Bahamas Investor Guide

Navigate the International Persons Landholding Act, stamp duty, VAT, and the path to Economic Permanent Residence

Updated May 22, 2026Intermediate14 min read

Rental yield
10.4%
Gross, indicative
Price growth
5.0%
Year on year · Jun 2026
Transfer tax
10.0%
Currency
BSD (pegged 1:1 to USD)
Population
412,000
Inflation
2.4%

Market Overview

The Bahamian economy is stabilising in 2026 with GDP growth of around 2.2% and inflation moderating to 2.4% as global supply chains normalise. Tourism continues to anchor the economy (over 50% of GDP including indirect effects), with cruise and stopover visitor numbers reaching record levels in 2024-2025. Financial services remain the second pillar. The BSD-USD peg eliminates currency risk for USD-denominated investors. Hurricane risk and insurance pricing pressure post-2024 storms are real medium-term headwinds for coastal real estate.

Country
Bahamas
Currency
BSD (pegged 1:1 to USD)
Population
412,000
GDP growth
2.2% (2026 forecast; typically 1.5-3.0%)
Inflation
2.4%

Key industries

  • Tourism & Hospitality
  • Financial Services & Offshore Banking
  • Real Estate & Construction
  • Maritime Shipping & Ship Registration
  • Aragonite Mining

Restrictions

International Persons Landholding Act (IPLA)

Open

Non-Bahamians can purchase property in The Bahamas with relatively few restrictions under the International Persons Landholding Act (IPLA) 1993. Properties under 5 acres for residential use generally do not require government approval; only registration of the conveyance is needed. Properties of 5+ acres, undeveloped land, or properties intended for commercial development require an IPLA Permit from the Bahamas Investment Authority.

  • Properties under 5 acres for personal residential use: registration only, no permit required
  • 5+ acres OR undeveloped land OR commercial use: IPLA Permit required
  • Permit applications go to the Bahamas Investment Authority (BIA)
  • As of 1 July 2025, IPLA Permits must be acted on within 180 days or extended (max 2 extensions of 180 days each)
  • Same stamp duty rate now applies to foreign and Bahamian buyers (the prior double-rate for non-residents was abolished)
  • Permit fees scale with property value; refer to BIA fee schedule

AML / KYC Requirements

Open

All real estate transactions are subject to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) requirements administered through licensed Bahamian attorneys and financial institutions. Source-of-funds documentation is mandatory for all buyers regardless of nationality. The Bahamas has implemented enhanced beneficial ownership reporting following its removal from the EU tax-cooperation grey list.

  • Buyers must engage a Bahamian attorney for AML/KYC compliance
  • Source of funds documentation required (typically 6-12 months of bank statements + employment/business income verification)
  • Beneficial ownership disclosure for corporate purchasers
  • Politically Exposed Person (PEP) screening
  • Stricter scrutiny for high-value transactions and certain source jurisdictions

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  • Taxes & Fees
  • Requirements
  • Purchase Steps
  • Property Types
  • Investment Drivers
  • Market Trends
  • Visa & Residency
  • Financing

Figures are indicative and subject to change. Regulations, taxes and market conditions vary by jurisdiction. Do your own due diligence and seek independent legal and financial advice.

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