What it really costs to buy property in The Bahamas

By the BahaRealty.com editorial team · Updated 2026-09-27

The short answer

Plan on roughly 7–8% of the price on top of the purchase if VAT is split with the seller, and up to about 13% if you pay all transaction costs. A 2026 worked example for an $800,000 home put the buyer’s share at about 7.75% with VAT split, and about 12.75% on a net basis.

VAT on the conveyance

Non-Bahamian buyers pay VAT at a flat 10% on the greater of the price or market value. Buyer and seller customarily split it, but the split is a negotiating point. Under rules effective July 2025, VAT must be paid within 180 days of executing the deed, lenders verify the VAT invoice before releasing funds, and a beneficial-interest declaration is due within 30 days.

Attorney and registration

A licensed Bahamian attorney handles the conveyance: title searches across the registries, the VAT invoice, the wet-signature deed and recording. Budget for their fee and for recording costs, and ask for a written estimate at the start.

Broker commission

Commission is normally paid by the seller. The Bahamas Real Estate Association scale is 6% on developed property and 10% on undeveloped land.

Annual property tax

Real property tax applies each year and differs for owner-occupied and non-Bahamian-owned property. Rates and caps have changed recently, so have your attorney confirm the current rate for your property before you sign.

Sources

• The Rio Times, Buying property in the Bahamas (2026)
• ParrisWhittaker, Buying property in The Bahamas (2026)
• The Bahamas Real Estate Association

General information, not legal or tax advice. Confirm details with a licensed Bahamian attorney.