All Harbour Island real estate transactions are subject to the Government of Bahamas Stamp Duty tax which is a transfer tax imposed on all property sales. Unless otherwise agreed, the buyer and seller would split this cost.
Stamp Tax is levied on transactions as follows: |
Less than or equal to $20,000……. 4%
$20,001 to $50,000 …………………. 6%
$50.000.01 to $100,000…………… 8%
Over $100,000.01 ………………….. 10%
Following to the implementation of VAT, the Bahamas Stamp Duty rate changed to a flat 2.5% with a 7.5% VAT on transactions above $100,000. First time homeowners who are exempt from Stamp Duty will also be exempt from VAT.
Below are some examples:
Property Value                Tax Pre Vat             Tax Post-VAT
$ 80,000                      8% Stamp Duty         2.5% (2.5% stamp duty + 0% VAT)
$250,000                     10% Stamp Duty        10% (2.5% stamp duty + 7.5% VAT)
$500,000 (first home owner)    0% Stamp Duty         0% (0% stamp duty +0% VAT)
For more information on Bahamas stamp tax on Harbour Island real estate transactions contact the Bahamas Taxpayers Services help desk by calling 1 242-225 7280 or email taxinquiries@bahamas.gov.bs.
Or you can write to:
Department of Inland Revenue
Central Revenue Administration
Value Added Tax Unit
P. O. Box N-13
Nassau, N.P.
Bahamas