Whether you want to retire in paradise or build a second home, the Bahamas offers a unique way to live in paradise. With an hour-long flight from Miami and a favourable tax system, the Bahamas appeals to a wider variety of nationalities than other Caribbean nations. New Providence and Paradise Island are the focus of thriving tourism industries. If you’re thinking of buying Bahamas property for investment purposes, here are some steps to take.
Make sure you’re qualified to purchase property in the Bahamas. Purchasing property requires a substantial down payment and can be difficult without legal representation. The interest rate in the Bahamas is higher than in the US, which means that the money you’ll be investing in a property is likely to increase in value. Many foreign buyers who buy Bahamas property are looking for residency status. Gated communities with amenities and community beach access are the most sought-after.
When buying Bahamas property, you’ll need to find out exactly what type of permits and licenses you need to acquire. Although foreign nationals are permitted to buy property in the Bahamas, there are exceptions to this rule. Property in the Bahamas must be registered under the International Persons Landholding Act. Upon purchase, you will need to register with the Central Bank and Investment Board. This will give you legal rights and protect your investment. However, you’ll need to find out how much land you’ll need to buy.
The Bahamas offers many benefits to wealthy property owners. For example, taxes are shared equally, so you won’t pay any inheritance or capital gains taxes. In addition, there are few laws governing inheritance and gift taxes, so the Bahamas is a good choice for many individuals. Also, the tax environment is favorable for foreign real estate investors. And the transaction costs are low, too. For this reason, it is a good idea to consult an attorney in the Bahamas who specializes in property taxes.
Another advantage of investing in real estate in the Bahamas is the fact that you can obtain residency in the country. The government has laid out specific guidelines for non-Bahamians to establish residency. These include a number of exemptions for non-Bahamians to apply for permanent residency. For example, if you have property worth $1.5 million, you can apply for accelerated consideration. There’s no requirement to occupy the property for six months.
Rental yields on Bahamas property are moderate to good. In Abaco and Grand Bahama, property rents are moderate, while Nassau offers the highest average gross rental yields. Even teeny waterfront condos can fetch yields in excess of eight percent per year. On the other hand, smaller properties have lower yields. Therefore, it is important to understand that rental yields in the Bahamas are highly dependent on the type of property purchased.
To get a clear picture of the property’s title and its ownership history, you should hire a licensed attorney to check the title. Licensed Bahamas real estate attorneys will check the title to make sure there are no encumbrances. harbor island bahamas rentals In addition, a break in the chain of title owners or missing abstracts can decrease the property’s marketability. Moreover, title insurance is optional in the Bahamas. However, it can provide peace of mind to both you and the seller.