Real Estate Update

The new national Budget for the fiscal year 01 July 2012 to 30 June 2013 has introduced tax incentives for investors in high valued Bahamian real estate both on the purchase and on the holding.
Reduced tax on purchase – Stamp tax on the purchase of Bahamian real estate valued over $250,000.00 is now reduced from 12% to 10%.

Reduced tax on holding – Effective January 2013, real property tax will be capped at $50,000.00 per annum for property designated as owner-occupied (non-rented/residential). The effect of the cap will be that very high valued real estate ($6,250,000.00 and above) which at the applicable rate of real property tax would otherwise be liable for real property tax in excess of $50,000.00 per annum, will pay no more than $50,000.00 per annum.

This should incentivize foreign investors considering a second home in The Bahamas in one of several luxury communities.
For additional information please contact Adrian White at awhite@delaneypartners.com