Costs of Selling a Property
Government Stamp Tax on Property Conveyances
- 2.5 % Government Stamp Tax on all real estate transactions under $100,000.
- 10% Government Stamp Tax on all real estate transactions over $100,000.
The usual practice in the Bahamas is for the stamp tax to be shared equally between buyer and seller unless otherwise agreed upon.
Real Estate Commission
Real estate sales and rental commissions are typically paid by the vendor or landlord. This is typical but is subject to change during negotiations if the buyer and seller agree to a different deal structure.
The commissions on real estate transactions are as follows:
Unimproved property: 10% of the sales price
Improved property: 6% of the sales price
Commercial Building or Property: 10% of the sales price
Business: 10 % of the sales price.
12 % Value Added Tax (VAT) is charged on all good and services. This includes legal work, real estate commissions or appraisals.
Legal fees can vary, but average around 2.5% of the selling price of the property. There is also a small recording fee when the title deeds are recorded at the Public Registry. Buyer and Seller are normally responsible for their own attorney fees.
It is customary in the Bahamas for the sales price to be quoted as a gross price. In a gross sale the seller is responsible for the payment of 50% of the government VAT on the conveyance, the real estate commission, and the seller’s legal fees.