Bahamas Real Estate
Transaction fee's:
Stamp Duties & Taxes
The Government Stamp Tax on Property Conveyances
The Government Stamp Duty (Tax on the
conveyance of real property). This is a graduated Tax. The
total amount of the Tax is calculated as follows:
-
When the value of the consideration is less
than or equal to $20,000, the rate is 2%
-
When the value of the consideration is
greater than $20,000 and is less than or equal to $50,000,
the rate is 4%
-
When the value of the consideration is
greater than $50,000 and is less than or equal to $100,000,
the rate is 6%
-
When the value of the consideration is
greater than $100,000 and is less than or equal to $250,000,
the rate is 8%
-
When the value of the consideration is
greater than $250,000, the rate is 10%
The usual practice in the Bahamas is for the
tax to be shared equally between buyer and seller unless
otherwise agreed upon.
Lawyer
Fee's
Both the buyer and
the seller are responsible for 2.5% legal fees on the sale of
property.
Schedule of
Government Fee's
Application for registration - $25.00
Application for permit - $25.00
Certificate of registration:
a. the value of the property is $50,000 or less - $50.00
b. the value of the property is $101,000 and over - $100.00
Home owner resident card - $50.00
A typical sale, which is called a "Gross Sale", assumes
that the vendor will be responsible for the payment
of:
1. The real estate agents
commission (if an agent is involved). The commission
on the sale of residential developed property is 6% of
the gross sales price. The commission on the sale of
undeveloped property is 10%.
3. The vendor's legal fees. The
legal fees on a sale or purchase are usually 2 1/2 %
of the first $500,000, 2% of the next $500,000, 1% of
the next $4,000,000 and 1/2% thereafter.
The Purchaser will be responsible
for:
1. 1/2 of the Government Stamp Tax
as set out above,
2. The purchaser's legal fees as
detailed above. This fee includes the lawyers Opinion
on the title to the property.
3. Recording fees ($3.50 per page)
on the conveyance and other closing documents which
need to be recorded.
4. Payment of the permit under the
International Persons Landholding Act if applicable.
In the event that the sale is a
"Net Sale" the purchaser would be responsible for
payment of all of the above-mentioned fees
Real Property Tax
The statutes provide for a general assessment
of real property by the Chief Valuation Officer of the
Commonwealth of The Bahamas. This applies to Bahamians and
non-Bahamians owning real property in The Bahamas not exempt
from taxation as indicated in "Remarks". "Bahamian" is defined
as a citizen of The Bahamas or as a company registered under
The Companies Act in which at least 60% of the shares are
owned beneficially by Bahamians. The returns are due on or
before December 31 each year and must be filed with The Chief
Valuation Officer of the Commonwealth of The Bahamas. Owners
are required to file a Declaration of Real Property.
The return must be signed by the owner and
witnessed by an "authorized person", defined as a magistrate,
attorney, registered medical practitioner, bank officer,
minister of religion, justice of the peace or notary public
within The Bahamas or similar person outside the Commonwealth.
Such forms may be obtained from the Chief Valuation Officer.
Property is assessed before October 15. The Chief Valuation
Officer may, if it appears that any property subject to
assessment has not been assessed, within the next 10 years,
assess the property. The Chief Valuation Officer is also
required to publish before October 15, (once in The Gazette
and once in a daily newspaper published and circulated in The
Bahamas), a notice, stating:
-
Copies of the assessment lists are available
to the public at the Treasury and office of the Chief
Valuation Officer;
-
Assessment notices for each owner of
property liable to tax are available at places specified in
the notice;
-
Five days after the notice's publication, a
notice of assessment is deemed served on every owner of
property subject to tax;
-
A notice of assessment may be sent by mail
to any owner of property by the Chief Valuation Officer
after publication in The Gazette;
-
Any other matters which the Chief Valuation
Officer, with the Minister's approval, deems necessary.
Objection to a notice of assessment must be
made in writing to the Chief Valuation Officer, within 30 days
of service of the notice, stating grounds upon which the
objection is made. The Chief Valuation Officer may request
that the tax levied be paid in whole or in part at the time of
objection.
Taxes are due within 60 days of the date on
which the assessment notice is deemed to have been served.
Also, payment of one or more quarterly installments must be
made within those 60 days. These payments should be made to
the Public Treasury in Bahamian or US dollars, preferably as a
bank draft or international postal order. Personal cheques are
not acceptable.
Rates of Taxes
In respect of owner-occupied property:
The first $250,000 is tax exempt.
-
On that portion in excess of $250,000 and
less than $500,000 the rate of tax is ¾% of the market value
of the property;
-
On the portion in excess of $500,000 the tax
rate is 1% of the market value of the property.
In respect of unimproved property
other than unimproved property exempt by virtue of Section 39
of the Real Property Tax Act:
-
Upon that part of the market value that does
not exceed $3,000 a fee of $30.00.
-
Upon that part of the market value which
exceeds $3,000 but does not exceed $100,000 a tax rate of 1%
per annum of the market value of the property.
-
More than $100,000 of market value 1½%.
In respect of any other property:
-
Upon that part of the market value that does
not exceed $500,000 a tax at the rate of 1% per annum of the
market value;
-
Upon that part of the market value in excess
of $500,000 a tax at the rate of 2% of the market value of
the property.
"Market Value is defined as the amount the
property would realize, if sold in the open market, without
any encumbrances or restrictions. If the tax is not paid on or
before the last day the tax becomes due, a 10% surcharge is
added. In the case of an extension of time, the Chief
Valuation Officer may postpone the date on which the tax is
payable in a particular case, by notice in writing.
|
|
