For most buyers, purchasing residential property in the Bahamas is the simplest and most straightforward entry into island ownership. Whether you’re looking for a vacation retreat, a winter escape, or your dream retirement home, the process is well-established and open to international buyers.

Types of Property

The majority of property in The Bahamas is freehold (fee simple), giving buyers full ownership rights. Condominium developments are also common, especially on New Providence and Paradise Island. Leasehold properties, often designated as Crown Land, are typically reserved for agricultural or government-approved development purposes.

The Buying Process

Step 1 – Finding a Property

The Bahamas Real Estate Association (BREA) operates through a national Multiple Listing Service (MLS), which allows licensed agents to share listings across the entire country. This means buyers can work exclusively with one trusted agent to access all available properties—residential, commercial, or private islands—without missing opportunities.

Choosing a dedicated buyer’s agent ensures your interests are represented throughout the transaction, as listing agents are legally obligated to act in the seller’s best interest. The seller pays the commission, so there is no additional cost to you as the buyer.

Step 2 – Negotiation & Agreement

Once you’ve found the right property, your agent will prepare a written offer. If accepted, a formal sales agreement is drafted by attorneys representing both buyer and seller. This document outlines the terms, price, and conditions of the sale. A 10% deposit is typically placed in escrow with the seller’s attorney upon signing.

Step 3 – Conveyance & Closing

The conveyance process in the Bahamas is meticulous. Without a computerized title registry, local attorneys perform detailed title searches to confirm ownership history and ensure a clear title. On average, allow up to three months for the transaction to close, though timelines vary depending on complexity. Once all contingencies are met, final documents are executed (often remotely), and the balance of funds is transferred to complete the sale.

At that point, all that’s left to do is stock the fridge and hang your hammock—your piece of paradise is officially yours.

Check out our Bahamas relocation guide here

Closing Costs

In the Bahamas, all properties are listed at a gross price, meaning the sale price already includes the seller’s portion of the government stamp tax and commission. Buyers, however, are responsible for their share of stamp tax—currently 5% of the property value—along with legal fees that typically range from 1% to 2.5% of the purchase price.

As a general guideline, buyers should budget approximately 7.5% on top of the purchase price to cover closing costs.

When selling property, closing costs are similar: the seller covers half of the stamp tax, their own legal fees, and the real estate commission (see Real Estate Commission for more details).

Property Tax

Non-Bahamians are subject to annual Real Property Tax (RPT), calculated on the market value or purchase price of the property. While rates are periodically adjusted by the government, the current structure for developed residential property is:

  • Up to $250,000: Exempt from RPT

  • $250,000 – $500,000: 0.625%

  • Over $500,000: 1%

For undeveloped or vacant land owned by non-Bahamians, the tax rate is 1.5%.

Financing

Financing can be challenging for non-residents. Bahamian banks tend to be conservative, and credit systems differ from those in the U.S. or Europe. However, several Canadian banks operating in the Bahamas may extend mortgages to foreign buyers with strong credit histories and verifiable income.

Typical terms include:

  • 20–30% down payment

  • 15-year amortization

  • Interest rates between 4–7%, depending on risk and institution

Buyers with established banking relationships or substantial assets often find the process smoother.

Tax Advantages

The Bahamas is one of the few jurisdictions in the world offering no personal income, capital gains, inheritance, or corporate tax. These benefits extend to individuals, corporations, partnerships, and trusts—making the country an attractive location for wealth preservation and global diversification.

While these advantages don’t require year-round residence, you may need to declare income in your country of tax residency. We work with international tax experts familiar with jurisdictions such as the U.S., Switzerland, the EU, and Brazil to help clients navigate compliance and optimization strategies.

Note: Bahamian companies engaged in local business activities are subject to a business license fee, which functions as a tax on gross earnings.

International Financial Center

The Bahamas has evolved from a traditional “tax haven” to a regulated international financial center. With enhanced transparency and information-sharing agreements in place, the jurisdiction now offers a legitimate, stable environment for asset protection, trust formation, and global banking. Nassau remains home to hundreds of private banks and trust companies, managing billions in assets under administration.

For more insight, visit The Bahamas Invest Magazine

Residency

While permanent residency is considered a privilege, the Bahamas provides a fast-track path for significant investors.

Permanent Residency: For property purchases or business investments exceeding $1 million that create local employment.

Annual Residency Cards: Available for those below the investment threshold.

For most foreign homeowners, maintaining tourist status offers a simple and flexible way to enjoy the Bahamas without the administrative requirements of permanent residency. See our Residency Guide for details.

Escape to the Bahamas

For more detailed information on purchasing property in the Bahamas, be sure to pick up a copy of Escape to the Bahamas, which includes personal stories and practical information such as:

  • Which island is right for you

  • History, culture & landscape

  • Buying or bringing your vehicle & getting around

  • Renting

  • Buying property

  • Building in the Bahamas

  • Establishing residency

  • Supporting yourself financially

  • Health care

  • Crime and safety

  • And many more topics!

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