Published on and written by Cyril Jarnias
Between record tourism, a tight real estate market, and an ultra‑attractive tax regime, the Bahamas have established themselves as one of the most strategic playgrounds for French savers looking to diversify outside Europe. In 2025, the archipelago welcomed 12.5 million visitors, an increase of more than 11% in one year. This momentum, combined with a limited supply of properties, is setting the stage for a very bullish cycle in 2026, particularly in residential and luxury real estate.
This practical guide for French investors covers the numbers, key areas, taxation, rental yields, residency rules, and pitfalls to avoid.
A Market Driven by Tourism and Scarce Supply
The number one driver of the Bahamian real estate market is tourism. Nearly half of the country’s GDP comes from this sector, and the 12.5 million visitor mark was reached in 2025. At the same time, the property inventory remains structurally low, especially in the most sought‑after sectors: waterfront, high‑end residences, gated communities, and the so‑called “Family Islands.”
The combination of strong demand and limited supply keeps prices resilient. Premium land, developable lots, and parcels in gated communities like Lyford Cay or Old Fort Bay sell at a premium due to scarcity, and sellers of ultra‑prime properties retain strong bargaining power.
The 2026 outlook reflects this tension: experts anticipate a national price increase of around 5 to 10%, with higher gains in luxury enclaves. In some segments, local professionals even mention a potential for double‑digit growth.
2026 Indicators Already Pointing Upward
Data from the first quarter of 2026 shows a market transitioning toward a new cycle of high activity. Inventory is rising, listings are multiplying, but commitments and closings are following with a slight lag, opening an interesting entry window for savvy buyers.
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| Q1 2026 Indicator (GRE Islands) | Q1 2026 Value | Q4 2025 Reference | Main Change |
|---|---|---|---|
| Active listings | 948 | 879 | Inventory rising |
| Pending sales | 259 | 228 | Pipeline strengthening |
| Closed sales | 63 | 93 | Temporary slowdown in signatures |
| Average sale price | $1,570,898 | — | Rising, driven by high‑end |
| Median sale price | ~$650,000 | — | Solid mid‑segment |
| Average days on market | 201 days | — | Longer timelines |
| Average price per square foot | $430 | — | Slight decline, wider mix of properties |
This configuration – more listings, longer days on market, but average prices rising thanks to premium transactions – signals a phase where negotiations become possible again without challenging the underlying trend (value appreciation).
Overall forecasts for 2026 include:
– a sales increase of around 15%,
– a price rise estimated at about 10–12%,
– a jump in construction projects of roughly 25%,
– a 20% increase in investor interest by volume of inquiries.
Where to Invest in the Bahamas as a French Investor?
For a French investor, the first question isn’t “should I go?” but rather “where to position in the archipelago?” The Bahamas has over 700 islands, but a few key markets stand out clearly.
Nassau and New Providence: The Heart of the System
The capital, Nassau, located on New Providence Island, concentrates most of the infrastructure, services, and international air traffic. It is also the most dynamic area for seasonal rentals and the mid‑range residential market.
Waterfront condos start around $300,000–$400,000 for entry‑level products, but prestige residences soar. Luxury beachfront apartments frequently trade from $3 million, and some trophy homes reach $40 million. Still, New Providence remains the most natural entry zone for a first investment, especially in the mid‑segment, which showed strong resilience in early 2026.
Paradise Island: International Luxury with Solid Yields
Right across from Nassau, Paradise Island embodies the luxury market par excellence, heavily frequented by an international ultra‑wealthy clientele. The numbers speak for themselves:
| Paradise Island Indicators (CMC Global Estates Research 2026) | Value |
|---|---|
| Average price per m² | 14,985 BSD |
| Gross rental yield | 4.1% |
| Annual capital growth | +18% |
| Buyer profile | International ultra‑wealthy |
Average transaction values here rose 21% year‑over‑year, and nearly 18% capital appreciation places the island among the most high‑performing markets in the archipelago. Vacation rental occupancy rates are high (70 to 80%), with premium nightly rates of $300 to $800 – even more for the most exclusive villas.
For a French investor mainly focused on capital preservation and growth rather than maximum cash flow, Paradise Island is a particularly consistent choice.
Exuma and Eleuthera: Lifestyle, High Yield, and Appreciation Potential
The Exumas and Eleuthera are gaining momentum, fueled by a more “experiential” tourism: pristine beaches, nature, a more intimate feel than Nassau, while still being accessible.
