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Overview


The Bahamas is an archipelago of some 700 hundred islands and 2,400 cays, rocks and islets starting approximately 50 miles off the coast of South Florida and stretching in a southeasterly direction over more than 100,000 square miles of open ocean. Though frequently referred to as being in the Caribbean because of its warm The Bahama Islandsweather and breezy island life, its 5,358 square miles of land mass is technically north of the Caribbean.

The estimated population of 353,658 persons lives within 14 major islands and cays. The capital city being Nassau, located on the island of New Providence. The country’s official language is English and the official religion is Christianity.

The Arawak Indians were the original inhabitants of The Bahamas migrating through the Antilles from South America. A few decades after Columbus landed on San Salvador in 1492, which he named Baja Mar for its shallow seas, the Spanish had depopulated the islands by shipping the peaceful Arawaks into slavery in the mines of Hispaniola and Cuba, where they died by the thousands.

The Bahamas remained mostly unpopulated until a group of English settlers from Bermuda called the Company of Eleutheran Adventurers, established the first permanent settlement in The Bahamas. Considered religious refugees, in 1647 they organized a community on what is now called the island of Eleuthera which means freedom.

During the late 17th and early 18th centuries, piracy flourished in the islands because of their proximity to important shipping routes. The power of the buccaneers and notorious privateers including Sir Francis Drake, Henry Morgan and Blackbeard, was crushed by Woodes Rogers, the first Royal Governor, who established orderly conduct in 1718. As he expelled piracy, and restored commerce on the island, ordaining the motto Expulsis Piratis – Resituta Commercia.

This gave way to an influx of settlers after the American war of Independence, when some 6,000 American loyalists and their slaves settled in The Bahamas.

The American Civil War brought prosperity to The Bahamas, which served as a transfer point for munitions and medical supplies to be run through the northern blockade of Confederate ports. Cotton from the south was a short lived commodity of exchange.

The Bahamas prospered again however, during the 20th century prohibition era in the United States, mostly because of its proximity to the mainland.  During this time there was enormous economic prosperity as the islands supplied liquor for American rumrunners.

Ideal weather conditions were advantageous for the Royal Air Force as they used The Bahamas as a flight training area during World War II.

In the post-war years, The Bahamas has become one of the world's most coveted vacation destinations. In 1950, an estimated 40,000 visitors vacationed in The Bahamas. This would mark the beginning of a new industry that would experience unparalleled growth and development.

The Bahamas celebrated the arrival of its five millionth visitor in 2010 for the second time in the country’s history. This represents approximately 1.5 million cruise visitors and 3.5 million stopover visitors. According to the Ministry of Tourism, 60% of the gross domestic product is derived from tourist related efforts which accounts for an injection of just over $2 billion into the economy.

The financial services sector constitutes the second pillar of the Bahamian economy providing 20 per cent of GDP. The Bahamas boasts an attractive environment for both individuals and companies seeking to conduct business and is home to a considerable number of banking institutions, mutual funds, insurance companies and International Business Companies.

The Bahamas achieved independence from Britain July 10, 1973, and has a continued legacy of Parliamentary democracy for over 300 years. The Bahamas is proud to be a fully self-governing member of the Commonwealth and a member of the United Nations, the Caribbean Community (CARICOM) and the Organization of American States (OAS).

Frequently Asked Questions

What kind of properties do you sell in the Bahamas and what islands are they on?

Bahama Islands Realty is a full-service real estate company specializing in residential and commercial properties. Our portfolio includes vacant land, acreages, single-family homes, condominiums, townhomes, private islands, resort properties, office/retail buildings, shopping centers and warehouses among others.

Why should foreign investors consider buying a home in Bahamas?

The Bahamas has attracted a very wide range of property investors…from the very rich who have purchased large multi-million dollar estate properties to those who have purchased modest condominiums or homes in the $150,000 - $400,000 price range. The old axiom that states that location, location, location is a major determinant of demand and value has pushed the price of properties in specific areas of New Providence and Paradise Island to very high levels, but even at these levels prices are on par with other similar resort destinations. It is still possible to purchase waterfront and beachfront property in the more remote areas of The Bahamas for as little as $50,000. Alternatively one can also spend millions for beachfront sites in Ocean Estates, Old Fort Bay, Albany and Lyford Cay, exclusive gated communities in New Providence.

Is it possible for a non-Bahamian to purchase property in The Bahamas?

Yes. The International Persons Landholding Act, 1993, provides for the sale of real property in The Bahamas to non-Bahamians.

Are there any special permits required when purchasing property in The Bahamas?

Permits are required by non-Bahamians, as provided under the International Persons Landholding Act, if:

  1. The property being purchased is greater than 2 acres.
  2. The intention is to rent out all or a portion of the property.
  3. The property being purchased is for commercial development.

Non-Bahamians who buy land for which a permit is not required must register their purchase with the Foreign Investment Board under such Act.

How do I go about getting a permit or registering my purchase with the Foreign Investments Board?

Non-Bahamians should also register their investment with the Exchange Control at the Central Bank of The Bahamas insure that on resale they will be able to remit the net proceeds of sale outside the Bahamas in the currency of the original investment.

In what form is title to property given?

The vast majority of property is sold freehold. There are a few exceptions of leasehold properties. These properties are generally Crown Lands (Government owned) properties that are leased for agricultural or development purposes. The Government of The Bahamas does not generally sell its property.

