Property Fees & Taxes
Real Property Tax
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All property in the Bahamas is governed by the Real Property Act 1969.Real Property tax is an annual tax charged on the Market value of property and applies to Bahamian and non-Bahamians owning real property not exempted from taxation.
“Real Property” includes all land, buildings, machinery, plant and equipment attached to land.
“Bahamian is defined as a citizen of the Bahamas or a company registered under The Companies Act,in which at least 60% of the shares are beneficially owned by Bahamians.
Owners of real property are required to file a formal declaration of all Real Property annually, for placement on the Tax Roll.
Procedures for Assessments
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(1)Written letter form from owner or duly authorize agent(s) requesting assessment.
(2)History of Title (Showing all owners)
(3)Copy of Conveyance(s)
(4)Copy of occupancy certificate(Bahamas Electricity Corporation letter of initial supply)
(5)Completed Declaration Form (including present Market Value).
(6)Survey Plan (with coordinates by registered surveyor & signed signature Surveyor General).
(7)Completed affirmation for owner occupied properties
(8)Identity of Bahamian Status (first 4 pages of passport).
(9)Mortgage if any (Bank,insurance,or mortgage agency).
Notice of Assessments – notice for 2008 shall be issued on or before October 15th 2007 after advertisements have appeared in the government gazette and newspaper. Taxes are due and payable before December 31st 2007,following the date of which the notice of assessment is deemed served. Payment may be made in four quarterly installments,if the owner elects and all unpaid accounts shall acure a surcharge.
Effective Junuary 1st 1994, real property tax rated are:
Owner Occupied Property:
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(1) Tax exempt if the owner resides on the property exclusively as a dwelling home.
(2) Tax exempt on the first $250,000.00 of market value.
(3) 1% is assessed on portions above $250k and less than $500k.
(4) 1.5% is assessed on portions above 500k.
Unimproved Property other than those exempt under Section 39 of the Real Property Tax Acr:
(1) $30.00 is assessed on that portion of market value less than or equal to $3000.00 and less that $100,000.00
All other property
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(1) 1% is assessed on market value less that $500,000.00
(2) 2% is assessed on market value over $3000.00 and less than $500,000.00.
Exemptions
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(1) All Bahamian owned unimproved property(property without alterations or physical additions or any other works that increases the market value by $5000.00 or more).
(2) Property owned by Bahamians and situated in the Family Islands
(3) Property approved as commercial farm land by the Minister of Agriculture and Industry and Finance.
(4) Property used for Religious Worship,school buildings their gardens and playgrounds.
(5) Property owned by foreign governments
(6) Property owned by foreign nations used for consular service,or consular residences.
(7) Property used for charitable or public service which no profit is derived.
Any person has the right of objection excersiable within thirty days of the date on which the notive of Assessment was deemed served if there is a grievance above about the Notice of Assessment.
Government Stamp Tax
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Government stamp tax is a graduated tax calculated on all real property conveyance.This means the tax increases as the consideration on a property increases.In the Bahamas during a purchasethis tax is usually shared between the buyer and seller,unless otherwise agreed upon.
4% stamp tax on conveyance up to $20,000.00
6% stamp tax on conveyances between $20,001 to $50,000.00
8% stamp tax on conveyances between $50,001 to $100,000.00
10% stamp tax on conveyance between $100,001 to $250,000.00
12% stamp tax on conveyance over $250,001.00
Real Estate Commission
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10% on the sale price on unimproved property.
6% on the sale price on improved property.
10% on the sale price on commercial Property or Business.
Legal & Government Fees
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Legal fees in Property matters equals 2.5% of the selling price
Stamp Tax fees in Property matters other than above is assessed at 7% of the selling price.
Government recording fees costs about $4.50 per page.
Application of registration is $25.00
Permit Application is $25.00.
Schedule of Fees
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(1) Property values of $50,000.00 or less – $50.00.
(2) Property values between $50,000.00 but less $101,000.00 – $75.00.
(3) Property values over $101,000 – $100.00.
(4) Home owner resident card – $500.00.
