In the Bahamas, the demand for residential property fell dramatically following the global financial crisis. According to local agents, the decline was as high as 60 percent in some areas. After the hurricanes of last year, however, the housing market has steadily rebounded and prices are currently stable. But before purchasing Bahamas property, you should know some facts first.
First of all, it is important to hire a local attorney to ensure the legality of the property title. The attorney will act on behalf of the buyer and give an opinion as to the title of the property. Essentially, the opinion acts like title insurance and makes the attorney responsible for any problems with the title. You should always contact an attorney prior to buying Bahamas property to avoid any unpleasant surprises down the road.
If you’re looking for the most prestigious property, Bahamas real estate offers prime properties. Most of these properties are located on the islands, cays, and islets. Some of the island properties are located near lively hubs where you can enjoy world-class amenities, while others are in secluded areas or virgin islands. harbour island real estate In addition, if you’re looking for privacy and tranquility, Bahamas real estate can be located on private islands that are perfect for superyachts and private planes.
Another great option for buying Bahamas property is the Harbour Island real estate market. This area features some of the most luxurious properties in the country, and attracts buyers from all over the world. With its hospitable locals, beautiful scenery, and laid-back lifestyle, this destination is an attractive option for anyone looking for a relaxing getaway.
Taxes are another factor to consider when buying Bahamas property. Although there are no sales taxes or income taxes, Bahamas real estate transactions are subject to Value Added Tax (VAT) of 7.5 percent. This tax is shared by the buyer and seller. However, the first $250,000 of owner-occupied residential property is tax-exempt. Between that amount and $500,000, the tax rate is approximately 3/4 of one percent of the market value. After this amount, the tax rate jumps up to 1%.
Real estate tax rates vary based on the type of property and its owner. The rate is based on the value of the property, which includes the land and improvements. However, exemptions are not automatic; you must fill out an Application for Tax Concession. There are several criteria that must be met before you can enjoy a tax-exempt Bahamas property.
If you’re thinking of investing in a luxury villa in the Bahamas, you might want to consider a Waterfront Villa. This luxury property features panoramic views of the Harbour. It has an open kitchen, swimming pool, and a recreational area. In addition, the property includes a full-time Estate Manager and maintenance staff.