Nassau, New Providence, Bahamas - Property Tax Guide 2026
Bahamas Property Taxes
Complete 2026 Guide
No capital gains tax. No inheritance tax. No income tax on rental proceeds. A 10% conveyance VAT at purchase - customarily shared 50/50 between buyer and seller - and a tiered annual real property tax that exempts the first $300,000 of an owner-occupied home. Here is every tax and cost you will pay when buying a Nassau condo - explained before the first offer.
Get Your Personal Tax Breakdown
Tell Glenn your target property and budget. He will send a full line-item cost breakdown covering every tax and fee before any offer is made.
Glenn Ferguson - Licensed Bahamas Real Estate Agent
+1-242-395-8495 - Nassau, New Providence, Bahamas
Bahamas property tax at a glance
What Taxes Do You Actually Pay on a Nassau Condo?
The Bahamas tax structure for foreign property buyers has three layers: the one-time acquisition costs at closing, the annual holding costs, and the taxes that do not apply. All three matter to the investment decision.
Capital Gains Tax
No tax on appreciation when you sell. If a $1M Nassau condo doubles in value, the Bahamas government takes nothing at sale. This applies to Bahamian citizens and foreign owners alike.
Inheritance Tax
No estate or succession tax on Bahamas property at death. Assets transfer to beneficiaries without any Bahamian government levy. No annual wealth tax applies either.
Income Tax on Rental
No Bahamian income tax on rental proceeds earned by non-resident owners. Rental income is not declared to the Bahamas government. The 10% VAT on nightly rates applies separately to short-term lets.
Conveyance VAT
The one-time transaction tax at purchase. Foreign buyers: 10% of price, customarily split 50/50 with the seller, so the buyer's typical share is about 5% - negotiable. Bahamian citizens pay graduated 2.5% to 10%.
Real Property Tax
Annual tax on assessed value. Owner-occupied: first $300K exempt, then 0.625% to 1%, capped at $150,000. Non-owner-occupied: 0.75% to 1.5%, no general cap.
Short-Term Rental VAT
Applies to nightly rental rates where short-term letting is permitted by the building's HOA. Must be registered and remitted to the Bahamas government. Not an income tax.
The biggest cost most buyers miss
The 10% Conveyance VAT - What It Means in Practice
The conveyance VAT is the single largest cost in any Bahamas condo purchase and the one most frequently misunderstood by first-time buyers - especially who actually pays it.
The Bahamas charges VAT on the conveyance of real estate, the tax that replaced the old stamp duty. For foreign buyers the rate is a flat 10% of the purchase price, with no value brackets - a $375,000 Palm Cay unit is assessed $37,500 and a $2.65M Aqualina Cable Beach residence $265,000. Bahamian citizens instead pay graduated rates from 2.5% to 10%, with first-time-buyer relief. The rate itself is the same regardless of property type or whether the purchase is for personal use or investment.
What varies is who bears it. By long-standing market convention the 10% conveyance VAT is shared equally between buyer and seller in a normal "gross" sale, so the buyer's typical share is about 5% of the price. The split is negotiable and is set out in the Agreement for Sale - in a "net to vendor" sale the buyer agrees to pay the entire 10%. Treating the full 10% as an automatic buyer cost is the most common budgeting error Glenn sees, and it roughly doubles the figure a buyer needs to plan for.
The conveyance VAT is remitted by your Bahamian attorney to the government at closing, and a VAT invoice is now required before the deed can be executed. It cannot be deferred or avoided through an ownership structure. The 50/50 split is the market default, not a rule - your share is a negotiating point, and Glenn models both the standard split and a net-to-vendor scenario, with any VAT contribution terms, before any offer is submitted.
"Every buyer I work with gets the conveyance VAT figure before they see the first property. On a $2.65M Aqualina purchase the transaction VAT is $265,000 - customarily split 50/50, so plan for roughly $132,500 as your share, or the full amount in a net-to-vendor deal. That number needs to be in front of the buyer before they fall in love with the view, not on the closing statement six weeks later."Glenn Ferguson - Licensed Bahamas Real Estate Agent, Nassau, New Providence, Bahamas
All figures are estimates and must be confirmed by a licensed Bahamas attorney before any offer. Legal fees at 2.5% to 3.5% of purchase price plus 10% VAT on those fees. Conveyance VAT customarily split 50/50; in a net-to-vendor sale the buyer pays the full 10% (about $100,000 on a $1M purchase). RPT per the Real Property Tax Act, as amended.
