International homebuyers in the market for Bahamas real estate have a lot to consider before making a purchase. It will be your responsibility to ensure that you and your family can afford a move for work. We’ve listed some of the high costs that you’ll encounter at this location, in addition to some other expenses you may encounter daily. In this guide, you will learn about living in the Bahamas cost.
Living in the Bahamas cost
Cost of Home Prices in the Bahamas
Depending on individual or family needs, Bahamas home prices can vary drastically. There are various factors to consider, such as square footage, the number of bedrooms, the location, and amenities. We have homes listed for less than $200,000 and upwards of $5,000,000 on our site to give you an idea of the range. Real estate in the Bahamas reflects the melting pot of culture and people from all walks of life on the islands. If you want to rent a condo on the beach, or if you wish to purchase your island, there is something for everyone.
Cost of apartments in the Bahamas
An apartment or condominium in the Bahamas with 900 square feet can rent for around $1697 per month on average, but prices may vary based on the location. In many cases, apartments come furnished, which is very convenient for ex-pats, as coordinating the shipment of furniture and other belongings before a move is eliminated.
Cost of utilities in the Bahamas
Utility costs here are about 80% higher than in the United States for electricity and other standard utilities. Among other things, two people living in a 900 square foot apartment would pay about $355 per month for utilities (electricity, water). Your costs increase when you use your air conditioning 24/7 or include cable/internet.
Bahamas Tax Breaks and Advantages
By taking advantage of the tax breaks and benefits the Bahamas offers, you will be able to reduce your living costs. There is no income tax, capital gains tax, or corporate tax in the Bahamas. The stamp tax ranges from 2.5 to 10%. Investment properties are subject to property tax based on assessed value.
The tax rate is 1% for investment properties worth less than $500,000 in Bahamian currency. For homes worth more than $500,000, the tax rate is 2%. Owner-occupied properties are subject to a $60,000 annual property tax cap.
Cost to buy property in the Bahamas
There are a few fees involved when buying a property here, and all of them are important to know if you are interested in buying real estate in the Bahamas. For properties valued at less than $100,000, the Transfer Tax (VAT) is 2.5% of the property value. If the property is valued at over $100,000, 10% of its value will be deducted.
Both parties pay their respective legal fees and 12% VAT on those fees. In most cases, the legal cost for a party is 2.5% of the purchase price. Commission for real estate, Brokers charge 6% of the purchase price for developed land and 10% for undeveloped land.
Cost for residency in the Bahamas
For an annual fee of $100, ex-pats who have purchased a property with a value of over $250,000 can obtain a residency permit which must be renewed every year. International buyers must purchase a property valued at $750,000 before applying for a Permanent Residency.
Cost of transportation in the Bahamas
In case you already have a car at your current location, you can ship it to the Bahamas, so it can arrive once you arrive. The island also offers to buy a used one or have one imported (but you will have to pay duties). Taxis and buses are the main modes of transportation. Bikes are popular among locals.
Cost of food in the Bahamas
In the Bahamas, food costs are comparable to those in the United States. Some of the most commonly purchased items are:
- A gallon of whole milk costs $3.93
- A dozen eggs cost $3
- Each pound of chicken breast costs $6
- A hamburger meal in a fast-food establishment costs $12
Despite the high cost of living, real estate in the Bahamas is truly extraordinary. Few places in the world offer everything our islands have to offer. The Bahamas is a great place to invest in real estate if your plans include living here or vacationing there.
Activities to do in Grand Bahamas
When Christopher Columbus first visited the Bahamas during his first trip to America in 1492, the Bahamas gained international attention. The Bahamas were eventually taken over by Britain and were used by pirates as a haven for a while. These are just some of the fascinating historical events that make the Bahamas so enjoyable, and Grand Bahamas galleries offer a wealth of additional information.
It’s also filled with all kinds of natural wonders to get excited about in Grand Bahamas. To begin with, there is the Lucayan National Park, which is the most popular park on the island and one of the largest underwater cave systems on earth. Gold Rock Beach is located in the park’s area, and it is renowned for its clear, blue water and soft white sand.
There is a tropical garden not far away, at the edge of Freeport, where you can explore all kinds of rare plants and animals. Additionally, two national parks and many annual and seasonal events can be found in the area, such as the Grand Bahamas Regatta, the Sweetings Cay Heritage Festival, and the High Rock Seafest. There are also many outdoor activities available on the island. For example, you can swim with dolphins and sharks, go diving snorkeling, go on adrenaline-pumping tours, and go on gastro tours.
Interesting facts about Living in the Bahamas
- The Bahamas is an archipelago of over 700 islands, but only about 30 are inhabited.
- The official language is English, but many Bahamians also speak Creole.
- The currency is the Bahamian dollar, which is pegged to the US dollar at a 1:1 ratio.
- The Bahamas is known for its beautiful beaches and turquoise waters, making it a popular tourist destination.
- The country has a rich cultural heritage, with influences from Africa, Europe, and the Caribbean.
- The national dish is conch, a type of sea snail harvested and cooked in various ways.
- The Bahamas has a vibrant music scene, with genres like Junkanoo, Rake-and-Scrape, and Calypso being popular.
- The capital city, Nassau, is located on New Providence Island and is home to over 70% of the country’s population.
- The Bahamas is a popular destination for celebrity vacations, with many high-profile figures owning private islands and homes in the country.
- The country has a strong sporting culture, with popular activities including sailing, fishing, and golf.