Bahamas Property Ownership for Foreign Buyers

Dreaming about a place in the Bahamas where winter feels like summer and your days end with a breeze and ocean light? If you are an international buyer, you might also be wondering how ownership works, what permits you need, and how long it all takes. You are not alone. With the right plan and local counsel, buying in the Bahamas can be straightforward and rewarding. In this guide, you will learn the ownership options, approvals, steps, timelines, and cost categories to expect as a foreign buyer. Let’s dive in.

Ownership options in the Bahamas

Freehold (fee simple)

Freehold gives you full ownership of the land and any structures on it. As a foreign buyer, you can acquire freehold title, but most purchases require government permission before title registration is complete. This route offers maximum control and flexibility, subject to planning rules. Expect more detailed reviews and statutory fees compared to simpler structures.

Leasehold and long-term leases

In some settings, especially resort enclaves or where freehold sale is limited, long-term leases are common. Leases can be faster to secure than freehold, but terms vary widely. Review renewal provisions, transfer rights, and any use restrictions with your Bahamian attorney before you commit.

Condominiums and strata title

Condominiums are popular with non-residents. You own your unit and share common areas through a management association. Many condo developments are set up to facilitate foreign ownership, and some offer streamlined approval processes. You will have ongoing strata or HOA fees and potential special assessments, which should be factored into your budget.

Holding companies, trusts, and nominees

High-net-worth buyers often acquire through a Bahamian or offshore company or a trust for privacy and estate planning. These structures can simplify succession and transfers within families. Standard anti-money-laundering checks and beneficial-ownership disclosures apply, and permit requirements still need to be met.

Crown and restricted lands

Crown land, some agricultural parcels, and protected areas carry extra controls. In some cases, sale to foreigners is not permitted or requires special approval or leasing. Always confirm land class and zoning with the relevant authorities before proceeding.

Government approvals and permits

Alien Landholding Licence overview

The Bahamas regulates acquisitions by non-Bahamians through an approval process often referred to as an Alien Landholding Licence or similar permission. In most cases, you will need this approval before you can register title. Some condominium developments have project-level pre-approvals that can streamline buyer permits. Requirements vary by property and development.

What to prepare

Expect to submit the signed purchase contract, proof of identity, background information, and proof of funds. If you are buying through a company or trust, include relevant corporate or trust documentation. Application fees apply and are paid at submission.

Timing expectations

Processing times depend on the property type, value, and completeness of your file. Straightforward condominium purchases in pre-approved developments tend to move faster. More complex or high-value freehold acquisitions can take several months. Private island or Crown-related purchases often require more extensive review and longer time frames.

Costs and taxes to budget

At closing

While exact figures vary by deal and change over time, plan for these common items:

• Stamp duty or transfer tax on the conveyance document.
• Government permit or application fees for the alien landholding approval.
• Legal fees for purchaser’s counsel and often for vendor’s counsel.
• Title search, registration, and possible survey costs.
• Brokerage commission arrangements, typically handled by the seller, though practices vary.
• Bank charges for international transfers and AML/KYC compliance costs.
• Due diligence expenses, such as inspections where appropriate.

Local custom on who pays which cost can differ and is negotiable. Confirm responsibilities in your sale contract.

After closing

Once you own the property, build a budget for:

• Annual real property tax.
• Utilities, security, and property management.
• Condominium or strata fees and reserve contributions, if applicable.
• Insurance, including hurricane and windstorm coverage, and any mitigation requirements from your insurer.
• Any local community or municipal fees where applicable.

Purchase steps and timeline

Step-by-step flow

1. Identify the property and negotiate terms, often starting with a letter of intent.
2. Sign the sales contract, typically conditional on permits and due diligence.
3. Place the deposit into escrow per contract terms.
4. Conduct due diligence, including a title search, survey review, and checks for liens or encumbrances. For condos, review all association documents.
5. Apply for the necessary government approvals and pay application fees.
6. Arrange financing if needed. Many foreign buyers close in cash or use home-country financing. Local bank options exist but are less common for non-residents.
7. Close once approvals are granted and conditions are satisfied. Execute documents and pay statutory fees.
8. Complete post-closing registrations, set up utilities, enroll with any HOA, and calendar tax deadlines.

