Buying in The Bahamas
WHAT-TO-DO - NASSAU, CABLE BEACH & PARADISE ISLAND - JULY 2005
Buying in The Bahamas
Follow the painless steps
Buying property in The Bahamas is a relatively painless business, providing you get a good real estate agent in your corner. In fact, finding an agent accredited by The Bahamas Real Estate Association (BREA) is the very first step you should take, says John Christie, vice president of H G Christie Ltd.
"Basically, we represent the sellers," says Christie, but he quickly adds that good agents also make it easy for buyers to acquire a home in The Bahamas, whether it's a hideaway winter condo or an island estate.
"Buying here is not much different from anywhere else," says Christie, but there are steps that must be followed. Trying a shortcut can lead to unnecessary delays. For example, the agent will make it clear that the price does or does not include the furniture; whether the price is contingent upon an inspection; and whether financing will be involved in the deal. It's important to get these and other details firmly settled before an offer is made.
Generally, the buyer puts up a deposit of 10 per cent of the selling price when he or she makes an offer. This money goes into the seller's attorney's escrow account.
The agent's commission is set by BREA at six per cent for homes and condos and 10 per cent for vacant land. Then there is a government stamp tax on all conveyances, ranging from two per cent to 10 per cent and "this is usually split equally between the buyer and the seller," says Christie.
Generally, both the buyer and seller are responsible for their own legal fees, which run about 2-1/2 per cent for each side of the deal, however, you can reduce this amount by agreeing to use the same attorney as the seller.
One of the things foreigners should be prepared for, says Christie, is signing a confidential Know Your Customer (KYC) form, which records your name and your sources of income. Passports and references may also be required.
Good agents will be prominent throughout the negotiations, so it's important to find and use an accredited BREA agent. Once you have done that, you can sit back and leave the vexing details up to him or her.
Stamp taxes
A one-time government stamp tax is levied on every real estate transaction. The stamp tax rate on the total purchase price is:
Up to $20,000 2%
$20,000.01 - $50,000 4%
$50,000.01 - $100,000 6%
$100,000.01 -$250,000 8%
Over $250,000 10%
Property tax
Property taxes are due at the end of each year, payable to the Public Treasury. The first $250,000 of market value of owner-occupied property is tax exempt. Between $250,000 and $500,000, the tax is one per cent. Owners of properties valued above $500,000 pay 1-1/2 per cent.
Vacant land owned by non-Bahamians is taxed at $30 for property valued up to $3,000. For property worth between $3,000 and $100,000, the tax is one per cent of the market value, and for property worth more than $100,000 the tax is 1-1/2 per cent.
Commercial properties are taxed at one per cent for the first $500,000 of market value and two per cent on the value above $500,000.
Foreign Investment Board approval is required for foreign buyers if they are buying more than five acres of undeveloped property.
CONTACT INFORMATION
E-Mail: Click here
Internet: https://
Disclaimer:
Information in editorial and listings is subject to change at any time.