Annual holding costs
Bahamas Real Property Tax - 2026 Rates by Classification
Annual real property tax in the Bahamas is tiered by classification under the Real Property Tax Act, as amended. Owner-occupied homes are taxed lightly and capped; non-owner-occupied property is taxed at higher rates with no general cap.
| Property category | Assessed value band | Annual rate | Annual cap |
|---|---|---|---|
| Owner-occupied primary residence | First $300,000 | Exempt | $150,000 max |
| Owner-occupied (continued) | $300,001 to $500,000 | 0.625% | |
| Owner-occupied (continued) | Above $500,000 | 1% | |
| Non-owner-occupied (investment / rental / second home) | First $500,000 | 0.75% | No general cap |
| Non-owner-occupied (continued) | $500,001 to $2,000,000 | 1% | |
| Non-owner-occupied (continued) | Above $2,000,000 | 1.5% |
Rates per the Real Property Tax Act, as amended. Current as of June 2026. Subject to future legislative change. Glenn Ferguson verifies current rates and assessments with the Department of Inland Revenue before every purchase. Condos in an approved hotel rental programme are taxed under the separate condo-hotel tax instead - estimate it with the property tax calculator.
Owner-occupied homes carry the $150,000 annual cap; non-owner-occupied (investment, rental, or second-home) property has no general cap. A $2.65M Aqualina Cable Beach unit held as a non-owner-occupied investment, assessed at purchase price, carries about $28,500 a year - 0.75% on the first $500,000 ($3,750), 1% on the next $1.5M ($15,000), and 1.5% on the $650,000 above $2M ($9,750). A $1M condo runs about $8,750, a $2M unit about $18,750, and a $5M penthouse about $63,750. Condos enrolled in an approved hotel rental programme are taxed instead under the condo-hotel tax - a flat 0.46875% of assessed value, offset by the VAT collected on approved rentals.
The owner-occupied classification requires the property to be your primary or seasonal residence, occupied for six months or more per year, supported by a sworn declaration and documentation filed with the Department of Inland Revenue. Once classified, the first $300,000 of assessed value is fully exempt, the next $200,000 is taxed at 0.625%, and value above $500,000 at 1%, with total liability capped at $150,000 a year - meaningfully lighter than the non-owner-occupied schedule.
Property tax assessments in the Bahamas are conducted by the Department of Inland Revenue and are based on the assessed value of the property - not necessarily identical to the purchase price or market value, and the DIR may appraise and retroactively assess. Glenn can advise on how assessment values typically compare to transaction prices for specific developments before an offer is made.
Aqualina Cable Beach $2.65M
Nassau Condo $1M
Owner-Occupied $900K
Complete purchase cost breakdown
Full Closing Costs When Buying a Nassau Condo
Beyond your share of the conveyance VAT, two further costs apply at closing. Glenn provides a personalised breakdown for every buyer before any offer is made.
Legal fees. Both buyer and seller retain independent legal counsel in all Bahamas property transactions - this is standard practice, not optional. Your Bahamian attorney conducts the title search, reviews HOA and building documents, prepares and executes the conveyance agreement, remits the government VAT, and registers the deed at the Bahamas Registry of Records. Legal fees run 2.5% to 3.5% of the purchase price, with a further 10% VAT applied to the legal fee itself. On a $1M purchase at 3%, legal fees are $30,000 plus $3,000 VAT - totalling $33,000. Each side pays its own legal fees from its own funds, separate from the conveyance VAT.
Title search and disbursements. The attorney's direct costs for conducting the title search, property searches at the Registry of Records, government filing fees, and other out-of-pocket disbursements typically add $2,000 to $4,000 to the closing costs depending on the complexity of the title history.
Seller pays real estate commission. In all Bahamas property transactions, the real estate agent's commission is paid by the seller - not the buyer. Buyer representation through Glenn Ferguson costs nothing extra. The commission is typically factored into the asking price and is not an additional cost to the buyer at closing.
