When you’re looking to purchase a piece of Bahamas real estate, you have many options to choose from. You’ll find everything from luxury homes to Paradise Island condos for rent. This Caribbean island nation has something for everyone. You’ll find the best golf courses, spas, and shopping, as well as some of the most opulent homes in the world. However, you need to know that it’s important to do your research before you make any decisions.
Buying or selling real estate in The Bahamas can be a tricky process. In some cases, it’s possible to find a buyer or seller with a questionable history. Check the Bahamas government’s records to see who owns the property. Make sure to check out any previous tax payments to ensure you’re getting what you pay for. Also, make sure to research the Bahamas’ legal system. It can be confusing when you’re dealing with foreign investors.
While demand for residential properties in The Bahamas was soaring prior to the outbreak of the coronavirus, demand is now down by 20 percent. In 2019, Engel & Volkers reported 20 percent fewer residential sales. This is expected to continue in 2020, after the Bahamas closed its borders to international tourists in March. However, tourism is expected to decline by 14.7% y-o-y in Q1 2020, and the same is likely to happen again in Q2 of 2020.
Non-Bahamians can also purchase Bahamas real estate. The Bahamas has many policies geared toward international investors. The International Land Holdings Act 1993, for instance, was created to make the purchasing of Bahamian property more accessible for non-nationals. To purchase Bahamas property, non-Bahamians need to register with the Investments Board. Registration fees typically range from $25 to $100. If you are considering purchasing Bahamas real estate, make sure you ask your broker about the requirements.
Bahamian land law is based on ancient forms and languages, and a conveyance is usually drafted by an attorney who acts on behalf of the buyer and seller. It also requires a stamp and recording of documents. A stamp duty is charged on each transaction, which is a significant source of revenue for the government. It is also important to note that Bahamian real estate is tax-exempt until 2015, allowing the development of the port area while providing employment for residents.
Before you invest, you’ll need to decide how you’re going to finance your project. While most deals don’t require a loan, the Bahamas has strict guidelines for financing and property ownership. A Bahamian can purchase residential property directly, through a partnership, or bahamas real estate through a trust. A company formed elsewhere must incorporate in The Bahamas. While proof of ownership isn’t required in most transactions, it is necessary for the Bahamian government to ensure that the investor is who they claim to be.
A real estate listing service is another option you may want to consider. A Bahamas Multiple Listing Service is a cooperative data exchange program between participating brokers. Its listings include all of the properties in a broker’s database. Other brokers’ listings are marked with the IDX symbol, which means they’ve agreed to exchange property information. While you can use the Bahamas Multiple Listing Service to get information about properties, you’ll want to do so cautiously.