The Short Answer
- One-time cost at purchase
- Foreign buyers pay 10% conveyance VAT on the price, plus about 2.75% in legal fees (2.5% fee with 10% VAT). The seller pays the agent's commission.
- Annual cost to own
- Real property tax (low, and capped), insurance, maintenance at 1%–3% of value, utilities, grounds and any HOA fees.
- Owner-occupied property tax
- First $300,000 exempt; 0.625% on $300,000–$500,000; 1% above $500,000; capped at $150,000 a year.
- Residency
- A renewable Homeowner's Residence Card for any owner; Permanent Residency from a $1,000,000 property held 10 years.
If you are buying property in The Bahamas, the question that matters most is not the asking price. It is this: what will it cost to own this property once the keys are in your hand?
Over more than two decades helping investors, second-home buyers, retirees and relocation clients across The Bahamas, I have watched too many people fix on the purchase price and miss the recurring cost of ownership. The Bahamas is a strong market for international buyers, with no income tax, no capital gains tax, no inheritance tax and no wealth tax. But the costs below are real, and you should know them before you commit.
This guide covers each one, current to 2026.
For most owners, yearly costs are real property tax, insurance, maintenance, utilities, HOA or condo fees, landscaping and pool service, and for some estates security. A beachfront home costs more to run each year than an inland house or a condo.
01 / One-TimeWhat You Pay at Purchase
Before the yearly bills begin, budget for the cost of buying.
Who pays the real estate commission in The Bahamas?
In nearly all Bahamian transactions the seller pays the agent's commission (6% on developed property, 10% on undeveloped land, per the BREA scale). Buyers generally pay no direct brokerage fee.
How much is conveyance VAT in The Bahamas?
For non-Bahamian buyers, conveyance VAT is a flat 10% of the purchase price, applied to the full value with no bands. Since July 2023 this is the formal name for what people used to call "stamp duty." By convention it is split 50/50 between buyer and seller, but the split is negotiable, and in a "net" sale it can fall entirely to the buyer.
On a $2,000,000 purchase the conveyance VAT is $200,000 before any legal fees. For most buyers it is the single largest closing cost, so put the number in your budget before you start viewing.
How much are legal fees when buying property in The Bahamas?
Legal fees follow the Bahamas Bar Association scale of 2.5% of the purchase price plus 10% VAT on that fee, so budget about 2.75% of price in practice. Always retain an experienced Bahamian real estate attorney.
| Purchase Price | Legal Fee (2.5%) | With 10% VAT on fee |
|---|---|---|
| $500,000 | $12,500 | $13,750 |
| $1,000,000 | $25,000 | $27,500 |
| $5,000,000 | $125,000 | $137,500 |
A small recording fee applies when the deed is registered at the Public Registry. To total your acquisition costs, use the Bahamas closing costs calculator.
Every buyer I work with gets the conveyance VAT figure before we see the first property. On a two-million-dollar purchase that is two hundred thousand dollars in government tax, separate from legal fees. I would rather a client see that number in week one than on the closing statement in week six. It changes which homes we even walk through.
02 / AnnualReal Property Tax
Property tax in The Bahamas is low next to most U.S. states, and owner-occupied homes are taxed on a tiered structure. For 2026 it works as follows:
- First $300,000 of market value: exempt
- $300,000 to $500,000: 0.625% a year
- Value above $500,000: 1% a year
- Annual liability is capped at $150,000 for owner-occupied homes
To keep owner-occupied status you must live in the home for six months or more each year. Investment, rental and commercial property is taxed on a different scale set by the Department of Inland Revenue: 0.75% on the first $500,000, 1% on the next $1.5 million (the $500,000 to $2 million band), and 1.5% on the balance above $2 million. Government rates can change, so confirm current figures with the Department of Inland Revenue before you buy. For a fuller breakdown see the Bahamas property taxes guide, or estimate yours with the 2026 property tax calculator.
03 / AnnualInsurance
Insurance is the cost buyers most often leave out of the budget, and for waterfront homes it is frequently the largest yearly line. Cover usually bundles hurricane, windstorm, fire, liability and, where relevant, flood.
What sets the premium
- Waterfront versus inland location
- Construction type and elevation
- Property age and claims history
- Full replacement value
As a rule of thumb, inland homes run about 0.5%–0.8% of replacement value a year; exposed oceanfront homes can reach 1%–1.5% or more.
04 / AnnualMaintenance, Utilities and Grounds
Budget 1%–3% of property value a year for maintenance: repairs, painting, exterior upkeep, appliance replacement and pest control. Salt air and tropical weather wear on coastal homes faster, pushing the figure toward the top of that range.
Utilities (electricity, water, internet, cable, generator fuel) track size and usage; pools, heavy air-conditioning, guest cottages and docks all add to the bill. Tropical gardens, infinity pools and beachfront grounds usually need professional landscaping and pool service to hold their value and look.
HOA and condo fees
In gated communities and condominium developments such as Ocean Club Estates, Albany, Palm Cay and Old Fort Bay, monthly fees typically cover security, landscaping, common-area upkeep, marina facilities, beach clubs and fitness centres. Read the HOA budget before you buy, and see how HOA and maintenance fees work.
05 / FundingFinancing as a Non-Resident
Yes, foreign buyers can get a mortgage in The Bahamas, though many luxury and residency-track buyers pay cash. Where you do finance, the loan itself becomes a carrying cost worth planning for, and non-resident terms are stricter than those offered to residents.
- Deposit: expect 30%–50% down; private lenders can require more
- Interest rate: roughly 6%–8% for foreign buyers, against about 5%–6% for residents
- Term: typically 15–25 years, shorter than a resident loan
- Lenders: the international banks with Bahamian branches, such as RBC Royal Bank, CIBC Caribbean and Scotiabank
Banks generally want total monthly debt payments to stay within about 45% of gross income, plus three years of tax returns, recent bank statements and proof of income or assets. One point to plan around: a U.S. or Canadian mortgage does not transfer to a Bahamian purchase, so you either arrange a local loan or finance through your home country. The Bahamian dollar is pegged 1:1 to the U.S. dollar, which keeps pricing simple, though you should still budget for wire and any FX handling. Confirm current rates and deposit requirements with your lender, as these move with the market.
06 / StrategyTax Position and Residency
The Bahamas levies no personal income tax, no capital gains tax, no inheritance or estate tax and no wealth tax. For international buyers these advantages help offset ownership costs and support long-term wealth planning. Home-country obligations still apply, so see the notes for U.S. buyers and Canadian buyers.
Ownership can also support residency goals. Any property owner can apply for a renewable Homeowner's Residence Card. For permanent status, Economic Permanent Residency now requires a qualifying real estate investment of at least $1,000,000 USD (raised from $750,000 effective January 1, 2025), held for a minimum of 10 years, with a non-refundable government fee around $20,000. Higher-value purchases (commonly cited at $1,500,000 and above) may reach a priority review track, though that threshold should be confirmed with immigration counsel. Read more on permanent residency and residency by investment.
Under the International Persons Landholding Act, foreign nationals can buy most residential property in The Bahamas with full ownership rights. Larger or multi-acre purchases may need registration or a permit, which your attorney will confirm. See the full guide to buying property as a foreign buyer.
Ownership cost is one half of relocating. For shipping your belongings, customs duty, importing a vehicle, pets, schools and settling in, read the companion guide: Moving to The Bahamas: Relocation & Logistics.
