The VAT tax on real estate in The Bahamas is 10%, which is shared between the buyer and seller. For residential properties, the first two-hundred-fifty thousand dollars are tax-exempt. Between that amount and $500000, the tax rate is 3/4 of one percent. For properties worth more than $7,000, you will have to pay 1% of the market value of the property.
The Bahamas is a favored destination for business executives and investors because of its tax-free status. It is also home to more than seventy-five beautiful islands. The country boasts of 310 days of sunshine a year and has a vibrant expat population. This makes Bahamas Property a great investment.