The Bahamas is open for real estate investors to travel to the country, live, and purchase a property. With numerous benefits, now it’s a good time to invest in The Bahamas.
Property specialist Engel & Volkers Bahamas has brought together a brief guide for those who are looking to come, live and buy a property.
International and domestic travel updates
Currently, commercial and private flights are permitted from all countries, with travelers undergoing the same requirements of entry.
Several Commercial Airlines and Private Charters are operating to and from The Bahamas. Here is a list of private flights and a schedule of all commercial flights currently operating at the LPIA and FBOs.
- Odysee Aviation
- Jet Aviation
- Trans Island Airways
- Tropix Air
- Lynden Pindling International November Flight Operations at LPIA.
Incentives to stay, work, and invest in property.
To maximize its position as a resort destination and real estate investment mecca, the government of The Bahamas has implemented various incentives. Find the one that suits your needs best, below.
The Bahamas Permanent Residency Programme
High Net Worth Investors provide a significant boost to the Bahamas economy, and this is recognized through the Bahamas Permanent Residency Programme.
The government’s requirement is a $750,000 purchase of a residence or $1,500,000 to have the residency process ‘fast-tracked’. Engel & Volkers License Partner Colin Lightbourn says, “The Bahamas Permanent Residency program has become very popular with high net worth individuals from Europe, Canada and South America in particular. Qualified investors are seeking long-term investment strategies that suit both financial and lifestyle goals.
“It’s not only the potential tax benefits and portfolio diversification, but we have the proximity to the US, some of the world’s most beautiful beaches and water and tremendous opportunities and products in the real estate market. The infrastructure is also here, and the ability to move freely through the islands and internationally is very convenient.”
Permanent Residency is also not limited to one individual. A person holding a certificate of permanent residence can include their wife or husband, or dependent child under 18 and may have them endorsed on the certificate at the time of his original application or a subsequent date. Permanent residents may bring their assistants or household staff with them to The Bahamas, subject to government clearance and the issuance of work permits.
The Hotels Encouragement Act
The Hotels Encouragement Act allows the duty to be refunded on all approved hotel construction materials, furnishings, and fixtures entering the country. This also includes plants.
In addition, it provides real property tax exemptions for ten years and reduced rates for up to 30 years, plus other tax savings on new hotel earnings.
Prime Minister Dr. Hubert Minnis says the Hotels Encouragement Act can help boost Bahamas hotel development today and stimulate economic growth due to COVID-19 economic fallout.
The act encourages “the construction of hotels in The Bahamas by providing for the refund of customs duties and emergency taxes and certain other concessions, and for the exemption of such hotels from certain taxation, and to relieve existing hotels from certain taxation.”
Any promoter or owner who wants to erect, repair, or refurbish premises for use as a new hotel may apply to the Minister for approval. Qualifying hotels must have at least 10 rooms in New Providence and at least four rooms in the Family Islands and fulfill other requirements.
The Extended Stay Visa Program
The planned new Extended Stay Visa Program will allow people to work or study in the Bahamas for up to a year.
The scheme will update and expand the current annual residence regime and make it easier and faster for people to apply and be approved.
A statement from the Economic Recovery Committee, which is behind the proposal, says, “The initiative will be marketed to small firms who may want to shift operations for the full year. It will also target university students – a segment not highlighted in other similar initiatives. Successful applicants will have to demonstrate financial means to support themselves while in The Bahamas.”
Tourism Minister Dionisio D’Aguilar explains, “The Bahamas has had an annual residency program for some time. However, given the move to remote work and study from home protocols in response to COVID-19, the ERC saw an opportunity to recast the program – and to expand it to accommodate university students whose schools will be offering remote learning for the upcoming academic year.”
Details of the Extended Stay Visa Programme are still being finalized.
Why invest in Bahamas property?
There are many reasons to invest in Bahamas property, as E&V Bahamas outlines in this blog post.
They include stable economic, legal, and political systems, a range of essential public services and infrastructure, and various financial and tax incentives for Bahamas property investors.
Overseas investors may acquire residential properties in The Bahamas of up to two acres without prior government approval.
As we mentioned previously, investors who purchase a home in The Bahamas valued at $750,000 or more can apply for Permanent Residency in The Bahamas.
Luxury property opportunities in the Bahamas
E&V Bahamas offers a range of prime properties that offer considerable earnings potential. For instance, the luxury two-bed condo One Ocean #702, offers lease-to-own or leaseback guarantee options.
Palm Cay, the 69-acre private oceanfront community featuring luxury townhomes, condominiums, marina cottages, and single-family home sites with ocean views and The Residences at Goldwynn are among other luxury Bahamas real estate developments where leaseback guarantees and other incentives can be obtained.
Contact our advisors for more information on properties and requirements to travel to The Bahamas.