For Exuma, the data shows:
| Exuma Indicators (CMC Global Estates Research 2026) | Value |
|---|---|
| Average price per m² | 11,988 BSD |
| Gross rental yield | 5.8% |
| Annual capital growth | +7% |
| Buyer profile | HNW, lifestyle |
Waterfront villas with pool and boat dock rent for an average $750 per night, and well‑managed large homes (4 to 6 bedrooms) can generate $80,000 to $180,000 in gross annual revenue. In a context where price per m² is lower than Paradise Island, the yield/appreciation equation is particularly attractive.
Eleuthera combines low entry costs, a growing luxury market, and upgrading infrastructure, with projected annual appreciation of 4 to 6%. For a French investor targeting medium‑term appreciation, the island is promising, especially through seasonal rentals at $300 to $600 per night in areas like Governor’s Harbour.
Harbour Island, Lyford Cay, and Ultra‑Prime Enclaves
Harbour Island is often cited as a showcase of Bahamian “laid‑back” luxury. Pink Sands Beach, boutiques, and high‑end villas make it a sought‑after spot for expats and investors.
| Harbour Island Indicators (CMC Global Estates Research 2026) | Value |
|---|---|
| Average price per m² | 9,990 BSD |
| Gross rental yield | 5.5% |
| Annual capital growth | +10% |
| Buyer profile | Investors, expats |
Beachfront villas here generally range between $2.5 million and $15 million. Gross rental yields, around 5–6%, seem modest on the surface but rely on a loyal high‑end clientele and extreme supply scarcity.
Lyford Cay, an iconic gated community on New Providence, attracts investors seeking value growth and robust rental yield:
| Lyford Cay Indicators (CMC Global Estates Research 2026) | Value |
|---|---|
| Average price per m² | 7,992 BSD |
| Gross rental yield | 6.8% |
| Annual capital growth | +9% |
| Buyer profile | Growth investors |
For a French investor looking for stability, a secure environment, and prospects for significant appreciation, these closed enclaves combine several advantages: strong legal security, an established international clientele, and immobile land supply.
Grand Bahama, Abaco, Long Island, Cat Island: Markets to Watch
Grand Bahama stands out with a special status: it is the only island with a free trade zone, under the Hawksbill Creek Agreement. As a result, it attracts the highest volume of foreign direct investment in the country, notably thanks to local tax advantages.
The residential market shows contrasting signals: rising listings and pending sales, fewer closed sales, and a widening gap between average and median prices.
New listings increased 13% year‑over‑year and more than 20% quarter‑over‑quarter. Pending sales jumped more than 10% over the year.
Actual sales are declining, while the average price reaches $715,000 (+40% year‑over‑year). The median price drops to $147,500, signaling a market pulled between high‑end and mid‑range segments.
Abaco is gradually recovering after Hurricane Dorian, with growing activity and still‑relatively‑affordable opportunities for waterfront properties. Long Island and Andros are regularly cited as “the next markets” to watch, due to still‑accessible prices and under‑exploited tourism potential. Cat Island, meanwhile, has the lowest prices in the archipelago, with an environment still nearly virgin that appeals to visionary long‑horizon investors.
For a French investor looking to enter gently, limit their entry ticket, and bet on the “discovery” tourism effect, these secondary islands offer a credible alternative to the overheated most‑publicized markets.
Rental Yields and Potential Income
The common discourse about the Bahamas presents it as a “pricey and low‑yield” market. The reality is more nuanced: gross yields range according to sources from 4 to 8% on average, with significantly higher peaks for very well‑managed short‑term rentals.
Long‑Term vs. Short‑Term: Two Operating Logics
Long‑term rentals (6–12 months) offer appreciable visibility: expat clientele, tourism executives, or retirees, low vacancy, simple management. In this segment, returns hover around 4 to 6% gross per year.
Short‑term rentals – via Airbnb, Vrbo, or local agencies – are significantly more lucrative, at the cost of heavier management. The best assets, well‑positioned and well‑marketed, achieve gross yields of 8 to 12%, sometimes more. The annual income figures for high‑end properties are telling: between $80,000 and $250,000 in gross revenue for luxury villas in Nassau, Paradise Island, or Exuma.
In practice, many international investors aim for a hybrid model: personal use a few weeks a year, and seasonal rental the rest of the time, managed by a local management company.
