Buying Property in The Bahamas: What Every Buyer Needs to Know in 2026

The Bahamas remains one of the most sought-after property markets in the world, offering zero income tax, zero capital gains tax, stunning geography, and a stable legal environment that welcomes foreign ownership. But buying property here involves a legal framework that is unlike almost any other jurisdiction, and recent legislative changes in 2025 have made the process more complex than ever.

Whether you are purchasing a beachfront residence on New Providence, a commercial plot on Grand Bahama, or a second home in the Exumas, this guide walks you through everything you need to know before you sign.

Can Foreigners Buy Property in The Bahamas?

Yes, and the government actively encourages it. Foreign nationals can purchase and hold freehold property in The Bahamas with few restrictions. However, the rules differ depending on the type, size, and intended use of the property.

For residential purchases such as a home or condominium intended as a family residence, foreign buyers are generally not required to obtain a permit before closing. Instead, the transaction is registered with the Bahamas Investment Authority after completion. However, for undeveloped land exceeding two acres, or property intended for commercial or rental use, a government permit must be obtained before closing.

For major investment or development projects, applications are submitted through the Bahamas Investment Authority, which coordinates with the National Economic Council for approval of significant foreign investment proposals.

The key point: the rules are fact-specific and change based on your circumstances. Engaging a qualified real estate lawyer in The Bahamas before you proceed is not optional. It is the foundation of a successful transaction.

What Changed in July 2025 – Critical Legislative Updates

Two significant pieces of legislation came into force on 1 July 2025 that every buyer, seller, lender, and real estate agent must now comply with.

Conveyancing and Law of Property (Amendment) Act 2025

Parties to real estate transactions, as well as their attorneys and real estate agents, are now required to obtain a VAT invoice from the Department of Inland Revenue before executing the conveyance or any other instrument to complete the transaction, including mortgage deeds and lease agreements.

The VAT invoice must be paid in full within 180 calendar days of the execution of the conveyance. Every conveyance of real property executed by deed must also be submitted for recording within 180 calendar days from the date of execution.

Critically, every person, including financial institutions, lenders, and vendors, must verify that a VAT invoice was issued before disbursing funds or completing any loan or mortgage transaction. Anyone who breaches this provision commits an offence and is liable to a penalty equal to the amount of unpaid VAT.

Property owners are also required to file a declaration with the Department of Inland Revenue within 30 days of executing the conveyance when conveying a beneficial interest in real property, whether directly or indirectly. The transferor and any real estate agents involved are jointly and severally liable for a penalty of 3% of the consideration if the declaration is not filed on time.

International Persons Landholding Act 2025 Amendment

The International Persons Landholding Act was also amended on 1 July 2025, introducing new permit expiry and extension rules.

A permit will now expire if the holder fails, within 180 days of the grant, to pay the applicable VAT on the conveyance and submit a notice to the Chief Valuation Officer indicating the change in ownership.

Where the holder has not acquired the land within 180 days, the permit is automatically extended for a further 180 days, provided the holder applies for an extension and pays the required fee no less than 30 days before expiry.

These changes have material implications for transaction timelines. Buyers and their legal teams need to plan around these deadlines from day one.

Understanding the Conveyancing Process in The Bahamas

The Bahamas operates an unregistered land system with no central land registry. Good and marketable title to land is determined by searches conducted against the names of predecessors in title and the seller across the Registry of Records, the Supreme Court Registry, the Companies Registry, and the Probate Registry. Certain searches must still be conducted manually, which can impact the time it takes to conclude a transaction.

Bahamian law requires a licensed local attorney to handle the conveyancing, the legal transfer of title from seller to buyer. Your attorney conducts the title search, prepares the sale and purchase agreement, manages VAT payment, and registers ownership with the Registrar General.

The full process typically involves the following steps:

• Agree heads of terms and instruct a Bahamian attorney
• Title search across all relevant registries
• Due diligence, including survey, property inspection, and HOA review where applicable
• BIA registration or permit application depending on the property type and buyer status
• Obtain a VAT invoice from the Department of Inland Revenue before execution
• Execute the conveyance. Original wet signatures are required; electronic signatures are not permitted
• Pay VAT within 180 days of execution
• Register the deed in the Registry of Records within 180 days
• File the required declaration with the Department of Inland Revenue within 30 days

VAT and Costs – What to Budget

VAT on a transaction is calculated on either the consideration paid or the fair market value, whichever is greater.

For Bahamian buyers, VAT is charged on a sliding scale from 2.5% for transactions under BSD$100,000 up to 10% for transactions over BSD$1 million.

For foreign buyers, all transactions are charged at a flat 10%.

It is customary for the buyer and seller to split the VAT equally, though this is a commercial decision rather than a legal requirement.

Beyond VAT, buyers should also budget for:

• Legal fees
• BIA application fees where required
• Recording fees
• Title search costs across multiple registries

Residency Through Property Investment

Foreign nationals who purchase property in The Bahamas qualify for a Home Owners Resident Card, granting annual renewable residency.

For Economic Permanent Residency (EPR), the minimum qualifying investment was increased to USD $1,000,000 on 1 January 2025.

Buyers investing USD $1,500,000 or more qualify for accelerated consideration, typically processed within approximately three weeks.

EPR holders must maintain ownership for at least 10 years and spend a minimum of 90 cumulative days per year in The Bahamas.

Common Mistakes to Avoid

Based on the complexity of Bahamian conveyancing law, these are the most frequent issues that arise when buyers proceed without proper legal guidance:

• Assuming a permit is not required without confirming with a lawyer
• Missing the new 180-day VAT payment and registration deadlines introduced in July 2025
• Failing to file the post-execution beneficial interest declaration within 30 days
• Not budgeting for VAT correctly, particularly as a foreign buyer at a flat 10% rate
• Proceeding without a full title search across all four relevant registries
• Using electronic signatures on conveyancing documents, which are not legally valid in The Bahamas

Speak to a Real Estate Lawyer in The Bahamas

Buying property in The Bahamas is a significant financial decision, and the 2025 legislative changes have added new obligations that make specialist legal guidance more important than ever.

At ParrisWhittaker, our real estate lawyers in The Bahamas have guided clients through hundreds of successful conveyances across New Providence, Grand Bahama, and the Out Islands.

From detailed title searches and encumbrance resolution to permit applications, VAT compliance, and Exchange Control registration, we handle every aspect of your transaction with precision.

Contact ParrisWhittaker today to discuss your property purchase.