No mortgage stamp duty surprise. If the purchase is financed through a Bahamian or international mortgage, there may be additional duty or VAT on the mortgage instrument depending on the lending structure. Cash purchases avoid this entirely. Glenn advises on the specific implications of financing a Nassau condo purchase before an offer is structured.
Estimates for planning purposes. Buyer share assumes the customary 50/50 conveyance VAT split; in a net-to-vendor sale the buyer pays the full $265,000. Confirm with a licensed Bahamas attorney. RPT figures assume assessed value equals purchase price - actual assessments may differ. Glenn Ferguson, licensed Bahamas real estate agent.
Your agent and tax guide
Glenn Ferguson - Full Cost Transparency Before Every Offer
Glenn provides a complete personalised tax and cost breakdown for every buyer before the shortlist is prepared - not after you are committed to a property.
Glenn Ferguson
Licensed Bahamas Real Estate Agent (BREA)
Bahamas MLS Member
EPR Residency Consultant - 24+ Years Nassau
Full cost transparency before every offer
Glenn Ferguson has been providing Bahamas property tax guidance to foreign buyers for over 24 years. His first communication with every new buyer includes a personalised line-item cost breakdown covering the buyer's share of the conveyance VAT, legal fees, title search costs, and annual RPT estimate for any specific property under consideration - before any shortlist is finalised, before any viewing is arranged, and well before any offer is contemplated.
He is not a tax advisor and refers all buyers to a licensed Bahamian attorney for legal confirmation of costs and to their home country tax counsel for guidance on the interaction between Bahamas tax status and home country obligations. For EPR residency buyers, this tax guide pairs directly with the Bahamas residency by investment guide, and for full carrying-cost planning see the cost of owning property guide. For homes and estate purchases, see Glenn's homes specialist profile.
What Glenn's cost breakdown covers
Tax questions answered
Bahamas Property Taxes - Buyer FAQ
The specific tax questions buyers ask before purchasing a condo in Nassau - answered directly, without duplication.
What property taxes do foreigners pay when buying a condo in the Bahamas?
Foreign buyers pay the same taxes as Bahamian citizens - there is no foreign-buyer surcharge. At closing the main government tax is the 10% VAT on conveyance, which by convention is shared equally between buyer and seller, so the buyer's typical share is about 5% of the price (the split is negotiable and stated in the Agreement for Sale). The buyer also pays their own legal fees of 2.5% to 3.5% plus 10% VAT on those fees, and title search and disbursements of about $2,000 to $4,000. In a standard 50/50 split, total buyer-side closing costs run roughly 8% to 9% of the purchase price; if the buyer absorbs the full conveyance VAT in a net-to-vendor deal, that can rise toward 13%. Glenn provides a personalised full cost breakdown for every buyer before any offer is prepared - see the current Nassau condo listings for available properties.
How much is real property tax on a condo in Nassau Bahamas?
Annual real property tax on a non-owner-occupied (investment, rental, or second-home) Nassau condominium is 0.75% on the first $500,000 of assessed value, 1% on $500,001 to $2,000,000, and 1.5% above $2,000,000, with no general annual cap, under the Real Property Tax Act, as amended. A $1M unit assessed at purchase price is about $8,750 a year; a $2.65M Aqualina unit about $28,500; a $5M penthouse about $63,750. Owner-occupied primary residences are taxed more lightly: the first $300,000 is exempt, $300,001 to $500,000 at 0.625%, and above $500,000 at 1%, capped at $150,000 a year - a $900K owner-occupied unit is about $5,250. Condos in an approved hotel rental programme are taxed instead under the condo-hotel tax (a flat 0.46875% of assessed value, offset by rental VAT); estimate any of these with the property tax calculator.
Is there capital gains tax on Bahamas property?
No. The Bahamas charges no capital gains tax on the appreciation of real estate or any other investment. When you sell a Nassau condo regardless of how much it has increased in value - whether that is $100,000 or $2,000,000 - there is no Bahamian government tax on the gain. This applies to both Bahamian citizens and foreign owners. There is no exception based on nationality, holding period, or property value. The absence of capital gains tax is one of the two most structurally significant tax advantages of Bahamas property ownership compared to equivalent markets in the Caribbean, Florida, and Europe, alongside the absence of income tax on rental proceeds.
