A Guide to Buying Property in The Bahamas: Benefits, Process, and Costs

by Lou Jupp

Why Invest in The Bahamas? Key Benefits

Investing in real estate in The Bahamas provides a wide array of advantages for both vacation homeowners and investors:

High Rental Yields: The Bahamas boasts one of the highest rental yields in the Caribbean, averaging 8.16% (Global Property Guide, 2021), making it an attractive option for those seeking strong income from vacation rentals.
Tax-Friendly Environment: The Bahamas has no inheritance, capital gains, income, or corporate taxes. This tax-friendly structure offers substantial financial advantages for investors and residents alike.
Stable and Growing Economy: With a resilient and stable economy, property values in The Bahamas tend to be well-supported, providing additional confidence for investors.
Year-Round Ideal Climate: Enjoy sunny, warm weather throughout the year, making The Bahamas a prime destination for both living and vacationing.
Permanent Residency by Investment: For individuals purchasing property valued at $1.5 million or more, The Bahamas offers the opportunity to apply for permanent residency, granting long-term residency privileges with potential tax benefits.
Easy Accessibility: The Bahamas is well-connected by direct flights from major U.S. and Canadian cities, making travel seamless for homeowners and renters.

Direct Flights to The Bahamas

Here’s a list of cities offering direct flights to The Bahamas, making it easy for visitors to reach the islands:

Country	City
United States	Miami, FL
	Fort Lauderdale, FL
	Orlando, FL
	Tampa, FL
	Atlanta, GA
	Charlotte, NC
	New York, NY (JFK)
	Newark, NJ
	Washington, D.C.
	Boston, MA
	Philadelphia, PA
	Dallas/Fort Worth, TX
	Houston, TX
	Chicago, IL
	Baltimore, MD
Canada	Toronto
	Montreal
	Calgary

These frequent connections make it convenient for homeowners and guests to reach The Bahamas, adding value to property investments through accessibility and rental potential.

The Real Estate Transaction Process

The Bahamas has a well-defined process for purchasing real estate that ensures security and transparency for both buyers and sellers:

Legal Representation: Both buyer and seller must engage an attorney. Bahamian law holds attorneys responsible for the integrity of the transaction, ensuring professional oversight.
Offer & Letter of Intent: A Letter of Intent is drafted by the real estate advisor once the buyer decides to make an offer, detailing conditions of the offer.
Contract Drafting: Upon acceptance of the offer, the seller’s attorney prepares the formal contract.
Title Search: The seller’s attorney performs a title search to confirm ownership and reveal any issues. Title insurance is optional, even for financed properties, though it can offer extra peace of mind.
Timeline: From offer acceptance to closing, the process typically takes 60 to 90 days.

Cost of Buying Property in The Bahamas

It’s essential to understand the costs involved in acquiring property:

Legal Fees: Legal fees are approximately 2.5% of the purchase price, plus a 10% VAT. For transactions over $1 million, these fees may be negotiable.
Real Estate Commission: Paid by the seller, the commission rate is 6% for developed properties and 10% for undeveloped land, with an added 10% VAT.
Government VAT: VAT on property sales varies from 2.5% to 10% depending on the purchase price, split equally between buyer and seller.

Investing in The Bahamas offers a unique blend of economic and lifestyle benefits. With its attractive tax structure, high rental yields, opportunity for permanent residency through investment, and robust transaction process, buyers can enjoy both a sound investment and the stunning beauty of island living.