In addition to being a beautiful archipelago comprised of hundreds of islands, Bahamas real estate also offers many benefits to investors. The island nation boasts an excellent tax structure, world-class golf, shopping, and bahamas real estate spas. Not to mention some of the most luxurious homes in the Caribbean. So, what are the best ways to buy property in the Bahamas? Let’s find out. Listed below are some tips to help you make the right decision when buying a Bahamas property.
Tax-free zones and a relaxed, resort-style lifestyle make The Bahamas an attractive place for investors and second-home buyers alike. Bahamas real estate prices are 37% higher than their Caribbean neighbours, according to a recent article in Bahamas Guides. The stable economic climate and tax benefits have made it a favorite destination for buyers from the US. Moreover, the real estate market in the country remains stable. This helps attract investors to purchase property in the country.
Non-Bahamians can also buy real estate in the country. The law of The Bahamas requires non-Bahamians to register their property after acquiring it. This is because the property cannot be used as a private residence. However, the property must not be slated for development. In such cases, it may be wise to purchase it in a company. This will provide better protection for the buyer. This option may be especially useful if the buyer is planning a large project.
The Bahamas’ government has introduced various incentives to boost the real estate market. Typically, these incentives encourage Bahamian companies to acquire land or lease it. However, investors are still required to meet certain criteria in order to receive the incentives. In October 2002, the government announced a new ministry of financial services, which announced a series of improvements to the real estate process. The aim of the Bahamas government is to generate consistent growth in the real estate sector.
The Bahamas is also one of the few countries in the Caribbean that does not levy income taxes. Non-Bahamians can apply for residency if they are working on a project to develop the property. For those who are not interested in permanent residency, they can seek a permit from the government. For investors who do not plan to live in The Bahamas, the country’s business-friendly legal framework encourages non-Bahamian investments.
Once an investor is granted permanent residency, the government also increases the threshold for taxation. In 2010, the threshold for permanent residency was increased to US$750,000 for non-Bahamians. This is an incentive to develop property in the country, and a non-Bahamian can apply to the government for an exemption. The government has several other exemptions that may help foreign investors. As long as you meet the requirements, the Bahamas is a great place to invest in real estate.
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