Renting or Buying Property in The Bahamas as a Foreigner

The Bahamas is a premier destination for expatriates, retirees, and investors seeking luxury living, beautiful landscapes, and tax benefits. Whether you’re looking to rent or buy property, understanding the local regulations and market conditions is essential. This guide provides a comprehensive overview of the real estate process in The Bahamas.

Renting Property in The Bahamas

Finding a Rental Property

1. Online Listings – Websites like Bahamas Realty, Island Living Real Estate, and social media groups provide rental options.
2. Real Estate Agents – Licensed agents can assist in finding the best rental properties.
3. Local Networking – Word-of-mouth recommendations can be valuable, especially in smaller communities.

Rental Agreements

1. Lease Duration – Standard lease terms range from six months to one year, with renewal options.
2. Security Deposit – Typically equivalent to one or two months’ rent.
3. Utilities & Maintenance – Confirm whether rent includes utilities like water, electricity, and internet.
4. Written Contract – Ensure the agreement outlines rental terms, responsibilities, and payment schedules.

Rental Costs

• Nassau: $1,500 – $5,000 USD per month
• Paradise Island: $2,000 – $10,000 USD per month
• Exumas & Out Islands: $1,200 – $4,000 USD per month

Buying Property in The Bahamas

Can Foreigners Own Property?

Yes! The Bahamas has a liberal property ownership policy, allowing foreigners to buy land, homes, and condos.

Steps to Buying Property

1. Choose a Location and Budget

• Popular areas: Nassau, Paradise Island, Grand Bahama, and Eleuthera.
• Consider property type: beachfront villas, condos, or gated communities.

2. Hire a Real Estate Agent & Attorney

• A licensed real estate agent helps with property selection and negotiations.
• An attorney ensures due diligence and legal compliance.

3. Conduct Due Diligence

• Verify title ownership with the Bahamas Investment Authority (BIA).
• Ensure the property is free of liens or disputes.

4. Sign a Purchase Agreement

• Typically, a 10% deposit is required upon signing.

5. Government Approval & Property Registration

• Purchases under 2 acres generally require no government approval.
• Larger properties may need approval from the Foreign Investment Board.

6. Closing the Sale

• Legal fees and taxes must be paid before title transfer is completed.

Costs of Buying Property

• Stamp Duty: 2.5% to 10% (varies based on property value)
• Legal Fees: 1.5% – 2.5% of property value
• Real Estate Commission: 6% (paid by the seller)
• Property Taxes: Generally low, with exemptions for certain properties

Key Considerations

Residency & Property Ownership

• Buying property does not automatically grant residency.
• A real estate purchase of $750,000+ USD qualifies for accelerated permanent residency.

Legal Restrictions

• Government approval may be required for large land purchases.
• Property insurance is recommended due to hurricane risks.

Practical Factors

• Consider access to utilities, local services, and hurricane resilience.
• Hiring a local property manager is advisable for absentee owners.

Frequently Asked Questions (FAQ)

1. Can foreigners get a mortgage in The Bahamas?

Yes, some Bahamian banks offer mortgages to foreigners, but higher down payments and interest rates apply.

2. Is it better to rent or buy in The Bahamas?

Renting offers flexibility, while buying provides investment benefits and potential residency options.

3. What is the average mortgage interest rate in The Bahamas?

Rates typically range from 5% to 8%, depending on the lender and borrower profile.

4. Can foreigners inherit property in The Bahamas?

Yes, foreign ownership is transferrable through inheritance laws.

5. Can I start the property purchase process while living abroad?

Yes, online property searches, virtual tours, and real estate agents can facilitate overseas transactions.

Conclusion

The Bahamas offers an attractive real estate market for foreigners with a straightforward buying process. Whether renting or investing in property, working with professionals and conducting thorough research is essential. With its stunning landscapes and tax-friendly environment, The Bahamas remains a top choice for expatriates and investors alike.

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

During these sessions, you can discuss every small detail related to the moving process. It’s like having a trusted friend everywhere you go. Whether you want to plan a short trip, need help finding an apartment, or you want some advice on moving to a particular city, they can help. This is a great way to meet someone with a similar background to help you achieve any of your goals.