The Bahamas is a country that minces no words when it presents itself as the haven for foreign investments. From the properties to the exquisite islands, the country is an excellent location and offers generous investing options. In addition to that, the government of the country offers favorable tax laws and access to financial institutions to boost investors. However, property taxes can matter and are impacted by various factors that need to be kept in mind when buying the property.
If the total value of the property is under $100,000, then the amount of VAT that is levied will be 2.5%. However, if that’s above the amount, then a VAT of 10% will need to be paid. In addition to that, the tax will be equally shared between the buyer and the sellers, or whatever agreement that they agree to. Also, the owner is exempted on the first $250,000. However, if the value is between $250,000 to $500,000, then the rate will be ¾ of the percent. If the value is above $500,000, then it will be 1%.
If the market value doesn’t exceed the total of $500,000, then the tax of 1% per annum will be levied. However, if it exceeds the said amount, then a total of 2% will be charged. It’s equally important to mention that the property that will be owned by the citizens on the Family Islands will be exempted from the duty. The property that is defined as commercial farmland will offer the tax exemption.
If the property is also used for charitable or public service will also be exempted from the tax, however, it will need to be a Bahamas property. In addition to that, all the property located in Freeport will also be exempted from taxation. It’s equally important to mention that a tax of 10% will be levied during the appraisal.
Besides that, if the owners of the rental homes wish to rent their properties, then they will need to register the properties. They must remain in their properties for six months or a year to get the owner-occupied status in the country.
There are also residency options for those who have properties that value at $750,000. They will need to declare that they wish to live permanently in the country. The residency cards will have to be renewed annually, however; they must substantiate their financial support in writing. Those who are owning property in the Bahamas will be eligible for the Annual Residency cards. In the case of the Visas, there is a certain relaxation for those coming from the UK, US, and Canada given that the stay doesn’t exceed more than three weeks. In case of the US citizens, the visit mustn’t exceed 8 months. The permits will be required to reside, work, or indulge in business in the country. With all that mentioned, the country’s taxation laws are favorable for operating and investing in the business.