Bahamas Real Estate: Costs And Fees

What are the real estate Legal Fees in the Bahamas?

Legal fees can vary, but average around 2.5% of the selling price of the property. There is also a small recording fee when the title deeds are recorded at the Public Registry. Buyer and Seller are normally responsible for their own attorney fees. Legal Fees are subject to 10% VAT (as are all services).

What are the real estate Commissions on Bahamas real estate transactions?

BREA standard commissions are as follows:

• Unimproved Property/Vacant Land: 10% of the sales price
• Improved property/Homes/Condos: 6% of the sales price
• Commercial property or building: 6% of the sales price
• Business: 10% of the sales price

Commissions are subject to 10% VAT (as are all services). The seller is usually responsible for payment of real estate commission.

What is the Real Property Tax in the Bahamas?

The payment of Real Property Tax is required by law in The Bahamas. The bill is due and payable once produced and must be paid in accordance with the Real Property Tax Act to avoid interest. Assessments are carried out by the Department of Inland Revenue to determine the value of a property and its related Property taxes.

Senior Citizens Benefit: After $300,000 exemption, a 50% discount on the balance of home value not exceeding $1 million. Must be 65 years or older with an NIB Senior Citizen’s card.

Full Payment Benefit: If tax is paid by March 31st of any tax year, a 10% discount is applied.

Owner Occupied Property

• On that part of the market value which does not exceed $300,000 - Exempt
• On that part of market value which exceeds $300,000 but does not exceed $500,000 - 0.625%
• On that part of market value which exceeds $500,000 - 1% (subject to a max of $120k per annum)

Commercial Property

• On that part of market value which does not exceed $500k - 0.75%
• On that part of market value which exceeds $500k but not exceeding $2 million - 1%
• Value exceeding $2 million - 1.5%

Real Property Tax Calculator

Use our real property tax calculators to find out your real property tax amount.

Owner-Occupied Property Tax Calculator

Property Value up to $300,000 - Exempt
Next $200,000 - 0.625%
Above $500,000 - 1%

Enter Property Value ($): Calculate

Commercial / Foreign-Owned Rental Property Tax Calculator

Property Value up to $500,000 - 0.75%
Next $1,500,000 - 1%
Above $2,000,000 - 1.5%

Enter Property Value ($): Calculate

What are the Real Property Tax exemptions?

The following are exempt from the payment of Real Property Tax:

Historical Building Exemption: All buildings registered on the National Register of Historical Buildings are eligible for exemption from real property tax. Exemptions are not automatic and must be applied for even when a property is listed on the Historical Buildings List.

• Public places used exclusively for religious purposes.
• School buildings including their gardens, playing fields, etc.
• Crown land (except Crown land held under lease and Crown Leased Cays).
• Property owned by foreign governments for use exclusively as consular offices or residences.
• Property belonging to Commonwealth countries used for analogous consular functions.
• Owner occupied property in respect of the first $300,000.
• Unimproved property owned by Bahamians.
• Property owned by Bahamians situated on the Family Islands.
• Property used for commercial farming.
• Property used exclusively for charitable or public service purposes where no profit is derived.
• Property of the National Trust.
• Improved historic property in the national register for twenty years from the date of improvement.