Real Property Tax - The Bahamas Customs Department

Real Property Tax Exemptions

Real Property Tax (RPT) assessments for the new tax year will be issued to property owners within the SERZ  based on the pre-Dorian value.   

Please note: Bahamians on the Family Islands are exempt from RPT. 

Real Property Tax assessments will be undertaken on or before October 31, 2019 for the year 2020. Your declaration in this section will be treated as a “declaration of status” requiring the property owner to declare the status of the property.

UPDATE- The Disaster Reconstruction Authority “Special Economic Recovery Zone (SERZ) Relief” Order, 2019, has been extended until June 2021, for select key items. 

Click here for information about the extension.

 

Process for RPT Exemption:

  1. Property owners should declare the present value and estimated damage to property.  Please indicate as appropriate:
    1. Not impacted, the assessed value is correct
    2. Not impacted, but the assessed value is incorrect
    3. Slightly damaged (assessed value estimated has decreased more than 25 per cent, but less than 75 per cent)
    4. Destroyed (assessed value estimated has decreased by an amount greater than 75 per cent of assessed value)  
  2. Request a reassessment based on the current value of the property

Exemption Policies:

  1. No exemptions on vacant land or undeveloped property
  2. Property must be habitable by October 2020
  3. RPT exemptions are available for a maximum of three years (2020, 21, 22) to eligible property owners 

Eligibility for RPT Three Year Exemption: 

Property owner must provide proof that the repairs were carried out and or prove occupancy by October 2020 

 

Real Estate Sales

Within the SERZ a VAT credit of up to 50% will be issued on the sale of qualifying real property for a period beginning December 4, 2019 and ending June 30, 2020.

 

VAT DISCOUNT ON REAL PROPERTY PURCHASES

VALUE OF

CONSIDERATION FROM:

 VALUE OF

CONSIDERATION TO

 VAT

 VALUE

 DISCOUNT GRANTED

CONDITIONALLY
Zero $100,000 Up to $2,500 50% Max $1,250
$100,001 $250,000 $1,000 to $25,000 35% Max $8,750
$250,001 $500,000 $25,001 to $50,000 20% Max $10,000
$500,001 $1,000,000 $50,001 to $100,000 15% Max $15,000

 

Criteria to qualify:

Vacant Land: Purchaser is required to provide plans that he/she intends to undertake material commercial or residential development of the property  

Developed Property:

  • Purchaser is required to provide evidence that the property acquired is in a fully habitable condition
  • Provide plans for the immediate repair or refurbishment of properties that are not in a habitable condition

Please note in order to maintain VAT Credit, the qualifying development, repair or development work must commence within 75 days of the close of sale. Further, the development and repairs of the property must be followed through to scheduled completion. Otherwise, the full VAT amount becomes payable. 

Process: The conveyance will take place before any structural plans are in place or work can commence.  The VAT adjustment must consequently be predicted on a promise or undertaking by the purchaser.