Working in the Bahamas is something that has no replacements. The sandy beaches and the exquisite islands will appeal to anyone. However, when it comes to the property, there are a lot of factors that need to be understood. Investing in any country needs thorough research, and when it comes to the Bahamas, it has more than enough opportunities for you to invest in a lot of sectors. The country attracts millions of tourists in a single year, and this continues to rise. In addition to that, the policies of the country are favourable to the investors, and they have access to financial institutions as well. The country offers benefits to the investors in terms of taxation laws and is one of the factors that has led to its investing popularity.
In the case of the rentals of the properties, there are two kinds; common and short-term. This will cover the holiday as well as the vacation. For a start, the tenant will be required to pay the security deposit, the first-month advance, and the last months. However, the terms can be negotiated between the tenant and the owner under mutual terms. There are no government regulations, and the agreement is more pro-tenancy. In the case of the tenancy in sufferance, the landlord can have the police called, and that doesn’t even require the court order.
International Persons Landholding Act
For foreigners who are looking forwards to invest in the country as well as rent out their property, they will need to register their property with the Bahamas Investment Authority. It will include various kinds of fees that will be required to pay.
The application fee is $25, the application for a permit is $25, and you can get the permit for $500. However, there is a variety of fees for the certification of registration. For lesser than 50k, or equal, you will need to pay $50. If that’s between $50k – 101, then a fee of $75. More than that will have $100. The category of the permit will determine the fees that will be levied and required to pay.
In addition to that, the homes that are owned by the foreigners will need to apply for a permit to operate on a rental basis. Some taxes will be levied, and they are as follows:
If the property is between $250K and 500k, then a tax of 0.75, however, if the market value is lesser than $250k, it will be exempted. Properties that are above $500k, will need to pay 1%. In addition to that, an additional 10% of the hotel guest tax will be collected from the tenants of each room.
Taxes when you are purchasing a home:
• Whether the property is being bought or sold, stamp tax, as well as value added tax, will need to be paid. This is as follows:
• On Real Estate: 2.5% Stamp Tax.
• If the transaction is over $100,000: 7.5%
• 7.5% will also be charged in services including appraisals, commissions, and other kinds of mandatory legal fees.