Real estate in the Bahamas is very affordable, and if you are looking for a beachfront property, you should consider buying a property in the Bahamas. Many celebrities, including Nicolas Cage, Maria Carey, and Sean Connery, own real estate in the Bahamas. Even Tiger Woods and Michael Jordan own property in The Bahamas.
The Bahamas is a large archipelago of around 700 islands. Its capital city is Nassau, and its famous islands include Paradise Island and Ocean Club Estate. The island nation has a low tax rate and a diverse population, so it attracts more visitors than other Caribbean nations. Some islands are touristy meccas, while others are more serene and secluded.
Real estate in The Bahamas is easy to buy, thanks to a low tax rate and a developed real estate market. The process is transparent and secure. When buying a property in The Bahamas, it is important to ensure that the title is legitimate and that the seller has all the necessary documents on file. Missing abstracts and title deeds can reduce the marketability of a property.
As the country’s economy grows and tourism numbers increase, the Bahamas is becoming increasingly attractive for wealthy investors. The country offers high returns on investment, and real estate prices have recovered from the decline in prices. There are many benefits to buying a property in The Bahamas, including a stable economy, low crime rate, flexible immigration policy, and inimitable natural beauty.
While there is no income tax, inheritance tax, or capital gains tax in The Bahamas, it does levy a Value Added Tax (VAT) on every transaction. This tax is shared between the seller and buyer. For owner-occupied residential properties, the first $250,000 is tax-free. For those between $250,000 and $500,000, the tax rate is 3/4 of one percent of the market value. Once the market value reaches $7,000, the tax rate goes up to 1.5% per annum.
After the global financial crisis hit the Bahamas, demand for residential properties began to drop. According to the Engel & Volkers 2019 Real Estate Market Report, sales of residential properties fell by 20%. This is expected to worsen in 2020. The government has closed the country’s international borders to prevent the spread of the coronavirus, and many local agents expect this trend to continue for the remainder of 2020.
The Bahamas is also known for its excellent healthcare system. ocean club estates Local hospitals and clinics are well-equipped and staffed with highly trained personnel. Education is also very accessible, as English is the primary language and there are a number of international schools in the country. Many expats and real estate investors find the laid-back lifestyle in the Bahamas attractive.
Whether you plan to buy Bahamas Property or rent it out, you should be aware of the laws regarding rent control. While rent is usually freely agreed in holiday rentals, there are some restrictions. Certain types of property are subject to a Rent Control Act, which applies to buildings worth less than B$25,000. But the law is relatively lenient in practice. Landlords must provide proper notice before repossessing the property if the rent is not paid.