Why global buyers consider The Bahamas.
The Bahamas is widely known for a tax environment with no personal income tax, capital gains tax or inheritance tax at the national level—but property ownership still carries transaction taxes, real property tax and professional costs.
No personal income tax
The Bahamas does not impose personal income tax on individuals. International buyers should still obtain advice in their home tax jurisdiction.
No capital gains tax
The country does not levy a general capital gains tax, though transaction VAT and other fees can apply to real estate transfers.
No inheritance tax
The Bahamas does not impose inheritance tax, but cross-border estate and ownership structures require professional legal/tax planning.
Foreign real estate transfers are not tax-free.
BHHS Bahamas’ buyer guide states that the VAT rate on real estate transactions for foreigners is a flat 10%. Legal fees, commissions and other professional services may also be subject to VAT. The allocation of transfer costs can be negotiated between buyer and seller.
Always ask your Bahamian attorney to confirm the current tax treatment and transaction structure before signing an agreement.
Real Property Tax
Annual tax depends on property classification, value and exemptions. BHHS Bahamas publishes separate schedules for owner-occupied and commercial/investment property. Private islands may not fit a simple residential example, especially when undeveloped, rented or held for commercial development.
Read the BHHS Bahamas buyer guide →Foreign buyers should plan the permit path early.
Bahamas Government guidance notes that non-Bahamians can buy real estate, but a Permit to Acquire Property is required in situations including undeveloped land with two or more adjoining acres and certain non-owner-occupied uses. That makes legal structuring and intended-use analysis especially important for private islands.
Residency
Real estate ownership can also be relevant to residency applications. Thresholds and processing rules change over time, so current immigration and investment guidance should be verified with a Bahamian attorney and the relevant government authority rather than relying on an old marketing page.
Combine tax planning with property selection.
Find the island first—then have local legal and tax professionals validate the ownership structure for your goals.
Browse BHHS Private Islands