Whether you have been dreaming of your very first home or need a new home to fit your current lifestyle, now is the time to experience the freedom of home ownership!
As of July 1st, real property taxes decreased, closing costs reduced and first-time Bahamian home-owner benefits increased.
Each time a property changes ownership, VAT is charged on the stamping of the conveyance. The rate charged was 10% of the value, for every property valued greater than $100,000. As of July 1st, every new homeowner will enjoy a sliding scale that could save them up to 6% on the VAT charged.
Real property tax is charged annually each December, based on the value of your home. Historically the first $250,000 value of owner-occupied homes was exempted from real property tax, but as of July 1st, the exemption has been increased to the first $300,000 value of owner-occupied homes. And don’t forget to pay your real property tax by March 31st each year to save an additional 10% on your bill!
Are you entering the housing market for the first time and are a Bahamian citizen? Congratulations, there is no better time than now. As a first-time Bahamian homeowner, you are entitled to a further reduction in the VAT you pay on the stamping of the conveyance.
Learn more about VAT on Real Estate Transactions with our Frequently Asked Questions.