Bahamas Real estate Law Amendments

AMENDMENTS TO THE REAL PROPERTY TAX ACT
The government has announced it will amend Bahamas real estate laws to reduce the property tax burden on certain properties and to encourage the development of foreign-owned vacant land.
The amendments are also geared to improve collections.
Government proposes to:
• Write off the outstanding surcharge on owner-occupied homes following an increase in the exemption level on homes to $100,000 in 1994 and, in 2004, on properties valued at or below $250,000.
All outstanding taxes are to be paid within six months from the date the Act is amended. After this, a surcharge will be applied at a rate of 5 per cent per year on outstanding balances;
• The three-rate structure on owner-occupied properties will be replaced by a two-rate structure: a rate of 1 per cent on properties valued up to $7.5 million over the exemption of $250,000 and, for properties in excess of $7.5 million, a rate of 0.25 per cent on the value in excess of $7.5 million;
• The tax on vacant foreign-owned real property valued up to $7,000 will be $100. Properties over $7,000 will pay a rate of 1.5 per cent;
• Bahamian owner occupied property will be automatically exempt. However, non-Bahamians would have to live in their homes for nine months of the previous year to qualify for an exemption.