Bahamas - Real Property taxes

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Land is currently assessed for the payment of real property tax at the rates set forth below per annum:

OWNER-OCCUPIED PROPERTY		COMMERICAL PROPERTY		VACANT LAND		CROWN LEASED CAY
First $250,0000	Exempt	First $500,000	1%	First $7,000	$100.00	Market value of improvements under $10 Million	0.5%
Homes belonging to first time homeowners with market value above $250,000 but under $500,000	Exempt for 5 years from date of occupancy or conveyance1	Balance	2%	Balance	1.5%	Market value of improvements above $10 Million	0.25%
Homes with market value above $250,000 but under $500,000	0.75%2
Homes with market value above $500,000 but under $5,000,000	1%3
Homes with market value above $5,000,000	0.25% upon that part of the market value which exceeds $5,000,0004

¹ Section 3(d) of Real Property Tax (Amendment) Act, 2009
² Section 5 of Real Property Tax (Amendment) Act, 2008
³ Section 3(2) of Real Property Tax (Amendment) Act, 2002
⁴ Section 3(a)(iii) of Real Property Tax (Amendment) Act, 2009

Owner-Occupied Property

The Real Property Tax (Amendment) Act, 2008, was implemented on 1st July 2008. It introduced an exemption for first time homeowners for a period of 5 years for owner-occupied property with a market value above $250,000 but under $500,000.

Previously, an owner had to occupy his home for an aggregate of 9 months per annum to qualify for the owner-occupied exemption. However, this requirement was removed by the Real Property Tax (Amendment) Act, 2009, which was implemented on 13th July 2009. Owner-occupied property is now defined as property occupied by the owner in fee simple or the mortgagor in possession who occupies and resides in the property exclusively on a permanent or seasonal basis. There is no longer a restriction on the amount of time that the owner must occupy the home on an annual basis but the property should not be leased or rented to a third party for more than 9 months during the calendar year.⁵

For owner-occupied property exceeding $5,000,000 in value, the 2009 amendment also reduced the tax from ¾% to ¼% per annum upon that part of the market value of the property which exceeds $5,000,000.

Vacant (Undeveloped) Land

The 2009 amendment introduced an entirely new rate of assessment for vacant land. Upon that part of the market value which does not exceed $7,000, the tax is $100.00 and, upon that part which exceeds $7,000, the tax is 1½%.

Undeveloped land owned by Bahamians is exempt. Property in the Family Islands owned by Bahamians is also exempt.

The remedy of the power of sale is now available to the Treasurer in relation to unimproved property in arrears where such arrears are unpaid for more than 6 months after the expiration of 30 days from becoming due.

Crown Leased Cay

As a result of the 2009 amendment, this is an entirely new category of property now being assessed. The tax is ½% per annum of the market value of the improvements under $10 million and ¼% per annum of the market value of the improvements above $10 million.

Surcharges on Arrears

The 2009 amendment introduced a new rate of surcharge on arrears of 5% per annum until payment.

This post is for your information only and is not intended to constitute a legal opinion.  If you require specific advice you should contact a Bahamian real estate attorney.  You can contact a Bahamian Real Estate attorney by clicking here.