Buying Property in The Bahamas: A Guide for Foreigners

Published on September 29, 2025 and written by Cyril Jarnias

The Bahamas, with their white sand beaches and crystal-clear waters, have long attracted foreign investors seeking a tropical paradise. This Caribbean archipelago offers not only an idyllic living environment but also a favorable setting for international real estate investments. In this article, we will explore in detail the property purchasing process for foreigners in the Bahamas, covering the legal, tax, and practical aspects of this endeavor.

The Bahamian Dream: A Reality Accessible to Foreign Investors

Good news for international investors: the Bahamas welcomes foreign buyers with open arms. Unlike some countries that impose strict restrictions on foreign ownership, the Bahamas have adopted an open policy favorable to international real estate investments.

Foreigners can acquire residential, commercial properties, or even undeveloped land in the Bahamas without major restrictions. This openness aligns with the Bahamian government’s desire to stimulate the local economy and attract foreign capital.

However, it is important to note that specific regulations apply, particularly for large-scale purchases or in certain strategic areas. For example, acquiring properties valued over 500,000 Bahamian dollars (approximately 500,000 US dollars) requires obtaining a registration certificate from the Bahamas Investment Board.

Navigating Legal Waters: Real Estate Regulations and Obligations

The legal framework governing property purchases in the Bahamas is relatively straightforward, but it includes some particularities essential to know:

1. The land ownership system: The Bahamas use a common law system inherited from British law. Property titles are typically held in freehold, offering considerable legal security for investors.

2. Transaction registration: All real estate transactions must be registered with the Registry of Records. This step is crucial to ensure the validity and legal recognition of your acquisition.

3. Government approval: For purchases exceeding 500,000 Bahamian dollars, an approval application must be submitted to the Bahamas Investment Board. This process aims to ensure the investment aligns with national interests.

4. Restrictions on undeveloped land: Although foreigners can buy undeveloped land, specific regulations exist regarding their development. Construction generally must begin within two years of purchase.

The Caribbean Tax Haven: Understanding International Taxation in the Bahamas

One of the major attractions of the Bahamas for international investors lies in its particularly advantageous tax regime. Here are the key points to remember:

1. No income tax: The Bahamas do not levy income tax, whether for individuals or businesses. This means rental income generated by your property will not be taxed locally.

2. No capital gains tax: There is no capital gains tax on real estate in the Bahamas. If you decide to resell your property at a profit, you will not be taxed on the capital gain realized.

3. Stamp duty: The main tax to consider when purchasing property is stamp duty. It generally amounts to 10% of the property’s value, shared equally between the buyer and seller (5% each).

4. Value Added Tax (VAT): A 12% VAT applies to certain real estate transactions, particularly on legal fees and real estate agent commissions.

5. Tax implications in your home country: Although the Bahamas offer an attractive tax environment, it is crucial to consider the tax implications in your country of residence. Some countries may tax income or capital gains generated abroad.

Building a Solid File: Essential Documents for Your Acquisition

To successfully carry out your property purchase project in the Bahamas, you will need to gather a number of documents. Here is a list of essential items:

• Valid passport
• Recent proof of address
• Bank statements from the last 6 months
• Proof of funds origin (for significant transactions)
• Birth certificate
• Marriage certificate (if applicable)
• Bank reference letter
• Police certificate (clean criminal record)

For purchases requiring approval from the Bahamas Investment Board, additional documents may be required, such as a business plan or proof of your financial capacity.

The crucial role of the local attorney: It is highly recommended to enlist a Bahamian attorney specialized in real estate law. This professional will guide you in preparing your file and ensure all necessary documents are in order.

The Path to Your Tropical Paradise: Key Steps of the Acquisition

Here is an overview of the main steps in the property purchasing process in the Bahamas for foreigners:

1. Property search and selection: Identify the property that matches your criteria, ideally with the help of a licensed local real estate agent.

2. Due diligence: Conduct a thorough verification of the property title and history. Your attorney will play a crucial role in this step.

3. Purchase offer: Submit a formal offer, usually accompanied by a deposit.

4. Sales contract: Once the offer is accepted, a sales contract is drafted and signed by both parties.

5. Government approval application: If necessary, submit an application to the Bahamas Investment Board.

6. Financing: Finalize your financial arrangements, whether through a local mortgage or international financing.

7. Closing: Once all conditions are met, the transaction is finalized before a notary, funds are transferred, and property titles are registered in your name.

Conclusion: Your Paradise Investment Awaits

Investing in real estate in the Bahamas represents a unique opportunity to combine pleasure and financial strategy. With its dream beaches, ideal climate, and advantageous tax regime, the archipelago offers an ideal setting for long-term investment or a luxury second home.

Although the purchasing process is relatively straightforward for foreigners, it is crucial to prepare well and surround yourself with competent professionals. A good understanding of local regulations, wise tax planning, and thorough due diligence are the keys to a successful investment in the Bahamas.

Whether you dream of a beachfront villa, a luxury apartment, or land to develop your own project, the Bahamas offer a range of opportunities to realize your Caribbean dream.