Important Information About Bahamas Real Estate for Sale

As a buyer or seller in the Bahamas real estate market, you should have a thorough understanding of the details involved in purchasing or selling a property. This includes knowing about our local laws and regulations, taxes, financing options, and potential hidden costs.

The Bahamas real estate market is constantly evolving and can be complex, making it essential to work with a knowledgeable and reputable brokerage like Kikivarakis Properties. With our extensive experience and expertise in the local market, we can guide you through the process of buying or selling a property in the Bahamas, ensuring that you make informed decisions every step of the way.

Don't risk facing unexpected challenges or costs when buying property in the Bahamas. Trust Kikivarakis Properties to provide you with all the necessary information and support needed to make your real estate journey a smooth and successful one. Let us help you find your dream property in this beautiful and vibrant country, while also ensuring that you have all the details and knowledge necessary for a confident purchase of Bahamas real estate for sale.

Discover more below, and contact us if you have any questions.

VAT ranges from 2.5% to 10% for sales transactions:

• 2.5% - properties valued at $100,000 or less
• 4% - properties valued between $100k - $300k 
• 6% - properties valued between $300k - $500k
• 8% - properties valued between $500k - $700k
• 9% - properties valued between $700k - $1M 
• 10% - properties valued over $1M.

Note: VAT is 10% for Non-Bahamians and all companies.

*In The Bahamas this is usually split 50/50 between buyer and seller. This is subject to change during negotiations if the buyer and seller agree to a different deal structure.

4% - properties valued between $300k - $500k. 

VAT is generally split equally between the purchaser and the seller. Even though this is typical it is subject to change during negotiations if the buyer and seller agree to a different deal structure.

The initial $250,000 in the value of owner-occupied property is exempt from RPT.
The rate is 0.75% on the portion  between $250k - $500k.
The rate is 1% on the portion over $500k.
There is a ceiling of $60,000 for RPT on owner-occupied homes. 

For vacant land owned by Bahamas (that is not exempted under the provisions of the Real Property Tax Act Section 39):

• It's $100.00 on the part of valued up to $7k.
• Then 1.5% per on any amount exceeding $7k.

• It's 1% not exceeding $500k.
• Then 2% on any amount exceeding $500k.

Properties (owned by Bahamians) and in the Family Islands is exempt from RPT.

Also exempt from Real Property Tax:

• Vacant property owned by Bahamians (in New Providence or the Family Islands), without additions or any works benefiting the land that hasn't increased the value by over $5k.
• Charitable or public service property.
• Property in Freeport, Grand Bahama. 

2% of the sales price is a good estimate for legal fees. (10% Govt. VAT is charged on legal services fees). 

6% is standard for developed properties and 10% standard for vacant properties. (10% Govt. VAT is charged on real estate commission fees).  

*In The Bahamas the seller is typically responsible for paying the real estate commissions. This is subject to change during negotiations if the buyer and seller agree to a different deal structure.