Typical timing

• Condominium purchases in pre-approved developments: often 6 to 12 weeks if documents and payments are ready.
• Freehold purchases requiring permits: commonly several months.
• Complex acquisitions, such as private islands or parcels involving Crown-related issues: can extend longer.

Delays usually stem from incomplete documentation, questions about source of funds, missing corporate records, environmental reviews, or unresolved title matters.

Financing, currency, and AML

Non-resident financing from local banks is available in some cases but is less common than cash purchases. If you do finance, expect different down payment and rate structures than in your home market. Plan ahead for currency conversion and international transfer timelines.

Large transfers are subject to AML and KYC checks. Your bank and attorney will ask for evidence of lawful source of funds. Having documents organized early helps keep permit and closing timelines on track.

Seasonal owner planning tips

Privacy and holding vehicles

Using a company or trust can help with privacy and estate planning. Coordinate early with your Bahamian attorney to understand how your structure interacts with permit filings and processing times. Be prepared to disclose beneficial ownership for AML purposes.

Insurance and climate risk

The Bahamas is hurricane exposed. Insurers may require mitigation measures like impact-rated windows and will often apply hurricane deductibles. Consider inspections and a maintenance plan if you will not be on island year-round.

Short-term rentals

Short-term vacation rentals are active in many islands, but local rules and community covenants can limit or regulate them. If you plan to rent, factor in licensing, tax registration, potential occupancy taxes, management fees, and added insurance.

Discreet transactions

High-net-worth buyers often prefer confidential showings and quiet negotiations. Work with an agent and attorney accustomed to confidential processes, while understanding that government approvals still require identity and background disclosure.

Your core advisory team

• Bahamian real estate attorney: essential for title work, permits, and registrations.
• Local real estate agent experienced with international buyers: helps navigate listings, norms, and discrete showings.
• Surveyor and planning authorities: confirm boundaries, zoning, and permitted uses.
• Tax and immigration advisors: coordinate cross-border tax and any residency planning.
• Banker or financial advisor: manage escrow, international transfers, and financing structures.

Quick buyer checklist

• Engage a Bahamian real estate attorney early.
• Confirm whether your target property or development is pre-approved for foreign ownership, or if an Alien Landholding Licence is required.
• Order a current title search and survey. For condos, obtain and review association documents.
• Prepare source-of-funds documentation for AML and permit filings.
• Budget for permit lead times, stamp duty, legal fees, and insurance.
• If you need discretion, agree on a confidential process and discuss holding-entity options, keeping disclosure requirements in mind.

Final thoughts

Owning in the Bahamas can be a rewarding blend of lifestyle and legacy. The key is to match the right ownership structure with a clear plan for approvals, timing, and long-term care of the property. With the right team, you can move from first conversation to closing with clarity and confidence.

If you would like curated introductions to trusted local attorneys, on-island professionals, and select properties, reach out to Peter Kempf International. Our advisory-first approach prioritizes discretion, clear next steps, and a smooth experience from offer to ownership.

FAQs

Do foreign buyers need a permit to buy property in the Bahamas?

• In most cases, yes. An Alien Landholding Licence or similar approval is typically required before title registration, though some condo developments have streamlined processes.

Does owning a Bahamas home grant residency?

• No. Property ownership and residency are separate. You need to apply for residence or work permits through the Immigration Department.

How long does a typical foreign buyer purchase take in the Bahamas?

• Condos in pre-approved projects can close in about 6 to 12 weeks, while freehold purchases requiring permits often take several months and complex island deals can take longer.

Can a foreign buyer purchase a private island in the Bahamas?

• Yes, but expect more extensive government review, added due diligence, and longer timelines compared to standard residential purchases.

What ongoing costs should I expect as a part-time owner in the Bahamas?

• Annual property taxes, utilities, management and security, condo or strata fees if applicable, and insurance including hurricane coverage and deductibles.

Is title insurance common in the Bahamas?

• Title insurance is less common. Risk is managed through attorney-led title searches, conveyancing, and registration. Always verify current availability with your attorney.