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Real Estate Agents Fees

Real estate agents charge a 10% commission on the sale of undeveloped property. The commission for developed property, whether residential or commercial, is 6%.

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Value Added Tax (VAT)

VAT charges of 12% will be levied on commissions, legal fees, appraisals, property transactions over $100,000, as well as rentals and Common Area Maintenance (CAM).

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Real Property Tax

Bahamians and non-Bahamians owning real property in The Bahamas must pay property tax. Returns are due on or before December 31 each year, and are filed with the Chief Valuation Officer. Taxes are paid to the Public Treasury and can be paid at the property tax office or online at www.bahamasgov.bs. Rates are as follows:

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Property Tax Rates

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Vacant/Unimproved Land (non-Bahamians)

  • First $7,000 of market value - $100

  • Portion over $7,000 - 1.5

 

Commercial

  • First $500,000 of market value - 0.75%

  • Market value over $500,000 - 2%

Stamp Duty

As of July 1, 2015 stamp duty has been reduced to a rate of 2.5%. Property transactions over $100,000 are subject to 10% VAT. The Vendor and Purchaser each pay half of the stamp duty and VAT unless otherwise agreed.

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In property sales, sellers generally pay commission and legal fees. Sometimes property owners list a net sales figure, in which case the agent adds those charges to the price quoted to prospective buyers.

Stamp duty on mortgages is payable at a rate of 1% on the amount borrowed. The Bahamas Bar Assoc. follows a minimum scale fee for conveyances and mortgage transactions at 2.5% of the sale price plus out-of-pocket expenses.

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Approval Authority

No development of a land can be commenced or carried on unless the developer obtains (i) Land Use Plan Approval (ii) Zoning Bye-law Approval (iii) Site Plan Approval (iv) Zoning Compliance (v) Architectural Design Approval (vi) Subdivision Approval and (vii) Severance Approval.

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