After the global financial crisis, Bahamas property prices declined by as much as 20%, with some areas suffering as much as 60% declines. In fact, local agents said that house prices had fallen by between 30% and 40% in the past five years, but this trend has now reversed and the housing market is starting to stabilize. Wealthy foreign buyers are now buying property in cash and the rental yields are moderate to excellent.
Non-Bahamians looking to invest in real estate must obtain a government permit. This is required if they wish to buy property that is more than 2 acres, is intended to be used as a residence, or is intended for commercial development. In addition, foreign buyers must register their investment with the Foreign Investment Board (FIB) and the Central Bank of The Bahamas (ECB). This will allow them to sell the property at a profit in the same currency as they invested.
Purchasing property in The Bahamas can be extremely rewarding and exciting. There are many exciting medium and long-term growth opportunities in the real estate market, as well as strong rental yields. Once reserved for the very rich, the country is now welcoming investors from all over the world. With a range of development projects and various financing options, investing in The Bahamas has become more accessible and affordable.
The Bahamas is a highly sought-after location for real estate. The country is home to the third largest shipping registry in the world and attracts both local and international property buyers. While property prices in The Bahamas aren’t high, buyers can still enjoy the relaxed Bahamian lifestyle without breaking the bank. Property owners in The Bahamas who own property in their home country can qualify for a homeowner’s residence card and permanent residency. While the former does not give foreigners the right to work in the country, the latter is a more permanent residency option.
Non-Bahamians who purchase property in The Bahamas must register their investment with the government. If they want to use the property as a second home, they must apply for a permanent or annual residence permit from the Immigration Department. The latter will require a non-refundable fee of $500. In addition, the property must be registered as a single family residential property.
VAT taxes are also a consideration in buying or selling property in the Bahamas. Generally, a buyer pays the tax on a property, including land and improvements. The buyer is also responsible for paying the stamp duty and legal fees. Additionally, the Bahamas government imposes Value Added Tax (VAT) of 7.5 percent on all transactions.
The Bahamas Property Fund’s directors include Larry Roberts, a real estate investor and past President of the Bahamas Real Estate Association. Roberts specializes in commercial real estate and has been in the industry for over 50 years. He is also a member of the Society of Industrial & Office Realtors. lyford cay rentals