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Bahamas – Property Taxes

Property Tax

In The Bahamas, property tax is levied annually on the value of the property, which is determined by the government. The tax rate is 0.75% of the property’s value, with a cap of $15,000. For example, if the value of a property is $1 million, the property tax would be $7,500.

Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is not levied in the Bahamas. As a result, the sale of a property is not taxed.

Inheritance Tax

Inheritance tax is not levied in The Bahamas. As a result, properties passed down through inheritance are not taxed.

Gift Tax

Gift tax is not levied in the Bahamas. As a result, properties gifted are not taxed.

Tax on Property Income

Properties used for rental purposes in The Bahamas are subject to a 7.5% tax on rental income. This tax is levied annually and must be paid by the property owner.


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Tax Advantages in Buying a House in the Bahamas

  • No Capital Gains Tax (CGT): The absence of CGT in the Bahamas means that profits made from the sale of a property are not taxed.
  • No Inheritance Tax: The absence of inheritance tax in the Bahamas means that properties passed down through inheritance are not taxed.
  • No Gift Tax: The absence of gift tax in The Bahamas means that properties gifted are not taxed.
  • Tax-Friendly Environment: the Bahamas has a tax-friendly environment, with low taxes and a lack of certain taxes such as CGT, inheritance tax, and gift tax, making it an attractive destination for property ownership.

Conclusion

In the Bahamas, taxes and fees associated with house purchasing and selling are relatively low compared to other countries. The absence of certain taxes such as Capital Gains Tax, Inheritance Tax, and Gift Tax make it an attractive destination for property ownership. However, properties used for rental purposes are subject to a 7.5% tax on rental income, which must be paid annually by the property owner.


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