Frequently Asked Questions about Real Estate in The Bahamas
Take a look at these questions and see if you find an answer.
Take a look at these questions and see if you find an answer.
First, find an agent you think you will work well with and have an initial consultation. Be very honest about your goals, objectives and timelines. If it's not a good fit, move on. Selling your property successfully involves the right combination of pricing, preparation, communication, marketing and negotiations. You want to work through that process with someone who is experienced, professional and responsive.
Know Your Client (KYC) documentation is now required by law for resident and non-resident sellers irrespective of citizenship. The KYC process should be complete at the time you list your property for sale with an agent. KYC documentation is not needed if you are listing your property for lease only.
Research proves that staging results in selling a property faster and for more money. The greatest attention your property receives is the first three weeks on the market. You want to ensure that the best first impression is made with the photography and other media used to market your property as well as the with the buyers who walk through the door. Read more about staging and if it's the right decision for you.
Real estate commission on the sale of developed property is 6% and 10% on vacant land. In a traditional transaction the real estate commission is paid by the seller. Real estate commission attract VAT at 10%. Net transactions are less common and involve the buyer paying the real estate fees.
Closing costs are fees due before or at the time that the property transfers ownership. Examples include VAT, appraisal fees, legal fees, real estate commission, property insurance, inspection, HOA and utility balances and deposits, etc. The fees you pay will depend now whether you are buying or selling.
Yes. Costs can be estimated as a percentage of the purchase price. For the Seller One-half VAT on the conveyance - Real Estate Fees 6% plus 10% VAT Legal Fees 2.5% plus 10% VAT Consider also all utility balances, real property taxes owing and outstanding HOA fees.
VAT on the conveyance is generally shared 50/50 between the buyer and seller unless otherwise negotiated. For properties below $100,000 VAT on the Conveyance is 2.5% $100,001 - $300,000 - 4% $300,001 - $500,000 - 6% $500,501 - $700,000 - 8% $700,001 - $1 million - 9% More than $1 million - 10% Important Notes: -The above VAT structure on the conveyance of real property does not apply to corporations
No. Every property represented by licensed BREA brokers and agents is listed with a Gross Price. However, a net transaction can still be negotiated between the buyer and seller at the time the offer is made.
As opposed to a typical 'gross' transaction, a net transaction involves the buyer paying all closing costs on both sides of the deal so that the seller 'nets' an agreed amount.
No. If you are not a Bahamian citizen you may list your property for sale in USD. If the property is listed in USD and the buyer is Bahamian, then the conversion fees will be paid by the buyer unless otherwise negotiated at the time the offer is made.
The Bahamas MLS is a cooperative platform used by licensed brokers and agents who are members of the MLS to share listing details on properties for which they have an exclusive right to sell agreement. The primary benefit of the MLS is that it gives a listing the widest possible visibility in the marketplace through automatic 'propagation' to cooperating broker websites and even international real estate websites such a realtor.com. The main drawback of the MLS is that you are obligated to pay the commission on any sale even if the buyer approaches you directly.
Yes. Your agent will need to complete a form that will require approval by you and the broker.
No. But it is in your best interest to do so unless there is a good chance you will sell you property yourself. With a dedicated listing agent you are likely to receive a greater level of commitment than having multiple agents as occurs when you have an 'open' listing.
No. There is nothing prohibiting a seller from working with multiple agents. If you do, this will be an 'open' listing and your property will not appear on the MLS. So consider if this is the ideal scenario for you. Properties listed on the Bahamas Multiple Listing Service have incredible reach through hundreds of agents and many broker websites including foreign real estate sites like realtor.com. This all happens automatically and allows all MLS agents to market your property to their buyers. An 'open' listing has much less visibility because it is uploaded to one broker's website only and that site must be searched directly in order to find the listing. Unless you have a very good chance of selling your property on your own then the MLS is your best option. Find an agent you can work well with and have them list your property on the MLS.
First, find an agent you think you will work well with and have an initial consultation. Be very honest about your goals, objectives and timelines. If it's not a good fit, move on. Buying real estate can be a bit stressful and also it can take some time to find a property you love and get to the closing table. To make the process as enjoyable as possible, work with someone you like and trust and it's really best for everyone to make that decision early.
Expect an experienced agent to ask you questions related to your real estate needs and other objectives. This is important because your purchase decision impacts other outcomes. For example, if you are interested in seeking permanent residence in The Bahamas you will need one purchase of $750,000 or multiple purchases that amount to the minimum threshold for permanent residence. Your agent may also introduce you to an attorney if you don't already have one. Attorneys are needed to close real estate transactions in The Bahamas. Be open with your agent about what you would like to accomplish so that they can give you the best guidance possible.