International investors
Rental Levels and Occupancy Rates
Monthly rents on the long‑term market, all areas combined, are around:
| Property type (long‑term rental) | Average monthly rent (Bahamas, mid‑2025) |
|---|---|
| 1 bedroom | ~$2,200 |
| 2 bedrooms | ~$3,200 |
| 3 bedrooms | ~$4,500 |
| 4 bedrooms and up | ~$8,000 |
On the short‑term side, the game is mainly played on occupancy and average nightly rate. Well‑managed properties regularly achieve 60 to 65% annual occupancy, while the best, in the most premium locations, reach 70–85%. The high season, December to April, is particularly profitable, with occupancy rates exceeding 70%.
Beachfront villas in Exuma or Harbour Island can generate $3,000 to $7,000 per week in high season. Overall, waterfront properties or those with direct beach access command a premium of 40 to 60% compared to similar houses a few hundred yards inland, but they also attract a clientele willing to pay and achieve higher occupancy rates.
Net vs. Gross: What You Really Keep
Even in a tax haven, rental income is not synonymous with “all in your pocket.” In the absence of local income tax or capital gains tax, it is operating expenses that eat into your margin.
Net income after fees represents between 30 and 50% of gross rental income.
For French investors who want to remain passive, the “full management” option through an agency is the most common. Management fees typically run between 20 and 30% of rental revenue for full service (client relations, cleaning, contractor coordination, listing management and dynamic pricing, basic accounting).
Some operators offer lighter packages, around 10–15%, limited to reservation and client relationship management, leaving the owner to coordinate cleaning and maintenance.
An Ultra‑Attractive Bahamian Tax Framework… But a Tricky Interaction with French Taxation
From a strict Bahamian perspective, taxation on real estate income is virtually nonexistent: no income tax, no levy on rents, no tax on capital gains at resale, no inheritance or wealth tax. It is a tax haven in the literal sense for individuals.
Local levies primarily fall on transactions (Transfer VAT) and ownership (property tax).
VAT on Acquisitions: 10% for Non‑Residents
Real estate transactions are subject to a Transfer VAT, the rate of which varies according to the buyer’s profile and the property’s value. For a non‑Bahamian – which is the case for a French investor – the regime is simple: a flat rate of 10% of the purchase price, generally split 50/50 between seller and buyer, unless otherwise agreed.
For nationals and certain permanent residents, a sliding scale from 2.5% to 10% applies, with a maximum rate above one million BSD. Some family gifts and transfers to charitable foundations may be exempt or lightly taxed.
Property Tax: Moderate for Residential Use
Annual property taxation depends on the value and use of the property (primary residence, secondary residence, rental property, vacant land, commercial use). Owner‑occupied homes benefit from a more favorable regime than investment properties, with partial or full exemptions for modest‑value residences, then progressive rates.
For rental properties and vacation homes not occupied year‑round by their owner, rates generally range between 0.625% and 2% of value, depending on brackets, with surcharges for speculative vacant land. There are also specific incentives in certain zones (e.g., exemptions of up to 20 years for approved tourism projects).
Zero Income Tax, Zero Capital Gains, Zero Inheritance Tax
Once the Transfer VAT is paid, the logic is simple: rents are received entirely free of local income tax, capital gains on resale escape any national tax, and transmission to heirs triggers no inheritance tax in the Bahamas.
Stays of fewer than 45 days are subject to a hotel regime requiring VAT registration and a 10% tax on rents, generally handled by management companies.
The French Headache: French Tax Resident or Not?
For a French person who remains a tax resident in France, French law applies to income and capital gains from foreign sources, including the Bahamas. France has no comprehensive tax treaty with the Bahamas on income tax: therefore, there is no complete bilateral mechanism to avoid double taxation.
Practically, a French tax resident must declare in France the rents derived from a property in the Bahamas, as well as capital gains on resale, according to usual French rules (regime for rental income, real estate capital gains, social contributions, etc.), subject to possible adjustments for taxes already paid abroad where they exist.
Even though the Bahamas levies nothing on your rental income or capital gains, France includes them in its taxable base. The absence of a treaty makes tax engineering more complex: it is highly recommended to be assisted by a tax specialist familiar with both French law and the practices of zero‑tax jurisdictions.
For French people who genuinely transfer their tax residency to the Bahamas, the parameter changes. Locally, there is no system of taxation on personal income or wealth. In France, however, expatriation can trigger mechanisms such as the “exit tax” on unrealized capital gains on securities and implies the loss (or transformation) of resident status for income tax and IFI (Impôt sur la Fortune Immobilière). These issues go beyond the sole real estate topic but must be anticipated when structuring the project.
Permanent Residence by Investment: A Major Lever for Wealthy French Investors
Beyond the purely wealth aspect, Bahamian real estate opens the door to a highly sought‑after permanent residence status for international high‑net‑worth individuals. The “Economic Permanent Residency” (EPR) program allows, under conditions, obtaining unlimited right to stay in the archipelago in exchange for a significant investment.
