The Bahamas is a stunning archipelago with hundreds of islands. This tropical island country has an investor-friendly tax regime, world-class golf courses and spas, and some of the best luxury homes in the Caribbean. Buying property in the Bahamas is a great way to enjoy a tropical lifestyle and enjoy the many benefits the country has to offer.
Real estate investors can invest in the Bahamas’ real estate market by purchasing shares of the Bahamas Property Fund. The fund owns and manages three commercial properties in The Bahamas, including the Bahamas Financial Centre and Providence House. These properties are leased to a wide range of industries. Shares of the fund trade on the Bahamas International Securities Exchange under the symbol BPF. The fund is managed by the Royal Fidelity Bank & Trust, and has over $700 million of assets under management and administration.
The Bahamas government allows non-Bahamians to purchase property, including land. The International Persons Landholding Act, 1993, grants foreigners the right to purchase property in the Bahamas. The law also permits foreigners to buy and sell single family homes. However, there are certain restrictions. It is best to check with a lawyer before purchasing property in the Bahamas.
The Bahamas mortgage market is declining, and fewer people are purchasing residential properties. According to the Engel & Volkers 2019 Real Estate Market Report, residential sales dropped by 20% last year. lyford cay bahamas rentals The government also decided to close the borders to international tourists in March 2020 to prevent the spread of the coronavirus. This meant that international tourists had less income to spend on purchasing property in The Bahamas. As a result, air and sea travel fell by almost 30 per cent and 10.5%, respectively. The figures are expected to fall even further in Q2 2020.
Investors who wish to buy property in the Bahamas should take advantage of the country’s wealth diversification opportunities. In addition to the financial benefits, there are also many opportunities for leisure. For instance, Nassau, located on the island of New Providence, is an excellent destination for vacationers. The city boasts great beaches and a thriving nightlife. Runners will enjoy the city’s many running trails.
The Bahamas’ safe investment climate and modern infrastructure make it a safe place to invest in property. The cost of buying property in the Bahamas is relatively low compared to other Caribbean destinations. Buyers should consider using the services of a lawyer if they are not familiar with the local laws and regulations. In addition, the stamp duty on property is between 4% and 10%, depending on the property’s value.
The Bahamas government has not been in turmoil for some time, but there are some things to consider when buying real estate. The Bahamas has no income tax, capital gains tax, or inheritance tax. The VAT tax is typically split between the buyer and seller. In addition, first-time buyers in The Bahamas can qualify for an exemption from the tax on residential property and vacant land.