Do I need to engage the services of a local attorney when purchasing property?

No, but the appointment of a local attorney is highly recommended. Apart from insuring that the documents of title are properly prepared and are in good order the local attorney, when representing the buyer, gives an Opinion on the title to the property. This Opinion is considered to be the same as title insurance as the lawyer is liable should the purchaser find that there is a defect in the title. Local lawyers carry indemnity insurance.

Is title insurance available in The Bahamas?

Yes. There are companies in the Bahamas offering title insurance. The risk premium generally runs between .20% - .27% of value.

What are the costs involved in buying or selling property?

A typical sale, which is called a "Gross Sale", assumes that the vendor will be responsible for the payment of:

  1. The real estate agents commission (if an agent is involved). The commission on the sale of residential developed property is 6% of the gross sales price. The commission on the sale of undeveloped property is 10%.
  2. The Government Stamp Duty (Tax on the conveyance of real property). This is a graduated Tax. The total amount of the Tax is calculated as follows:

When the value of the consideration is less than $20,000, the rate is 4%

When the value of the consideration is equal to or greater than $20,000 and is less than $50,000, the rate is 6%

When the value of the consideration is equal to or greater than $50,000 and is less than $100,000, the rate is 8%

When the value of the consideration is equal to or greater than $100,000 and is less than $250,000, the rate is 10%

When the value of the consideration is equal to or greater than $250,000, the rate is 12%

This tax is split between the vendor and the purchaser

  1. The vendor's legal fees. The legal fees on a sale or purchase are usually 2 1/2 % of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and 1/2% thereafter.

The Purchaser will be responsible for:

  1. 1/2 of the Government Stamp Tax as set out above,
  2. The purchaser's legal fees as detailed above. This fee includes the lawyers Opinion on the title to the property.
  3. Recording fees ($3.50 per page) on the conveyance and other closing documents which need to be recorded.
  4. Payment of the permit under the International Persons Landholding Act if applicable.

In the event that the sale is a "Net Sale" the purchaser would be responsible for payment of all of the above-mentioned fees.

What information is required from non-Bahamians when purchasing property in The Bahamas?

INFORMATION REQUIRED FROM NON-BAHAMIAN PURCHASERS OF REAL PROPERTY IN THE BAHAMAS

1) Full name(s) and address (e.g.), telephone/fax numbers of person(s) taking title.

2) If more than one-person taking title please indicate how they wish to take title,

namely: -

(a) as joint tenants - right of survivorship (e.g. husband and wife)

(b) as tenants in common - no right of survivorship (e.g. partners)

(c) in a company - see 7) below

3) Date(s) and place(s) of birth of person(s) taking title.

4) Present occupation(s) and nationality of person(s) taking title.

5) List/description of other real property (if any) in Bahamas owned by person(s) taking title.

6) Immigration status (if any) in Bahamas of person(s) taking title (e.g. holder of

permanent residence certificate or holder of work permit).

7) If title to be taken in name of company: -

(a) has company already been incorporated? If yes, address of Registered Office

and name of contact person (yes/no).

(b) if company has not yet been incorporated which law firm is to incorporate it?

Provide the following additional information: -

(i) three alternative names of company. This is necessary because a

particular name may have already been taken.

(ii) Same information as required in 1) 3) 4) 5) and 6) above in respect

of person(s) to own shares in company.

(iii) Percentage of shares in company to be held by each shareholder.

(iv) Names, addresses and occupations of at least two persons who are

to serve as directors and officers of the company (Note: may be

same as persons in 1) above).

NOTE: Companies incorporated outside of The Bahamas will have to be registered as a Foreign Company under the Companies Act 1992 (approximate cost $1,500).

8) Purpose for which property being purchased - (check (a) or (b)).

(a) If intended use is exclusively as personal place of residence in Bahamas no

permit is required from the Investments Board under the provisions of The

International Persons Landholding Act 1993 and the purchase is simply

registered with the Investments Board by obtaining a Certificate of

Registration after completion.

(b) If intended use is other than exclusive place of residence in Bahamas or in

addition thereto (e.g. rental) then approval for a Permit is required from the

Investments Board before the transaction can complete. The time it takes to

obtain such a permit from date of application is between two to six weeks.

NOTE: A Permit will also be required where –

(i) more than one person taking title and such persons are not immediately

related to each other (e.g. husband wife child) regardless of whether

intended use is for personal place of residence by all of such persons.

(ii) Other real property in the same vicinity/area is already owned and used as

personal place of residence.

9) If an Agreement for Sale and Purchase has not yet been prepared and executed please provide the following information: -

(a) Name(s), address (es), telephone/fax number(s) of seller(s).

(b) Name, address, telephone/fax number(s) of seller(s) attorneys).

(c) Brief description and location of property being purchased.

(d) Agreed purchase price and currency. Also indicate whether net or gross

(e.g. net purchaser pays all closing costs). In the event that there is a house on the property and the contents are also being purchased indicate the amount being paid for land and house/condo and amount being paid for contents. Also indicate if an inventory is required.

(e) Agreed amount of deposit and who to hold (Note: usually sellers’ attorneys,

or Real Estate Agent).

(f) If agreed purchase price not net to seller please advise which party to pay

(i) legal fee(s) (e.g. purchaser/seller/split)

(ii) stamp duty (e.g. purchaser/seller/split)

 

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