Bahamian Property Law for Foreign Owners: What You Must Know in 2025

Owning property in The Bahamas as a non-Bahamian is straightforward by Caribbean standards — but it carries specific legal obligations that every investor must understand and meet without exception.

The International Persons Landholding Act

Non-Bahamians acquiring residential property must apply for a permit under the International Persons Landholding Act (IPLA). The Act applies to the purchase of property above a certain threshold and requires registration with the Investments Board. Failure to comply can result in forfeiture of the property.

Real Property Tax (RPT)

All property owners in The Bahamas are subject to Real Property Tax. The rate varies depending on the property classification and value:

• Owner-occupied residential properties: First $300,000 exempt; above this threshold, a graduated rate applies
• Non-owner-occupied residential: Rate applied to assessed value
• Commercial properties: Different rate schedule applies
• Annual payment required — late payment attracts penalties and interest

Stamp Duty on Property Transfers

Stamp Duty is payable on the transfer of Bahamian real property. The current rate is 2.5% of the purchase price for properties under $100,000 BSD, and 10% for properties above this threshold — shared between buyer and seller unless otherwise negotiated.

VAT Implications for Rental Income

Rental income from properties in The Bahamas may be subject to Value Added Tax (VAT) where the property is used for short-term rentals. Registration thresholds and reporting requirements should be confirmed with a licensed Bahamian accountant annually.

This article is for informational purposes. Property owners should seek qualified legal and accounting advice specific to their situation. TCPS assists clients in meeting their compliance obligations as a routine function of management.