When it comes to buying or selling real estate, the Bahamas offers many opportunities. Many celebrities own real estate here, including Maria Carey, Nicolas Cage, and Sean Connery. Michael Jordan and Tiger Woods also own real estate there. However, if you’re buying property for yourself, here are some tips to make the process as simple as possible. Read on to learn more about the opportunities available in The Bahamas. And remember, the process starts with a little research.
In addition to local residents, foreigners can also invest in Bahamas real estate. Foreign buyers are encouraged to invest in Bahamian real estate, which has a number of benefits. While most bahamas real estate foreign buyers come from the United States, Canada, and the rest of Europe, a growing number of Bahamians are buying properties in the middle market. Depending on travel restrictions, buyers from the United States come in waves. Texas-based buyers are the largest group of U.S. buyers, but Californians are among the exceptions.
In the Bahamas, formal powers of attorney are rarely used in real estate transactions. Most real estate documents are executed directly between the parties, but some may be executed by a Bahamian attorney without formality. Although the Bahamas Powers of Attorney Act 1992 made provision for Bahamian attorneys to execute real estate documents, it is rare for an attorney to act on behalf of the seller or buyer. When a buyer is absent, the property is declared by the attorney.
When buying real estate in the Bahamas, it is essential to understand the legal framework surrounding the transaction. Unlike most countries, the Bahamas government has a low real estate tax. This tax is charged on a proportion of the property’s market value. However, the government also encourages developers to develop undeveloped property on the island. This has led to a surge in sales. It is also important to keep in mind that property taxes are expected to rise this year to 15.2%.
In addition to the low taxes, a foreign investor can invest in Bahamas real estate without obtaining prior government approval. Non-Bahamians can purchase residential properties that are up to 5 acres in size. Those who wish to develop more expansive projects, however, need to apply for a permit from the Bahamas Investment Authority. They must submit a proposal for the project, as well as financial projections and employment needs. In the Bahamas, it is possible to find luxury real estate in the country, but it is essential to do your research.
Although prices in The Bahamas are relatively low, they are still expensive, with realtors’ and lawyers’ fees rising by up to 30 percent. The Bahamas’ mortgage market has stabilized since the passage of the International Persons Landholding Act, which replaced the Immovable Property Act in 1981. For foreign investors, buying real estate in The Bahamas can be an excellent investment if you have the cash to spend. It is important to note that you will need a permit if you want to buy undeveloped land that’s over 5 acres in size. After the transaction, you’ll also need to register your real estate with the Investment Board and the Central Bank.