What is the conveyance VAT in the Bahamas?
VAT on conveyance is the government transaction tax that replaced stamp duty. For foreign buyers it is a flat 10% of the purchase price regardless of value; Bahamian citizens pay graduated rates from 2.5% to 10%, with first-time-buyer relief. By long-standing convention the 10% is shared equally between buyer and seller in a gross sale, so each side typically pays 5%, but the allocation is negotiable and set out in the Agreement for Sale - in a net-to-vendor sale the buyer agrees to pay the entire 10%. So a $1,000,000 condo carries $100,000 of conveyance VAT (buyer's customary share about $50,000) and a $5,000,000 purchase $500,000 (customary share about $250,000). It is remitted by your attorney at closing, and a VAT invoice is required before the deed can be executed.
Are there inheritance taxes on Bahamas property?
No. The Bahamas charges no inheritance tax or estate tax on property transferred at death. When a Bahamas condo is bequeathed to beneficiaries - whether they are Bahamian residents or international - there is no Bahamian government levy on the transfer. No wealth tax or annual net worth tax applies to Bahamas property ownership either. The property can be held in individual name, joint names, or through a corporate structure - all are treated the same for inheritance purposes under Bahamian law. Buyers who hold their Nassau condo as part of an international estate plan should confirm the treatment of Bahamas property in their home country estate and succession law with qualified legal counsel.
Do I pay income tax on rental income from my Bahamas condo?
The Bahamas charges no income tax on rental proceeds earned from Bahamian property by non-resident owners. Rental income - whether from short-term nightly lets or longer-term leases - is not subject to Bahamian income tax. This applies regardless of the amount of rental income generated. However, the 10% short-term rental VAT does apply to nightly rates where the property is let for short-term stays, and this must be registered with and remitted to the Bahamas government. This VAT is charged to the guest on top of the nightly rate - it is not deducted from the owner's proceeds unless the owner absorbs it. The buyer's home country tax obligations on Bahamas rental income are a separate matter determined entirely by home country tax law and are outside the scope of this guide.
What are the total closing costs when buying a condo in the Bahamas?
In a standard 50/50 conveyance-VAT split, total buyer-side closing costs run roughly 8% to 9% of the purchase price. The three components are: (1) the buyer's share of the 10% VAT on conveyance - about 5% of the price in a standard split, negotiable, and the full 10% only if the buyer absorbs it in a net-to-vendor deal; (2) the buyer's own legal fees of 2.5% to 3.5% of the purchase price plus a further 10% VAT on those legal fees; and (3) title search and disbursements of $2,000 to $4,000. On a $1M condo that is roughly $79,500 to $92,500 of buyer-side cost; on a $2.65M Cable Beach unit roughly $207,000 to $239,000. Glenn provides a full personalised breakdown for any specific property before any offer is made - see the beachfront condos guide for current property options.
Does the Bahamas have property tax for owner-occupied residences?
Yes, but more lightly than investment or non-owner-occupied property. Owner-occupied primary residences benefit from a $300,000 assessed-value exemption - the first $300,000 attracts no RPT at all - then 0.625% on the portion from $300,001 to $500,000 and 1% above $500,000, with total liability capped at $150,000 a year. By comparison, non-owner-occupied property is taxed at 0.75% to 1.5% with no general cap. To qualify for the owner-occupied classification, the owner must use the property as a residence for six months or more per year and file a sworn declaration with the Department of Inland Revenue, supported by utility bills and other documentation. Glenn advises on the owner-occupied classification process during the purchase and can refer buyers to an attorney for the formal filing.
What is the short-term rental tax in the Bahamas?