Investment Threshold and Conditions
Since 2025, the minimum investment required for EPR is set at $1,000,000 US, which can take the form of:
– a real estate purchase,
– or the acquisition of “zero‑coupon” bonds issued by the Central Bank.
For real estate investments, several location criteria apply:
– at least $750,000 must be allocated to a primary residence located on New Providence (Nassau) or a “Family Island”,
– or at least $500,000 in a primary residence on Grand Bahama,
– the balance to reach $1 million may be placed in other Bahamian properties.
The qualifying asset must be held for at least 10 years, otherwise the status may be revoked.
Procedure, Costs, and Timelines
The program is administered by the Department of Immigration and the Bahamas Investment Authority. The EPR application involves a set of documents proving the applicant’s probity, health, and financial means: clean criminal record for the last ten years (in all countries of residence), recent medical certificate, proof of investment, proof of financing if borrowing, character references, financial statements, passport copies, etc. Documents must be provided in original or certified copies; simple scans are not sufficient.
The main steps of the process:
A fee of $20,000 must be paid if the application is approved, with an additional $300 per spouse or dependent.
The permanent residence certificate is valid for life and does not require renewal, but a declaration must be filed every 10 years to confirm the accuracy of the information. It does not automatically grant the right to work: a specific work permit is still necessary to engage in local employment.
An accelerated track exists for real estate investors of $1.5 million or more: in this case, the application review is typically completed in 4 to 6 months. Under the standard procedure, expect between 6 and 18 months.
Finally, note that there is no minimum annual stay requirement, but the applicant must demonstrate that the Bahamas constitute their ordinary residence (rental contracts, utility bills, bank accounts, local insurance, etc.) and express the intention to reside there for at least 90 cumulative days per year.
Financing Your Purchase as a French Investor: Local Banks, International Credit, or Cash?
For a French investor, it is possible to invest in the Bahamas without being a multi‑millionaire in cash, but access to credit remains more demanding than in France, Canada, or the United States.
Local Real Estate Loans for Non‑Residents
Several large banks established in the Bahamas – CIBC FirstCaribbean, RBC Royal Bank, Scotiabank, as well as local banks like Commonwealth Bank or Fidelity Bank – offer real estate loans to non‑residents.
Typical conditions for a foreign buyer:
– down payment often between 30 and 50%,
– loan‑to‑value (LTV) typically limited to 50–70% of the estimated property value,
– minimum amounts (generally from $150,000),
– repayment term between 15 and 20 years, up to 30 years for some profiles,
– interest rates most often variable, indexed to the Bahamian prime rate (around 4.25% in early 2026), with a margin of 2 to 4 points,
– fixed rates sometimes offered between 6 and 8%,
– strict solvency requirements (stable income, satisfactory credit history, debt below 35–40% of monthly income).
To obtain a loan, banks generally require: ID, proof of address, proof of income (pay stubs, employment contract or proof of stable self‑employment), tax notices or returns, bank statements for 6 to 12 months, a bank reference letter, a property appraisal, and if the project is rental, a business plan.
Application fees, processing times (4 to 8 weeks on average), and the requirement for certified translation of French documents into English should be factored into the project timeline.
Borrowing in Your Home Country and Buying “Cash” in the Bahamas
Many high‑net‑worth buyers use another strategy: raising debt in their home country – for example, a mortgage on their French residence, a credit line backed by a securities portfolio, or an interest‑only loan – then paying for the Bahamas purchase in cash. To the seller, the transaction appears as a cash purchase, which facilitates negotiation.
Rates on secured financing in the local market often fall between 4 and 8% in 2026.
Seller Financing, Developer Financing, and Private Loans
In some new projects – luxury condos, residences under construction – the developer may offer financing on part of the price, with a progressive payment schedule and sometimes interest‑only periods during construction. Rates, however, remain high (often 10–15% for terms of 5 to 7 years).
Private loans (“bridge loans”) complete the panel for very short‑term needs: quick acquisition, renovation, speculative operation. They come with rates around 10 to 14%, for 1 to 3 years, and a large down payment (often 40–50% on vacant land, for example).
Finally, one should not underestimate the importance of cash in luxury transactions: local data indicate that about 70% of international high‑end purchases in the Bahamas are all‑cash. This practice reflects the client profile (ultra‑wealthy, family offices, private funds) and makes it possible to secure rare assets without a credit contingency.