Know Your Client (KYC) documentation is now required by law for resident and non-resident buyers irrespective of citizenship. The KYC process should be complete at the time you commit to looking at properties with your agent and no later than at the time you make an offer to purchase a property. Your attorney will have their own KYC due diligence process for you to complete; it is recommended that you begin this process before making an offer so there are no delays in transferring your deposit to your attorney once your offer has been accepted. KYC documentation is not needed for those leasing property.
It varies! 5% to 10% of the purchase price for local mortgages with mortgage indemnity insurance, pending your bank's decision. 20% of the purchase price without mortgage indemnity insurance. 10% of the purchase price for cash transactions. 30% of the purchase price for non-resident USD mortgages.
To close very comfortably I recommend that my clients have an additional 10% of the purchase price saved for closing. If you are a first-time home buyer and qualify for the VAT Exemption on the Conveyance then a lower percentage available in cash for will be ok for a comfortable closing.
Closing costs are fees due before or at the time that the property transfers ownership. Examples include VAT, appraisal fees, legal fees, real estate commission, property insurance, inspection, HOA and utility balances and deposits, etc. The fees you pay will depend now whether you are buying or selling.
Yes. Costs can be estimated as a percentage of the purchase price. For the Buyer VAT on Conveyance (one-half of the assessed VAT) Legal Fees 2.5% (estimate) plus 10% VAT The buyer will also pay appraisal and inspection costs if applicable, utility deposits and property insurance (mandatory if the property is mortgaged). These additional fees incur VAT tax at a rate of 10%.
No. For properties below $100,000 VAT on the Conveyance is 2.5% $100,001 - $300,000 - 4% $300,001 - $500,000 - 6% $500,501 - $700,000 - 8% $700,001 - $1 million - 9% More than $1 million - 10% Important Notes: -The above VAT structure on the conveyance of real property does not apply to corporations - First-time Home Buyers who are Bahamian will pay 4% VAT when the property value is between $300,000 - $500,000 - VAT on the conveyance is generally shared 50/50 between the buyer and seller unless otherwise negotiated
Real estate commission on developed property is 6%, and 10% on vacant land. In a traditional transaction the real estate commission is paid by the seller. Net transactions are less common and involve the buyer paying the real estate fees. Real Estate Fees incur VAT tax at 10%.
As opposed to a typical 'gross' transaction, a net transaction involves the buyer paying all closing costs on both sides of the deal so that the seller 'nets' an agreed amount.
No. Every property represented by BREA Licensed Brokers is listed with a Gross Price. However, a net transaction can still be negotiated between the buyer and seller.
Yes, foreign buyers can secure a non-resident USD mortgage to purchase real estate in The Bahamas. Let me know if you would like to be connected with a local mortgage specialist. More information can be found on Royal Bank of Canada's website.
No. You are not tied to a single agent as a buyer. However consider if you want to work with multiple agents which can potentially get messy if you are not careful and different agents 'introduce' you to the same property. My advice, find an agent that you like and trust and work with them. If they let you down you can part ways with no obligation and move on but until then you will be better represented by an agent who knows that you trust them to represent your best interests.
Real property tax is assessed annually in The Bahamas. It is a graduated tax and there are differences in assessment based on location, use (residential vs. commercial) and ownership. In summary, Bahamians do not pay real property tax on vacant land anywhere in the country. Non-Bahamians do pay taxes on vacant land. Almost everyone pays real property tax on developed property. To get the skinny on Real Property Tax calculations review this useful FAQ.
Economic permanent residence is available to non-Bahamians who purchase real estate with a total or cumulative value of $750,000. An attorney or immigration specialist can support you through the process. There are important details relating to expedited permanent residence, applying for spouses/partners, dependent minors and persons on the conveyance. Here are all the details on eligibility and the application process.
This is an option for those not interested in permanent residence or those investing below the minimum threshold. This identification card allows you ease of entry and unlimited stays in the country. It is renewable each year. More details and the application form are available here.
The Bahamas Real Estate Association's website has a Find An Agent feature which you can use to check if someone holds a current license to practice real estate in The Bahamas.
Yes. You can search the Bahamas MLS for properties and contact the listing agent or share the property with the agent you wish to work with. Your agent will then make contact with the listing agent and arrange to show the property with you.
Yes. The Bahamas is a stable political and financial jurisdiction with a long history of peaceful transitions of government and a currency that is tied to the US dollar. To read more about the financial and economic environment, visit the Bahamas Financial Services Board.