Property Fees & Taxes

Real Property Tax

All property in the Bahamas is governed by the Real Property Tax Act 1969.  Real Property tax is an annual tax charged on the Market value of property and applies to Bahamians and non-Bahamians owning real property not exempt from taxation.

"Real Property" includes all land, buildings, machinery, plant and equipment attached to land.

"Bahamian" is defined as a citizen of the Bahamas or a company registered under The Companies Act in which at least 60% of the shares are beneficially owned by Bahamians.

Owners of real property are required to file a formal declaration of all Real Property annually, for placement on the Tax Roll.

Procedures for Assessments

  1. Written letter from owner or their duly authorized agent(s) requesting assessment.
  2. History of Title (showing all owners)
  3. Copy of Conveyance(s)
  4. Copy of occupancy certificate (Bahamas Electricity Corporation letter of initial supply.)
  5. Completed Declaration Form  (including present Market Value).
  6. Survey Plan (with coordinates by registered surveyor & signed signature Surveyor General).
  7. Completed affirmation form for owner occupied properties
  8. Identity of Bahamian Status (first 4 pages of passport.)
  9. Mortgage if any (bank, insurance, or mortgage agency).

Notices of Assessments - notices for 2008 shall be issued on or before October 15th, 2007 after advertisements have appeared in the government gazette and newspapers. Taxes are due and payable before December 31, 2007 following the date of which the the notice of assessment is deemed served. Payment may be made in four quarterly installments if the owner elects and all unpaid accounts shall acrue a surcharge.

Effective January 1st 1994, real property tax rates are:

Owner Occupied Property:

  1. Tax exempt if the owner resides on the property exclusively as a dwelling home.
  2. Tax exempt on the first $250,000.00 of market value.
  3. 1% is assessed on portions above $250K and less than $500K.
  4. 1.5% is assessed on portions above $500K
Unimproved Property other than those exempt under Section 39 of the Real Propety Tax Act:
  1. $30.00 is assessed on that portion of market value less than or equal to $3000.00
  2. 1% is assessed on that portion of market value over $3000.00 and less than $100,000.00
All other property
  1. 1% is assessed on market values less than $500,000.00
  2. 2% is assessed on market values over $3000.00 and less than $500,000.00
Exemptions
  1. All Bahamian owned unimproved property (property without alterations or physical additions or any other works that increases the market value by $5000.00 or more).
  2. Property owned by Bahamians and situated in the Family Islands
  3. Property approved as commercial farm land by the Ministers of Agriculture and Industry and Finance.
  4. Property used for Religious Worship, school buiidings their gardens and playgrounds.
  5. Property owned by foreign governments.
  6. Property owned by foreign nations used for consular services, or consular residences.
  7. Property used for charitable or public service which no profit is derived.

Any person has the right of objection excersiable within thirty days of the date on which the Notice of Assessement was deemed served if there is a grievance about the Notice of Assessment.

Government Stamp Tax

Government stamp tax is a graduated tax calculated on all real property conveyance. This means the tax increases as the consideration on a property increases. In the Bahamas during a purchase this tax is usually shared equally between the buyer and seller, unless otherwise agreed upon.

  • 4% stamp tax on conveyances up to $20,000.00
  • 6% stamp tax on conveyances between $20,001 to $50,000.0
  • 8% stamp tax on conveyances between $50,0001 to $100,000.00
  • 10% stamp tax on conveyances between $100,001 to $250,000.00
  • 10% stamp tax on conveyances over $250,001.00

Real Estate Commission

  • 10% on the sale price on unimproved property
  • 6% on the sale price on improved property
  • 10% on the sale price on commercial Property or Business

Legal & Government Fees

  • Legal fees in Property matters equals 2.5% of the selling price.
  • Stamp Tax fees in Property matters other than above is assessed at 7% of the selling price.
  • Government recording fees costs about $4.50 per page.
  • Application of registration is $25.00
  • Permit Application is $25.00

Schedule of Fees

  1. Property values of $50,000.00 or less. - $50.00
  2. Property values between $50,000.00 but less than $101,000.00 - $75.00
  3. Property values over $101,000 - $100.00
  4. Home owner resident card - $500.00.

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