Nassau or the Out Islands: Where to Buy in the Bahamas
The Bahamas is not one place but an archipelago the official tourism office groups into 16 major island destinations. For a property buyer the first decision is blunt: the convenience and depth of Nassau and Paradise Island on New Providence, or the space and seclusion of the Out Islands — above all the Exumas, Eleuthera with Harbour Island, and the Abacos.
Neither answer is wrong. What matters is being honest about how often you will visit, how you will get there, and how much infrastructure you want on your doorstep.
Nassau and Paradise Island: the full-service option
New Providence is the country's capital island and its commercial centre, with the main international airport, hospitals, schools and year-round services concentrated in and around Nassau. The tourism office pitches Nassau and Paradise Island as a dual experience — a historic capital city beside resort beachfront — and that duality is exactly what buyers get.
For anyone who wants easy direct flights, a deep pool of professionals (attorneys, surveyors, property managers) and the option of letting a property when not using it, this is the pragmatic choice. The trade-off is density: this is the busiest corner of the country.
- Main international gateway and the centre of services and employment
- Widest choice of gated communities, condos and resort residences
- Best suited to buyers who value convenience and lock-up-and-leave ownership
The Exumas: clear water and small-cay living
The Exumas are a chain of 365 islands and cays running south-east of Nassau, split between Great Exuma, Little Exuma and the Exuma Cays. George Town on Great Exuma is the main settlement, a few miles from Exuma International Airport (GGT); Staniel Cay in the cays has its own airstrip and port of entry, according to the official tourism office.
The Exuma Cays Land and Sea Park has protected nearly 130,000 acres of water and cays since 1958, and the area's shallow, vividly coloured banks are the reason the Exumas anchor the private-island end of the Bahamian market. Buyers here should plan around boat access and self-sufficiency for anything beyond Great Exuma.
- 365 islands and cays; George Town is the hub, served by Exuma International Airport
- Staniel Cay airstrip is an official port of entry for the cays
- Exuma Cays Land and Sea Park: c. 130,000 protected acres, established 1958
Eleuthera and Harbour Island: low-key and long-established
Eleuthera is a long, thin island known for pink-sand beaches and quiet settlements, while Harbour Island just offshore is famous for its colourful New England-style architecture, as the tourism office describes it. The pace is slower than Nassau and the housing stock runs from village cottages to significant beachfront estates.
Harbour Island in particular has a long history with second-home owners, which supports local trades and property management but also means the best addresses are tightly held.
- Pink-sand beaches and historic settlements rather than resort towers
- Harbour Island: compact, golf-cart scale, strong second-home tradition
- Reached via Eleuthera's airstrips plus a short water taxi for Harbour Island
The Abacos: the sailing capital
The Abacos in the northern Bahamas are the country's boating heartland — the tourism office highlights sailing, fishing and quaint colonial island towns such as those on the barrier cays. Marsh Harbour is the commercial centre and one of the larger towns outside Nassau and Freeport.
Buyers should be aware that Abaco bore the brunt of Hurricane Dorian in 2019 and rebuilding has shaped the market since. That makes on-the-ground due diligence — construction standard, insurance cost and availability, state of local utilities — more important here than anywhere else in the country.
- Best suited to boat owners: marinas, protected sea, short hops between cays
- Marsh Harbour is the main service town
- Check build quality, insurance and utilities carefully post-Dorian
Practicalities that apply wherever you buy
The legal framework does not change between islands. Non-Bahamian buyers register an owner-occupied home (or obtain a permit for larger or income-producing purchases) under the International Persons Landholding Act, and pay VAT at a flat 10 per cent on the conveyance.
Annual costs differ by what you buy. The Department of Inland Revenue exempts the first $300,000 of an owner-occupied home from real property tax, then charges 0.625 per cent up to $500,000 and 1 per cent above that — but foreign-owned vacant land is taxed at 2 per cent of value beyond a token first band, which matters if you are land-banking a plot on an Out Island. Habio's Bahamas area guides and listings can help you compare islands side by side before you commit to viewing trips.
- Same national rules: IPLA registration or permit, 10% VAT for foreign buyers
- Owner-occupied homes: first $300,000 exempt from annual property tax
- Foreign-owned vacant land: 2% annual tax on value above the first $7,000
- On remote cays, budget for boats, generators, water and property management
Frequently asked questions
Where do most international buyers purchase in the Bahamas?
New Providence (Nassau and Paradise Island) has the deepest market thanks to the international airport, services and resale liquidity, while the Exumas, Eleuthera/Harbour Island and the Abacos attract buyers wanting space, water access and privacy.
Are the buying rules different on the Out Islands?
No. The International Persons Landholding Act applies nationwide: an owner-occupied home is registered after purchase, larger or income-producing acquisitions need a prior permit, and foreign buyers pay a flat 10% VAT on the conveyance wherever the property is.
How do you reach the Exumas?
Exuma International Airport (GGT) sits a few miles from George Town on Great Exuma, and Staniel Cay in the Exuma Cays has an airstrip that is an official port of entry. Beyond those hubs, access is by boat.
Do I pay annual property tax on land I buy but do not build on?
If you are not Bahamian, yes: the Department of Inland Revenue charges $100 on the first $7,000 of value and 2% on the remainder for foreign-owned vacant land. Bahamians pay no real property tax on vacant land.
Is Abaco a good place to buy after Hurricane Dorian?
The Abacos remain the Bahamas' sailing centre and rebuilding has continued since the 2019 hurricane, but inspect construction standards, confirm utility connections and get insurance quotes before committing.
Sources
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.