IS BAHAMIAN PROPERTY SUBJECT TO TAX?

 

Property Subject to Tax

 

All real property in The Bahamas that is not beneficially Bahamian owned is subject to Real Property Tax unless exempted by the Hawksbill Creek Agreement (Freeport, Grand Bahama) or the Hotels Encouragement Act.

 

Purchasers of real property are required by law to provide a Declaration to the Valuation Department.  The Declaration is used by the Valuation Department in its assessment of real property tax.

 

WHEN ARE BAHAMIAN PROPERTY TAXES DUE?

 

Payment Due Dates and Penalties

 

Tax bills are issued in October and are due and payable by December 31 of the tax year.  Failure to pay by the due date may result in a penalty of 5%.

 

Real property tax constitutes a first lien on the property and is superior to any other charge, including a mortgage.

 

Unimproved land for which real property tax is in arrears may be sold at auction without any judicial proceedings.

 

For improved or residential land for which taxes are in arrears the government may sue the owners and upon the court rendering judgment may receive a writ of execution and proceed to public sale.

 

WHAT ARE BAHAMIAN TAX RATES?

 

Bahamian Real Property Tax Rates

 

The first $250,000 on owner occupied residential property is tax exempt.

On the value of owner/occupied properties between $250,000 and $500,000, the rate is 3/4 of one percent.

 

On the portion over $500,000, the tax rate is 1% of the market value of the property.

As of 2013, there is an annual ceiling of $50,000 on an owner occupied home 
 

For unimproved Bahamas property other than that exempt under the provisions of the Real Property Tax Act (section 39):

 

Upon that part of the market value that does not exceed $7,000 a fee of $100.00 
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 Bahamas property.
Upon that portion above $100,000, the rate is 1.5%.

 

For any other property, including non-exempted owner-occupied 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 Bahamas property.

 

ARE THERE EXEMPTIONS FROM PROPERTY TAX?

 

Exemptions:

 

• Bahamas property owned by Bahamians and situated in the Family Islands is exempt from real property tax.

• Bahamas property approved as commercial farm land (by the Ministers of Agriculture, Trade and Industry and Finance) is eligible for property tax exemptions.

 

Also exempt from property tax:

 

• Unimproved Bahamas property owned by Bahamians (in New Providence or the Family Islands), meaning property without physical additions or alterations, or any works benefiting the land which have not increased the market value thereof by $5,000 or more;

• Bahamas property used exclusively for charitable or public service from which no profit is derived.

• Property located in the “Port Area” of Freeport, Grand Bahama as defined in the Hawksbill Creek Agreement.