http://www.bahamas-travel.org/grand-bahama-sites/
Abstract:
Third-richest country in the Western Hemisphere
Not taxed by either residents or nonresidents.
Capital = Nassau
Population = 323 000
Currency = U.S. dollars
Economic Situation
Has everyone has their Pina Coladas Ready? Everybody got one of those little umbrellas? A piece of pineapple and maybe some nutmeg sprinkled on top of affection full? J Ok? Great!
Now take your first sip and think "The Bahamas ……… and suddenly you see yourself transported to a vibrant turquoise sea and sandy beaches that stretch for miles. You sit in your beautiful villa, while serving a seafood cocktail of shrimp and crabs, while feeling the bronze Sun members ……… So ….. want to go?
Although tourism is a major player in keeping the economy afloat, it's all going to an island paradise:
There are no taxes on income, taxes on capital gains or inheritance taxes are payable either by residents or nonresidents.
The laws are pro-landlord and property owner and only a value less than B $ 25,000 is subject to the Rent Control Act.
The Economic and political environment is stable and GDP per capita is among the highest in the Caribbean.
Seasonal rental property% higher yield 10-12 per season.
In terms of GDP per capita has been increased since early 1990 when the growth was a constant 3% BGF.
The only blight in this constant growth of GDP per capita in the 1990s when inflation peaked at just over 6%
But even high inflation could not keep away the tourists as seen in tourist arrivals.
Inflation has been a steady downward spiral since 1990 and therefore this has boosted GDP growth.
Even when the economy is mainly in the U.S. economy to ensure growth, tourist arrivals figures have remained stable since early 1990.
Market Review Property
Therefore, even though the Bahamas is largely based on the U.S. economy to ensure its growth and the housing market remains very much in favor of investors …….
Here's why:
Restriction on foreign property purchase?
No restrictions foreigners to buy properties:
The only exception is government permission prior to the transaction, if the property is undeveloped land and is larger five acres.
Are they stable rental income?
The yields are about 5% -6% for properties located in coastal areas Nassau and other islands.
Rental yields are good in the gated communities because there are many expatriate accountants and lawyers.
Properties with seasonal rates have yields of 12% to 15% in Grand Bahama is so close to the U.S., many traveling back and forth.
Is the Bahamas Act, Pro-owner or tenant-Pro?
The Landord and tenant act of the Bahamas is Pro-owner:
Rents can be freely agreed lease long-term and short term.
The landlord must give the tenant proper notice of rent due and possible eviction for failure to hire.
If the tenant does not pay rent on time, the owner can call the local police and recover the property.
Even through a court order is not necessary for eviction of tenants, most tenants defaulting owners bring to court and sue for rent is not available.
How much tax is paid on my property?
No income taxes, taxes on capital gains or inheritance taxes are payable either by residents or nonresidents.
The Property Tax is a maximum of 2% for properties worth more than $ 500,000 (250,000 GBP, ZAR: R3, 500,000)
As an investor, the only restriction that arises Bahamas purchase of the costs involved in the purchasing process:
Registration Fees: The buyer must pay the fees of several of the items to be recorded. These fees are minimal and are not expected to exceed 0.5% of property value.
Stamp Duty: tax the stamp must be paid upon delivery of the property. Stamp is typically split between buyer and seller.
Up to 20,000
2%
20000.01 to 50,000
4%
50000.01 to 100,000
6%
100,000.01 to 250,000
8%
Over 250,000
10%
Terms fees: Each party pays its own attorney. Attorney fees are determined based on value Property:
First 500 000
2.5%
500 000 Next
2.0%
Next 4 million
1,0%
More than 5,000,000
0.5%
Real Estate Agent Fee: The fees for real estate agents are set by the Bahamas Association of Realtors.
The rates are determined as follows:
Undeveloped / vacant land on all islands except Grand Bahama
10%
Improved residential properties on the islands of the output
8%
All types of property in Grand Bahama
15%
Improved residential properties (houses, condominiums) in all the other islands like New Providence (Nassau site) 6%
Conclusion
A first , he might see the Bahamas as an unattainable paradise, reserved only for the rich and powerful. Exclusively frequented by celebrities to escape the spotlight and for us mere mortals just to see and I hope …….
But in actual fact, the Bahamas is a place that has all the elements resulting in investors go crosseyed: no income tax, the law for owners and good rental yields:)
Horizon Consultancy believes in transparent business ethics and we ensure that all our clients are fully aware of the purchasing process. We have specialised personnel who guide our clients through the process, on a step-by-step basis.