How Foreigners Can Buy Property in the Bahamas
The Bahamas is one of the more straightforward places for a foreigner to buy property. There are no nationality restrictions, freehold title is the norm, and for a straightforward holiday home the government paperwork amounts to registering the purchase after completion.
The rules sit in the International Persons Landholding Act. Whether you simply register or need advance permission depends on the size of the land and what you plan to do with it, so it pays to get that distinction right before you sign anything.
Registration: the default for a home of your own
If you are buying a home to use yourself, or undeveloped land of less than two contiguous acres on which to build one, you do not need permission in advance. The sale completes first and your attorney then registers the acquisition with the Investments Board, which issues a certificate of registration.
Law firm Lennox Paton, in its Legal 500 Bahamas real estate guide (updated February 2025), notes that registration is the route for first-time residential purchases and for permanent residents of The Bahamas, and that the certificate carries a fee of $1,000.
- Certificate of registration is applied for after closing, not before
- Covers an owner-occupied residence or undeveloped land under two contiguous acres
- Government fee of $1,000, according to Lennox Paton
When you need a permit before you buy
A permit from the Investments Board must be in hand before closing where the purchase falls outside that owner-occupier category: undeveloped land of two or more contiguous acres, property bought for rental, commercial or development purposes, or second and subsequent acquisitions. The permit fee is also $1,000.
One recent change matters for planning. Since 1 July 2024 a permit expires if, within 180 days, the buyer has not paid the VAT due on the transaction and filed a change-of-ownership notice with the Department of Inland Revenue, according to Lennox Paton's Legal 500 guide.
- Permit needed for two or more contiguous acres of undeveloped land
- Also required for rental, commercial or development use
- Since July 2024, permits lapse if VAT and ownership paperwork are not completed within 180 days
How the purchase itself works
Bahamian conveyancing is attorney-led. Your attorney investigates the title, gives an opinion on it, drafts or reviews the sale agreement, and handles Investments Board registration or permits; Central Bank approvals may also be needed for foreign-currency matters, as a 2021 legal guide published by Eyewitness News explains.
On tax, non-Bahamian buyers pay VAT on the conveyance at a flat 10 per cent of the value, a rate set by a 2023 amendment to the Value Added Tax Act. In practice the VAT is customarily split 50/50 between buyer and seller unless the contract says otherwise, and a further 1 per cent VAT applies to the amount of any mortgage.
- Use a Bahamian attorney; they investigate and opine on title
- VAT on the conveyance is a flat 10% for foreign buyers
- Customary 50/50 buyer-seller split of VAT, subject to negotiation
- 1% VAT on the amount borrowed under a mortgage
What ownership does (and does not) do for residency
Owning a home does not confer residency by itself, but it opens doors. The Department of Immigration issues a Home Owner's Identification Card, a residence permit created under the International Persons Landholding Act that eases entry for owners of a habitable residence in The Bahamas; the processing fee is $200.
Property ownership can also anchor an application for annual residence or, at a higher level of investment, economic permanent residence. The Department of Immigration currently states a minimum investment of $1.0 million, held for at least ten years, for economic permanent residency.
- Home Owner's Identification Card: $200 processing fee, eases entry for owners
- Economic permanent residence requires a minimum $1.0m investment per the Department of Immigration
Points that catch buyers out
Older guides refer to stamp duty on Bahamian property purchases. That is out of date: under the Stamp Act 2024, in force since 1 July 2024, deeds of conveyance of realty are exempt from stamp duty because property transfers are taxed under the VAT regime instead.
Budget changes each July can move rates and thresholds, so treat any figure as a snapshot and confirm with the Department of Inland Revenue before exchanging. If you are still choosing where to buy, Habio's Bahamas listings and area guides are a sensible place to compare islands before you engage an attorney.
- Stamp duty no longer applies to property conveyances; VAT does
- Rates change at budget time (July) — verify with the Department of Inland Revenue
- Real estate agents customarily charge 6% on improved property and 10% on undeveloped land, per Lennox Paton
Frequently asked questions
Can foreigners own freehold property in the Bahamas?
Yes. There are no nationality restrictions and freehold ownership is standard. A single owner-occupied home on under two contiguous acres only needs to be registered with the Investments Board after completion under the International Persons Landholding Act.
Do I need government approval before buying property in the Bahamas?
Only in some cases. A prior permit is required for undeveloped land of two or more contiguous acres, for property bought for rental, commercial or development use, or for second and subsequent purchases. An owner-occupied first home is simply registered after closing; both routes carry a $1,000 fee.
How much transfer tax does a foreign buyer pay in the Bahamas?
VAT at a flat 10% of the property value applies to conveyances to non-Bahamians, under a 2023 amendment to the Value Added Tax Act. It is customarily split equally between buyer and seller unless negotiated otherwise.
Does buying a house in the Bahamas give me residency?
Not automatically. Owners can apply for a Home Owner's Identification Card ($200) to ease entry, and property can support an annual or permanent residence application. Economic permanent residence requires a minimum $1.0 million investment held for at least ten years, per the Department of Immigration.
Is there stamp duty on Bahamas property purchases?
No. Since 1 July 2024 the Stamp Act 2024 exempts deeds of conveyance of realty from stamp duty; property transfers are taxed under the VAT Act instead.
Sources
- Lennox Paton — Guide to Purchasing Property in The Bahamas
- Lennox Paton — Legal 500 Bahamas Real Estate Comparative Guide
- Bahamas Department of Immigration — Home Owner's Identification Card
- Department of Inland Revenue — VAT legislation (Value Added Tax Act and amendments)
- Eyewitness News — A basic guide: the legal process to buying property
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.