Buying Property inThe Bahamas |
|
|
Real estate in the Bahamas A guide aimed at overseas property buyers considering buying property in the Bahamas
The Bahamas, a chain of over 700 islands off the coast of Florida, is a prime spot to purchase real estate for a second home or investment property. With no income tax, inheritance tax or sales tax, The Bahamas is an ideal place to buy and the process is reasonable and straightforward. When looking for a place to purchase, there are a few things to be aware of. Foreigners can own residential property that is less than 5 acres, with or without improvements. If you want to purchase commercial property or any land over 5 acres then a permit from the government is necessary and must be obtained before title can be handed over. You can find your ideal location by using a real estate agent or doing it on your own. There is an 8-10% commission paid to the agent, but that is usually paid by the seller. Once you have found your property, make an offer with a written sales contract proposal and earnest money down payment, less than 5% of the offered price. This money can be returned if the contract terms are not met, but if the buyer backs out then it is forfeited. The main work to be done prior to closing is obtaining financing and having a lawyer perform the title search. The lawyer’s work in The Bahamas is very important, and the seller should employ one to perform the title research. The lawyer’s opinion is a guarantee for the title. Although it depends on the exact location within the islands, once the title search is completed the seller will often pay for title insurance to insure against any future problems. Typically these legal fees range from 1.5 to 2.5% and are split by the buyer and seller. Although the seller will use a lawyer to perform the title work, you should hire your own lawyer to review the contract terms and provisions and represent you at closing, particularly if you are not able to be present. The only real tax in The Bahamas is on exchange of property and real estate ownership, so this is an important consideration when purchasing here. The Stamp Tax on Conveyance of Real Property, paid upon a property sale, is graduated so that the greater the cost, the higher the tax. The highest rate is 10% on properties over $250,000. This fee can be paid by the seller or split with the buyer paying some, depending on the final contract terms. There is also a graduated yearly real estate tax. Check on the taxes before you settle on a property so you will know what the real costs will be. All taxes and fees are due at closing and registration of your property, so make sure you know what they amount to and are prepared for them.Useful Bahamas information
The Bahamas - Wikipedia, the free encyclopedia
CIA - The World Factbook -- Bahamas, The
Bahamas Guide - Travel, Vacation, Business, Real Estate and ...
|
|
|||||||||||||||||
