Guide for Canadians Buying Property in the Bahamas

The Bahamas are the perfect private paradise and homeowner's dream. Discover how to buy a slice of paradise with your name on it.

The Caribbean has a reputation for having a naturally stunning landscape throughout. Still, some countries like the Bahamas take the cake and more than live up to the reputation. For instance, Nations Online¹ describes the Bahamas as a “tourist's wet dream.”

This small island nation is an unmatched destination for Canadians looking to buy property in the Caribbean. Whether you wish to purchase a primary residence to escape the cold months or a rental property to cash in on the tourism popularity, you'll need to understand how the process works first.

Can a Canadian Buy Property in the Bahamas? 

Yes, foreigners from Canada can buy property in the Bahamas. There are no restrictions on foreign property buyers, so you can enjoy the same rights and privileges as Bahamian citizens, such as being the proud owner of beautiful beachfront property.

Generally speaking, no permits or licenses are necessary when purchasing property in the Bahamas. However, a special license or permit may be required for property over two acres if you intend to rent it out or use it for commercial development. The Government of The Bahamas welcomes foreign nationals, including Canadians, who want to invest in its beautiful country.

Is the Bahamas a good destination for retirement?

The Bahamas is an ideal retirement destination for Canadians, offering a warm climate, stunning beaches, and a favourable tax environment with no income, capital gains, or inheritance taxes. Its proximity to North America makes it easy to stay connected with family, and as an English-speaking country, communication is seamless. The Bahamas provides various residency options, including fast-tracked permanent residency for property buyers. With a relaxed lifestyle, vibrant expat community, and access to quality healthcare in key locations, the Bahamas offers a high quality of life, making it a top choice for retirees seeking a tropical paradise.

Why buy property in the Bahamas as a Canadian? 

The Bahamas, an enchanting Caribbean archipelago located in the northwestern West Indies, lies southeast of Florida and north of Cuba. Comprised of over 700 islands and islets, along with more than 2,000 cays (coral reefs), the Bahamas offers a diverse landscape and a variety of real estate options for Canadian buyers. Here are the key benefits of purchasing property in the Bahamas:

Diverse real estate market

The Bahamas offers a wide range of real estate options to suit different tastes and budgets. Whether you're looking for a cozy beach cottage, a luxurious waterfront villa, a contemporary condominium, or even a private island, the Bahamas has something for every buyer. Canadian investors will be pleased to know that they enjoy the same real estate rights as Bahamian citizens, making the property-buying process straightforward and welcoming.

Breathtaking scenery

For Canadians dreaming of owning property in paradise, the Bahamas delivers stunning natural beauty. From white-sand beaches to soft pink shores, crystal-clear turquoise waters, and picturesque ocean views, the scenery is nothing short of spectacular. Buying a home in the Bahamas means waking up to some of the world’s most beautiful landscapes every day.

Attractive tax benefits

One of the biggest draws for Canadian property buyers is the Bahamas’ favourable tax environment. The country is considered a tax haven, offering freedom from income tax, value-added tax (VAT), inheritance tax, and capital gains tax. This makes it an appealing destination for those looking to optimize their financial position while owning a vacation home or investment property.

Income generation potential

With its thriving tourism industry, the Bahamas presents excellent opportunities for property investors. The islands attract millions of visitors each year, thanks to their relaxed atmosphere, beautiful beaches, and vibrant culture. As a property owner, you can generate substantial income by renting out your home to tourists, particularly during the high season.

Pathway to residency

Purchasing real estate in the Bahamas can also provide a pathway to permanent residency. If you decide to plant roots and embrace the laid-back Bahamian lifestyle, owning property can fast-track your application for permanent residency, making it easier to enjoy the benefits of living in this tropical paradise.

Safe investment climate and accessibility

The Bahamas has a stable and well-regulated property market, making it a safe investment destination for Canadians. Additionally, the country’s proximity to North America, combined with short, direct international flights from Canada to major Bahamian airports, makes it an easily accessible location for vacationers, retirees, or investors.

