What It Costs to Buy a Home in the Bahamas in 2026

Budgeting for a Bahamas purchase is mercifully simple compared with much of Europe: one headline transfer tax, agent commission, legal fees and a modest annual property tax. For a foreign buyer the single biggest line is VAT on the conveyance at a flat 10 per cent of the property's value.

Below are the current figures as of August 2026, drawn from the Value Added Tax Act, the Department of Inland Revenue and the Department of Immigration — with a warning that Bahamian budgets each July routinely adjust rates and thresholds.

VAT on the purchase: the big one

Since a 2023 amendment to the Value Added Tax Act, every conveyance of real property to a foreign person attracts VAT at a flat 10 per cent, whatever the price. Bahamian individuals instead pay a graduated scale under the Act's Third Schedule: 2.5% up to $100,000, then 4% to $300,000, 6% to $500,000, 8% to $700,000, 9% to $1 million and 10% above $1 million.

Two further points help planning. Custom in the Bahamian market is for buyer and seller to split the VAT 50/50 unless the contract says otherwise. And stamp duty is no longer part of the picture: the Stamp Act 2024, in force from 1 July 2024, exempts deeds of conveyance of realty because transfers are taxed under VAT instead.

Foreign buyers: flat 10% VAT on the conveyance
Bahamian buyers: graduated 2.5%–10% depending on value
VAT customarily split equally between buyer and seller
No separate stamp duty on property transfers since July 2024

Fees on top: agents, attorneys, permits

Law firm Lennox Paton's buyer guide puts customary real estate commissions at 6 per cent for improved property and 10 per cent for undeveloped land, usually paid by the seller but priced into the deal. Attorneys typically charge a percentage of the purchase price for investigating title and handling the conveyance — agree the fee in writing at the outset.

Foreign buyers also pay $1,000 under the International Persons Landholding Act, either for the certificate of registration after closing (owner-occupied homes) or for a prior permit (larger tracts, rental or commercial purchases). If you borrow, VAT of 1 per cent applies to the mortgage amount.

Agent commission: customarily 6% improved / 10% undeveloped, per Lennox Paton
IPLA certificate of registration or permit: $1,000
1% VAT on the amount secured by a mortgage

Annual real property tax

The Department of Inland Revenue's published bands are gentle by international standards. For owner-occupied homes the first $300,000 of value is exempt, the next $200,000 is taxed at 0.625 per cent, and value above $500,000 at 1 per cent. Higgs & Johnson notes the annual bill on an owner-occupied home is capped — the ceiling was doubled to $120,000 in the 2022/23 budget.

Other categories differ: residential property of up to four units pays $300 on the first $75,000 of value and 0.625 per cent above that, while foreign-owned vacant land pays $100 on the first $7,000 and 2 per cent on the rest. Bahamians pay no property tax on vacant land at all.

Owner-occupied: first $300,000 exempt; 0.625% to $500,000; 1% above
Annual owner-occupied bill capped at $120,000 since the 2022/23 budget
Foreign-owned vacant land: 2% of value above the first $7,000

Permanent residency by investment: the $1 million threshold

The Department of Immigration currently states that economic permanent residency requires a minimum investment of $1.0 million, made through real estate or through Zero Coupon Bonds issued by the Central Bank of The Bahamas, with the asset held for at least ten years. The application carries a $200 non-refundable processing fee and a substantial documentation list, from police certificates to authenticated birth certificates.

Owners below that threshold are not shut out: the Home Owner's Identification Card, a residence permit issued under the International Persons Landholding Act for owners of a habitable Bahamian residence, eases entry to the islands and also costs $200 to process.

Economic permanent residence: minimum $1.0m in real estate or Central Bank zero-coupon bonds
Qualifying asset must be held for at least 10 years
$200 processing fee; extensive supporting documents required
Home Owner's Identification Card is the lighter-touch option for entry

A worked example — and a health warning

Take a $1.5 million house bought by a non-Bahamian couple: VAT of $150,000 (customarily $75,000 each side if split), a $1,000 IPLA registration, attorney's fees as agreed, and — if the home qualifies as owner-occupied — annual property tax of $11,250 under the current bands ($0 on the first $300,000, $1,250 on the next $200,000, $10,000 on the remaining $1 million).

Every figure here is a snapshot. The 2026/27 budget round again amended the VAT Act (including higher first-home relief for Bahamian citizens), so check the Department of Inland Revenue and the Department of Immigration for current numbers before you commit. Habio's Bahamas buyer guides and listings are kept country-specific if you want to see how these costs play out against real asking prices.

Model 10% VAT plus roughly 1–2% of professional and permit costs
Rates and thresholds move at budget time each July — verify before exchange

Frequently asked questions

How much tax does a foreigner pay when buying property in the Bahamas?

VAT at a flat 10% of the property's value applies to conveyances to non-Bahamians under the Value Added Tax Act, as amended in 2023. By custom it is split 50/50 with the seller unless the contract provides otherwise.

Is there stamp duty when buying a house in the Bahamas?

No. The Stamp Act 2024, in force since 1 July 2024, exempts deeds of conveyance of realty from stamp duty; property transfers are taxed under the VAT regime instead.

What is the annual property tax on a $1 million owner-occupied home in the Bahamas?

Using the Department of Inland Revenue's bands: the first $300,000 is exempt, the next $200,000 is taxed at 0.625% ($1,250) and the remaining $500,000 at 1% ($5,000) — about $6,250 a year if the home qualifies as owner-occupied.

How much do I need to invest for Bahamas permanent residency?

The Department of Immigration states a minimum investment of $1.0 million, via real estate or Central Bank Zero Coupon Bonds, held for at least ten years, plus a $200 processing fee. Requirements can change, so check the Department's current guidance.

Does the Bahamas have income or capital gains tax?

No personal income tax, capital gains tax or inheritance tax is levied in the Bahamas. Government revenue relies instead on VAT, import duties and real property tax — one reason transaction taxes on property are comparatively prominent.

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.

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