Regulations, Purchase Procedure, and Legal Security
For a French person accustomed to notaries, land registers, and tightly regulated sales agreements, the Bahamian system can be surprising. It operates on a regime of “unregistered titles”, making the role of the lawyer absolutely central.
Right to Buy and the International Persons Landholding Act
Foreigners enjoy the same freehold property rights as citizens, with very few limitations. The International Persons Landholding Act (1994) governs acquisitions, but in most cases, a non‑Bahamian buyer does not need prior authorization for:
– a first residence occupied by the owner,
– a dwelling or land under two acres intended for building a family home.
However, certain cases require a permit before the transaction:
– unimproved land of two to five acres or more depending on use,
– property intended for commercial or professional rental use,
– tourism development or resort projects.
In all cases, after signing, the acquisition must be registered with the Bahamas Investment Authority via a Certificate of Registration for non‑Bahamians or permanent residents. This certificate must be annexed to the deed and filed with the registry; otherwise the registration may be considered void.
Key Steps of an Acquisition for a French Investor
The standard purchase process proceeds as follows:
The buyer submits a written offer through an agent, then signs an Agreement for Sale drafted by the lawyers. A 10% deposit is placed in an escrow account. The lawyer conducts thorough due diligence (title search over 30 years in multiple registers) and technical inspections are performed. Necessary approvals are sought (Bahamas Investment Authority, Central Bank). Finally, since 2025, an official VAT invoice is required before deed registration.
Electronic signatures are not accepted for real estate transfers: deeds must be signed manually, notarized, and presented in original. A power of attorney can be given to a local lawyer to sign on the buyer’s behalf if they cannot travel.
Role of the Lawyer: Non‑Negotiable
Unlike the French model, where the notary is the central actor, in the Bahamas legal security rests on the lawyer’s work. For a foreigner, it is imperative to have their own counsel and never rely on the seller’s lawyer. The title opinion issued by the buyer’s lawyer effectively constitutes a form of “insurance”: it engages their professional liability by certifying that the property is freely transferable and the chain of title is clean.
Why the Bahamas Over Other Caribbean Destinations?
Compared to other jurisdictions like Antigua, Grenada, Barbados, or the Cayman Islands, the Bahamas positions itself as a “premium, safe, high‑entry‑cost” market, with moderate yields but superior market depth and stability.
A comparative summary places the archipelago in this range:
– average entry price: $800 to $1,500 per square foot (roughly $2,200 to $5,000 per m²),
– gross yield: 4 to 6% (up to 8–12% on very good short‑term products),
– target investor profile: capital preservation, high legal security, wealthy clientele, low risk.
Compared to Antigua, which generally offers higher gross yields (5–8%) for lower entry prices, the Bahamas stand out for:
This destination offers a wider range of ultra‑luxury properties, including private islands and very exclusive beachfront villas. It benefits from a more mature tourism infrastructure and a deeper short‑term rental market, especially on Airbnb. Furthermore, property rights and perceived security are superior to those of emerging markets like the Dominican Republic.
Compared to the Cayman Islands, which are even more expensive (around $10,300 per m² on average), the Bahamas offer a wider range of products – from a $400,000 condo to a $20 million villa – and a more diversified seasonal rental market, with generally slightly higher yields.
For a French investor, these characteristics translate into a strategic choice: accept a higher entry ticket and higher operating costs than the Caribbean average, in exchange for better liquidity, strong international demand, and a particularly stable legal and tax framework.
In Summary for a French Investor
Real estate investment in the Bahamas in 2026 is clearly aimed at a profile of already‑structured savers: substantial wealth, tolerance for a high entry ticket, medium/long‑term holding horizon, and desire to diversify both geographically and fiscally.
The strong points are hard to ignore:
– a market driven by record tourism and high‑spending international clientele,
– a rare supply of properties in the best locations, supporting price increases,
– a complete absence of local income tax, capital gains tax, and inheritance tax,
– attractive rental yields on short‑term rentals in high‑demand areas,
– a clear and powerful permanent residence by investment program.
This includes a cost of living about 30% higher than in the United States, exposure to hurricanes, significant local costs (insurance, logistics, maintenance), tax complexity with France in the absence of a full bilateral treaty, and the need for high‑level legal and tax advice.
For a French investor ready to surround themselves with experts and think long term, the Bahamas offer a rare combination: a dream destination, a premium growing real estate market, a wealth planning tool, and potentially a gateway to a change in tax residency. A cocktail as seductive as it is technical, deserving to be approached with as much rigor as dreams of turquoise lagoons.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