Best places to buy a property in the Bahamas 

The Bahamas is home to a wide variety of islands, each offering unique real estate opportunities. Whether you're looking for a luxury beachfront villa, a quiet retirement home, or a property with rental income potential, here are some of the best places to consider when buying property in the Bahamas:

1. Nassau (New Providence Island)

Nassau, the capital of the Bahamas, is the most developed and populated city, located on New Providence Island. It offers a range of properties, from upscale waterfront homes to more affordable condos and apartments. Nassau is ideal for those seeking a vibrant city with a mix of culture, shopping, dining, and entertainment, along with easy access to beaches. It’s also home to international schools, making it appealing for families. Being the economic hub, rental demand is strong, making it a great spot for investors.

2. Paradise Island

Connected to Nassau by bridges, Paradise Island is famous for its luxury resorts, including the iconic Atlantis Resort. This small but upscale island is a prime location for high-end properties. If you’re looking for luxury real estate, Paradise Island offers prestigious waterfront homes and condos with stunning views. The island’s world-class amenities, golf courses, marinas, and beaches make it highly desirable for vacation homes or investments in the luxury rental market.

3. Exumas

The Exumas are a chain of 365 islands and cays known for their pristine, secluded beaches and sapphire-blue waters. This area is perfect for those seeking tranquillity and privacy. Exumas offers some of the most beautiful natural scenery in the Bahamas, making it ideal for buyers looking for vacation homes or private retreats. Properties range from beachfront homes to private islands, and there’s potential for rental income from eco-tourism.

4. Abaco Islands

The Abaco Islands, located in the northern Bahamas, are known for their relaxed atmosphere, boating culture, and beautiful beaches. It’s a favourite among ex-pats and second-home buyers. Abaco Islands offers a mix of residential properties, from beachfront homes to inland estates. The islands are popular with sailors and boaters due to the excellent marinas and sailing conditions. This area also has a strong expat community, making it appealing for Canadians looking to settle part-time or long-term.

5. Grand Bahama Island

Grand Bahama Island is known for its natural beauty, national parks, and growing real estate market. It’s one of the larger islands and has a more laid-back feel compared to Nassau. Grand Bahama offers more affordable property options compared to other tourist-heavy areas, making it attractive for budget-conscious buyers. The island’s proximity to Florida makes it convenient for travel, and its beautiful beaches and relaxed lifestyle make it a great spot for both vacation homes and long-term residences.

6. Eleuthera

Eleuthera is a long, narrow island famous for its pink sand beaches and laid-back atmosphere. It’s a quieter, less developed alternative to Nassau or Paradise Island. Eleuthera offers an escape from the crowds and is ideal for buyers seeking a peaceful, off-the-beaten-path lifestyle. The island has plenty of beachfront properties and vacation homes, with good potential for short-term rentals, given its appeal to travellers looking for quiet retreats.

7. Bimini

Bimini, the westernmost island group of the Bahamas, is the closest to the U.S., located just 50 miles from Florida. It’s popular among boaters and sport fishermen. Bimini’s proximity to the U.S. makes it easily accessible, and its marine life attracts fishing enthusiasts and tourists. The island offers a mix of affordable condos, beach homes, and luxury resorts, with strong potential for rental income from tourists.

How to buy property in the Bahamas as a Canadian? 

Buying property in the Bahamas as a Canadian is a relatively straightforward process, thanks to the country’s welcoming policies toward foreign investors. Here’s a step-by-step guide to help you navigate the process:

Step 1 - Research the market and choose a location

Before making any decisions, take the time to research the Bahamian property market. Decide which island or location best suits your needs, whether you're looking for a luxury beachfront villa, an investment property, or a private island retreat. Popular areas for Canadian buyers include Nassau, Paradise Island, Exumas, and Abaco Islands.

Step 2 - Hire a local real estate agent

It’s important to work with a reputable Bahamian real estate agent who is familiar with local property laws and can help you find suitable properties. A licensed agent can guide you through the process, assist in negotiations, and ensure all paperwork is in order.

Step 3 - Conduct due diligence

Once you’ve found a property you’re interested in, it's essential to conduct due diligence. This includes verifying the property’s title, checking for any liens or encumbrances, and confirming that all permits and approvals are in place. Hiring a Bahamian lawyer who specializes in real estate can help you navigate this process and ensure everything is legitimate.

Step 4 - Make an offer and sign the sales agreement

Once due diligence is complete, you can make an offer on the property. If the seller accepts your offer, both parties will sign a sales agreement, which is a legally binding contract. A deposit, typically 10% of the purchase price, will be required at this stage to secure the property.

