Buying Real Estate in The Bahamas
For years, the real estate industry in The Bahamas has been in the dark about the pitfalls of buying property in The Bahama Islands. Fortunately, there is now a handbook that will help you navigate the process. In 1994, the Bahamas Real Estate Association published a handbook to help people buy and sell real estate in The Bahamas. Throughout the book, you will find practical tips on how to make the most of buying and selling real estate in The Bahamas.
The process of purchasing Bahamas real estate begins with registering the property. Once the property is registered, the owner must fill out a Declaration of Real Property Form. This form must be signed by the owner and witnessed by an authorized person. Authorized persons may include a magistrate, a registered medical practitioner, a bank officer, a minister of religion, a notary public, and more. Tax payments must be made by bank draft, or by international postal order. Personal cheques are not accepted. Foreign cheques must be bank certified or drawn on a US or Bahamas bank.
Property in The Bahamas is popular with second-home owners and investors looking for a getaway or vacation home. Property prices in The Bahamas are generally higher than their Caribbean neighbors. According to a recent article in the Bahamas Guides, the average real estate price in The Bahamas is 37% higher than its neighbors. This stable economy and attractive tax advantages are also important factors for Bahamas real estate. Therefore, if you are looking for a home in The Bahamas, you’ve come to the right place! The Bahamas real estate market continues to grow and attract buyers from around the world.
Property prices in The Bahamas were already declining even before the outbreak of the coronavirus disease, according to Engel & Volkers, which has led to a 30% decline in residential sales in 2019. In March 2020, the Bahamas government closed its borders to international tourists to avoid the spread of the disease, which has caused the prices of homes in The Bahama Islands to plummet. As a result, tourist arrivals in Q1 2020 fell 14.7% year-over-year, and air travel fell by 28%. The situation is expected to worsen in Q2 2020.
Foreign homebuyers in The Bahamas are mostly from the United States, Canada, France, Britain, and Italy. Foreigners buying property in The Bahamas may need a permit to build a business on the property. For large projects, however, a permit is required from the Government. After a successful transaction, the foreign property must be registered with the Central Bank and Investment Board. It is advisable to read the Global Property Guide to learn about the international real estate market.
The Bahamas has several policies in place to encourage foreign investors to purchase property in The Bahamas. The International Land Holdings Act of 1993, for example, has made it easier for foreigners to buy property in The Bahamas. Foreign buyers of Bahamas property are required to register with the Central Bank and Investments Board before buying a property, and the process costs between $25 and $100. It is also advisable to read the International Land Holdings Act and the Bahamas Real Estate Code before investing.