Short-term rental income from Bahamas property is subject to a 10% VAT on the nightly rental rate. This applies regardless of whether the rental is managed directly by the owner, through a platform such as Airbnb or VRBO, or through a hotel-managed rental programme such as Baha Mar Residences or Goldwynn Resort and Residences. Property owners who engage in short-term letting must register for VAT with the Bahamas government and remit the VAT collected. The VAT is typically charged to the guest on top of the nightly rate - it appears as a separate line item on the guest invoice. There is no income tax on the rental proceeds themselves for non-resident owners. For buildings where short-term rentals are permitted, Glenn reviews the HOA rental rules before any shortlist is prepared.
Who should I call to understand Bahamas property taxes before buying?
Call Glenn Ferguson directly at +1-242-395-8495. Glenn is a licensed Bahamas real estate agent with 24+ years of Nassau experience. He provides a personalised line-item cost breakdown covering your conveyance VAT share, legal fees, annual RPT estimate under both owner-occupied and non-owner-occupied classifications, HOA fees, and STR VAT context for any specific property - before any offer is prepared and at no additional cost to the buyer. For legal confirmation of all costs, Glenn refers buyers to a licensed Bahamian attorney. For home country tax implications of Bahamas ownership, he recommends consulting qualified home country tax counsel. Read Glenn's full profile here.
Read Glenn's full profile WhatsApp Glenn for your tax breakdownKnow the full cost before the first offer
Get Your Personal Tax and Cost Breakdown
Glenn Ferguson - Licensed Bahamas Real Estate Agent
EPR Residency Consultant - 24+ Years Nassau
Nassau, New Providence, Bahamas
Tell Glenn your target property or price range and he will send a full personalised cost breakdown covering your conveyance VAT share, legal fees, title search, annual RPT under both owner-occupied and non-owner-occupied rates, HOA fees for the specific development, and EPR government fees if the purchase qualifies. This breakdown is sent before any shortlist is finalised - because the numbers need to work before you see the first floor plan.
Seller pays commission in all Bahamas transactions so buyer representation and cost guidance cost nothing extra. For EPR residency buyers, this pairs with the full EPR guide. For homes, gated estates, and Out Island properties, see Glenn's homes specialist profile.
"The tax structure in the Bahamas is genuinely favourable for foreign property buyers - but only if you know it in full before you commit. The conveyance VAT is the cost that surprises most first-time buyers, mostly because they assume they pay all 10% when it is customarily split. I make sure every buyer knows their real share before they see the first property."Glenn Ferguson - Licensed Bahamas Real Estate Agent, Nassau, Bahamas
Request Your Personal Cost Breakdown
Property type, target price range, and whether EPR residency is planned. Glenn responds with a full personalised breakdown.
Glenn Ferguson - Licensed Bahamas Real Estate Agent
+1-242-395-8495 - Nassau, New Providence, Bahamas
Sources and references
Real property tax rates and classifications: Real Property Tax Act (as amended), administered by the Department of Inland Revenue, Government of The Bahamas. Conveyance VAT (10 percent, customarily split 50/50) and the Economic Permanent Residency minimum ($1,000,000 effective January 1, 2025) reflect Government of The Bahamas policy. The Bahamas has no income, capital gains, or inheritance tax; the Bahamian dollar is pegged 1:1 to the US dollar. Confirm current rates and your property's assessed value with a licensed Bahamian attorney or the Department of Inland Revenue.
The information on this page is provided for general educational guidance only and does not constitute legal, tax, or financial advice. Bahamas property tax rates, conveyance VAT rules, closing cost estimates, and all other figures are based on the Real Property Tax Act (as amended) and prevailing Bahamas government regulations as of June 2026. These are subject to change by the government of the Bahamas at any time without notice. All acquisition cost estimates are illustrative and must be confirmed by a licensed Bahamas attorney and the buyer's own qualified tax advisor before any commitment is made. The interaction between Bahamas tax status and home country tax obligations is a matter for qualified home country tax counsel and is outside the scope of this guide. Glenn Ferguson acts as a licensed real estate agent and residency consultant and is not an attorney or tax advisor. All figures in United States Dollars. Short-term rental VAT obligations must be confirmed with the Bahamas government at the time of registration. VAT on conveyance is a flat 10% for foreign buyers and graduated for Bahamian citizens; it is customarily shared equally between buyer and seller but the allocation is negotiable and set out in the Agreement for Sale. This website is operated independently and is not affiliated with any developer or resort brand.