Real Estate in The Bahamas

Grand Bahama: (242) 351-6445
Lyford Cay: (242) 362-5219
New Providence: (242) 326-6441

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The Bahamas Stamp Tax & Value Added Tax

There have been a number of legislative changes in 2014/15, one of the most significant being the calculator-723925_640implementation of Value Added Tax (“VAT”). VAT is a form of indirect consumption tax charges on the supply of goods and services. This article will explore the impact of VAT on real estate transactions in The Bahamas.

VAT was implemented on 1st of January 2015 at a rate of 7.5% and is governed by the Value Added Tax Act, 2015 (the “VAT Act”), Value Added Tax Regulations, 2014 (the “VAT Regulations”.)   In June, 2015, the Ministry of Finance, VAT Department implemented VAT Rule #2015-025 (Real Estate) (the “VAT Rule”) in an effort to provide clarity relating to VAT on real estate.  In July 2018, the VAT was increased to 12%. 

When considering the purchase of a property in The Bahamas, there are various professional services involved that will now incur VAT. These include fees for appraisals, title search fees, legal fees and real estate commissions.  There is no VAT on the sale price for real estate transactions, only on the fees of the transaction.

Although not a professional fee incurred during the purchase of a residential property, a buyer needs to bear in mind that homeowner association fees are also subject to VAT.

VAT and Stamp Duty on the transfer Of Real Property

As of July 2018, there is no VAT on the sale or transfer of real property.  There is a Bahamian Government Stamp Duty Tax on all sale and transfers of real estate.

For the avoidance of doubt please note the following:-

  1. Conveyances include the sale, lease, assignment or other transfer of real property from an owner/s to another.
  2.  Real Property includes, but is not limited to:

a) Vacant land
b) dwellings for first time owner-occupiers whether or not valued over $100,000;
c) Commercial buildings
d) condominiums
e) tenements or any other structures attached to the land;
f) time-shares; and
g) any buildings constructed for sale by contractors who are also the owners;

Rate of Government Stamp Duty on Real Estate Transactions

Sale Price                Stamp Duty Rate

$0 – $99,999                       2.5%

$100,000+                          10%

The Bahamian Government Stamp Duty tax is normally split equally 50-50 between the seller and the purchaser.

(Information from the Bahamas Real Estate Association)

Legal Fees

As a purchaser, you will need a local Bahamian Attorney to represent you in the purchase of your real property.  Your attorney will perform many duties in your interest while closing on a real estate transaction.  Some of the responsibilities of the attorney include, performing the title search, registering your purchase with the Investment Board, obtaining necessary permits if needed, advising you, and liaising with the seller’s attorney.   Standard legal fees are at 2.5% plus VAT of the purchase price plus disbursements.  (These legal fees can vary).  Mosko Realty Ltd. is happy to recommend a lawyer for you, simply ask your agent today.

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MOSKO Realty - The Bahamas

2 weeks ago

MOSKO Realty - The Bahamas
New Rental | Waterfront ApartmentTurn-key move in ready, spacious 2 bedroom apartment on the canal and on a no-thru tranquil road. Power, water and basic internet included in the rent and boat dockage available.📍 76 Spanish Cay, Bahama Terrace🏝️ Grand Bahama🛏️ 2🛀 1.5🏷️ $2,000/monthℹ️https://www.moskorealty.com/listings/76spanishcay/☎️ 242-351-6445📧 [email protected]🌐 www.moskorealty.com#moskorealty #forrent #newlisting #grandbahama #bahamasrealestate #relocating #grandbahamarealestate #rentalproperty #waterfront #boaters #internationalrealtor #internationalrealestate #bahamas #itsbetterinthebahamas #investgrandbahama #wausm #renting #justlisted #lucaya #freeport #realtor ... See MoreSee Less

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MOSKO Realty - The Bahamas

1 month ago

MOSKO Realty - The Bahamas
www.cbsnews.com/news/carl-allen-hunting-sunken-treasure-at-walkers-cay-in-the-bahamasThe story of the Wreck of the Maravillas shown on the CBS Sunday Morning Show. Very interesting story Looking for something to do while on Grand Bahama? Check out the story below and visit the Museum on Grand Bahama Island.#bahamasmaritimemuseum #allenexploration #grandbahama#bahamas #museum #maritimehistorySince he was a child Carl Allen came to Walker's Cay in the Bahamas for the fishing. Today, the retired businessman is fishing for gold, silver and gems from the wreck of a Spanish galleon that sank in 1656. ... See MoreSee Less

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Grand Bahama:
Mosko Realty Ltd.
P.O. Box F-40368
Freeport, Grand Bahama, The Bahamas
T: (242) 351-6445
F: (242) 351-6449
USA: (305) 433-7595
[email protected]

Lyford Cay:
Mosko Realty Ltd.
P.O. Box N-1130
Lyford Cay, The Bahamas
T: (242) 362-5219
F: (242) 362-5214
[email protected]
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New Providence:
Mosko Realty Ltd.
P.O. Box N-1130
Nassau, The Bahamas
T: (242) 326-6441
T: (242) 322-8808
F: (242) 325-5112
In the US: (954) 839-8868
[email protected]

Real Estate in The Bahamas
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