However, the VAT Comptroller has clarified this situation by indicating that while the VAT Rule states that the purchaser will probably be invoiced for the VAT, the VAT Rule does not stipulate how a vendor and purchaser shall determine to share the cost. The VAT Rule paragraph 31 states that the VAT tax invoice will be issued to the purchaser, which has led to some perception out there that the purchaser is solely accountable for the VAT at 7.5% and that the vendor is solely accountable for the Stamp Obligation (lowering the vendor’s tax burden). Typically stamp responsibility was split (50/50) between the vendor. This clarification means that the total tax break up of stamp responsibility and VAT can still be maintained.
Once that is accomplished, the 2.5% Stamp Responsibility is paid to the general public Treasury. 2.5% when the purchase worth is underneath $100,000? 10% when the acquisition value exceeds $100,000. Where purchase financing is required, it’s customary for the sale agreement to be made topic to a situation precedent for financing to be secured within a reasonable period before closing. The title should be deduced by the vendor bahamas appraisers for not more than 30 years, or the title must, in any other case, commence with a grant or lease by the Crown or a certificate of title granted by the courtroom by the provisions of the Quieting Titles Act, whichever period is shorter.
There are numerous local actual estate companies (some are affiliated with worldwide brokerage homes) that have been in operation for many years and can provide a wealth of information on land purchases and rentals, property listings, and advertising and marketing. A second house within the Bahamas has been a highly sought-after commodity for international consumers. The ownership of land by non-Bahamians is regulated by the International Persons Landholding Act. It’s also frequent for land to be held in the name of an organization or by a household belief for estate planning purposes. Where a non-Bahamian needs to buy a house or condominium to be used as a household residence or undeveloped land not exceeding two acres in size to develop a family home, the acquisition should be registered with the Bahamas Investments Board after closing.
