Costs of Selling a Property
Real Estate Commission Fees:
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 sale price
Improved property: 6% of the sale price
Business: 10 % of the sale price
10 % Value Added Tax (VAT) is charged on all goods and services. This includes legal work, real estate commissions, or appraisals.
Government Taxes (VAT on Conveyance) on the Transfer of Property effective July 1st, 2023
For Bahamian Individuals:
Under $100K = 2.5%
$100,001 -$300K = 4%
$300,000 -$500K = 6%
$500,001 -$700,000 = 8%
$700,001 -$1 Million = 9%
Over $1 Million = 10%
For a Non-Bahamian Citizen, a 10% Value Added Tax (VAT) is charged on the property value. The usual practice in The Bahamas is for the tax to be shared equally between buyer and seller unless otherwise agreed upon.
Bahamian Owned Companies:
Under $100K = 2.5%
Over $100,001 = 10%
For a Non-Bahamian owned company, a 10% Value Added Tax (VAT) is charged on the property value.
*For the transfer of Real Property, as of October 2022 all Conveyances must have a Real Property Tax assessment number included.
Legal Fees
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.
Listing Price
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.