With a mature tourism infrastructure supporting approximately 1.5 million stopover visitors and 3.5 million cruise visitors per annum, and progressive service industry, tourism has become the largest driver of the economic activity in the Bahamas.
The islands’ zero rate income tax, capital gains tax, wealth tax, and VAT is clearly luring wealthy foreign investors looking to avoid spiraling tax burdens overseas. The Bahamas’ tax situation is very attractive to foreigners, many of whom choose to become residents. There are no taxes on income, sales, estates or inheritances and there is no capital gains tax on real estate. Foreigners who own properties in the Bahamas are eligible for a homeowner’s residence card (renewable annually) and those who purchase properties valued at least US$500,000 are given priority in permanent residence applications. Foreign buyers face no restrictions on real estate purchases. Local financing is available, though at terms that might be less attractive than those in the United States, said Adrian R. White, a real estate lawyer based in Nassau, who added that most luxury properties are bought with cash. Agents recommend that buyers hire a qualified real estate lawyer to guide them through the process, which takes about 30 days. “The attorney,” Mr. White said, “will typically conduct an investigation of the property — including title to the property — to ensure that no outstanding charges or liens are present.”Buyers are not required to be present at the closing, he said, noting that they can finalize documents via courier or grant power-of-attorney rights to their lawyers.
Use an independent Lawyer Adrian R. White -The golden rule when buying anywhere overseas. Save time, money and a lot of stress.
Adrian R. White
White Law Chambers
Palm Tree Cottage, The Islands Club
West Bay Street (North), Cable Beach
- O. Box SS-19619
Support Design & Fashion Magazine