Transaction Costs, Taxes and Ongoing Ownership Costs

VAT on the conveyance

Since the 2025 Conveyancing Act amendment, a VAT invoice must be obtained from the Department of Inland Revenue before a conveyance, mortgage deed, or lease can be executed. DIR issues a provisional invoice through its portal; a final invoice follows once the executed instrument is submitted for stamping, and it must be paid within 180 days of execution. Property owners must also file a declaration with DIR within 30 days of conveying a beneficial interest.

Real Property Tax — current structure

Value band (owner-occupied)	Rate	Notes
First $300,000	Exempt	Applies to owner-occupied property
$300,001 – $500,000	0.625%	Applies to owner-occupied property
Above $500,000	1%, capped at $150,000/year	Owner-occupied status generally requires ~6 months/year residency

Verify before you rely on this: a Real Property Tax (Amendment) Act, 2026 has been drafted with a separate cap for foreign-owned owner-occupied property and other changes, dated to take effect 1 July 2026. We have not independently confirmed its enactment and commencement as of this page’s last review, so the table above reflects the structure in force before that amendment. Confirm current rates with the Department of Inland Revenue before you rely on any figure here.

Representative transaction costs

Item	Who commonly pays	Legal or customary?	Last verified
VAT on the conveyance	Negotiated between buyer and seller	Statutory tax; allocation is customary/contractual	9 Aug 2026
Legal fees	Each party pays their own attorney	Customary	9 Aug 2026
Brokerage commission	Seller, typically	Customary/contractual	9 Aug 2026
Survey and appraisal fees	Buyer, typically	Customary	9 Aug 2026
Recording fees	Buyer, typically	Statutory fee, customary allocation	9 Aug 2026
Mortgage/bank legal charges	Buyer, if financing	Customary, lender-driven	9 Aug 2026

What SeaStone checks

Before we give you a cost estimate

Whether the property or buyer profile triggers foreign-buyer registration/permit costs
Current DIR guidance on the provisional VAT invoice process for your specific transaction
Whether any concessions might apply — and whether they are actually confirmed, not assumed

Frequently asked questions

What is Real Property Tax and how is it calculated?

An annual tax on Bahamian real property, banded by value, with different treatment for owner-occupied, foreign-owned owner-occupied, and other property classes — confirm your property’s classification with DIR.

What VAT applies to a purchase?

VAT applies to the conveyance itself, plus VAT on professional services like legal and brokerage fees.

Are there first-time buyer concessions?

Some concessions have existed at various times; verify current eligibility and application requirements with DIR before assuming one applies to you.

What if I miss the Real Property Tax deadline?

Arrears carry interest/penalties and can create complications at resale — address them with DIR and your attorney as soon as possible.

This guide provides general information and was reviewed as of 9 August 2026. Bahamian laws, taxes, fees, government procedures, lending criteria, planning requirements, and immigration policies may change. Property facts and approval requirements vary by island, parcel, ownership structure, intended use, and project scope. All buyers and sellers must retain a licensed Bahamian attorney for legal and title-transfer advice. Obtain independent advice from a licensed Bahamian attorney and the relevant qualified tax, financial, planning, engineering, environmental, appraisal, insurance, and immigration professionals before acting.