Real Estate in The Bahamas
The Bahamian government in 1993 repealed the Immovable Property (Acquisition By Foreign Persons) Act, which required foreigners to obtain approval from the National Economic Council to purchase real property in the country, and replaced it with the International Persons Landholding Act.
International Persons Real Estate Landholding Act
Under this law, approval is granted automatically for non-Bahamians to purchase residential property of less than five acres on any single island in The Bahamas, except where the property constitutes over 50 percent of the land area of a cay (small island) or involves ownership of an airport or marina.
Real Estate Property Tax Exemption
The Bahamian government did this in the hopes that the legislation would stimulate the second home vacation home market and revive the once-vibrant real estate sector. The law also provides for a two-year real property tax exemption for foreign persons acquiring undeveloped land in The Bahamas for development purposes, provided that substantial development occurs during those two years.