Step 5 - Obtain necessary permits (if applicable)

In most cases, Canadians can buy property in the Bahamas without restrictions. However, if the property is larger than five acres, being purchased for commercial purposes, or intended for development, you will need to apply for a government permit. Your real estate agent or lawyer can help guide you through the permit application process if necessary.

Step 7 - Complete the sale and register the property

Once all permits, taxes, and fees are settled, you can proceed with the final step—completing the sale. At this point, the remaining balance of the purchase price is paid, and the property is officially transferred to you. Your lawyer will then register the property with the Bahamas Registrar General's office, ensuring the title is properly transferred into your name.

Step 8 - Consider ongoing costs

After purchasing property, you will need to budget for ongoing costs such as property maintenance, insurance, and property taxes. Fortunately, property taxes in the Bahamas are relatively low, especially compared to Canada.

Step 9 - Explore residency options

If you plan to live in the Bahamas for an extended period or are considering a move, purchasing property can help you qualify for permanent residency. While buying property does not automatically grant residency, purchasing a home worth more than $500,000 can fast-track your application for permanent residency. A real estate lawyer can help you explore this option further.

Fees and taxes 

When buying property in the Bahamas as a Canadian, paying your dues tax- and fee-wise is essential. The list includes registration fees, stamp duty, legal fees, and your real estate agent’s fees. Make sure you double-confirm with your sales agent and lawyer so you have everything covered.

• Stamp duty: This is a government tax on property transactions. It ranges from 2.5% to 10% of the property’s value, depending on the purchase price.
• Legal fees: You’ll need to hire a Bahamian lawyer to manage the legal aspects of the purchase. Legal fees are typically around 2.5% of the purchase price.
• Real estate agent fees: In the Bahamas, the seller usually pays the real estate agent’s commission, which is typically 6% of the sale price for developed properties and 10% for undeveloped land.

How the exchange rate comes into play?

The Commonwealth of The Bahamas uses the Bahamian Dollar (BSD), which is pegged to the US Dollar 1:1. Hence, the US currency is accepted for real estate transactions all over the Bahamas, meaning you'll have to convert Canadian dollars to US dollars. This is where the USD/CAD exchange rate comes into play. When this exchange rate is less than competitive, you incur higher costs, especially on large payments, such as a property purchase.

Therefore, to keep your costs low, finding a more cost-effective way to transfer US dollars to a Bahamian bank account is crucial. You can use the MTFX currency rate calculator to check the exchange rate before you transfer Canadian dollars to US dollars.

Where to find the best CAD to USD exchange rates? 

Changing Canadian dollars to US dollars is a requirement if you're buying Bahamas real estate. Finding the best exchange rates helps you make the most of your money. If you're wondering where to find the right foreign exchange service, you can start by skipping your bank. Banks may seem convenient, but you end up overpaying because of poor exchange rates and expensive fees. In contrast, using a foreign exchange specialist service, such as MTFX, is one of the most cost-effective and efficient ways to convert CAD to USD. 

A foreign exchange service like MTFX offers rates 3-5% lower than the banks because of its high volume and specialist operations. This means you can unlock savings of up to $5,000 for every $100,000 you transfer.

Pay online without going to the bank 

With MTFX, you not only get to save money with each transfer, but you also save time. The MTFX secure online platform is accessible 24/7, so you can trade many trips to the bank for a few clicks in the comfort of your home or office.  

Transferring money online also eliminates the risk of handling large sums of cash and gives you more control over the process. With an MTFX account, you can enjoy easy and efficient transfers that reflect these tech-savvy times. You can also set up USD to CAD rate alert so you can transfer money at the rate you want.

Invest more in your property with MTFX exchange rates 

When buying property abroad, every dollar counts. As a foreign exchange specialist, MTFX can help you maximize your investment by offering competitive exchange rates and low fees, ensuring you get the most value when transferring funds. Here’s how MTFX adds more value to your property purchase:

• Bank-beating exchange rates: MTFX consistently offers better exchange rates than traditional banks, allowing you to save more on your currency conversions.
• Low transfer fees: By minimizing fees, MTFX ensures that more of your money goes towards your property, not unnecessary costs.
• Speedy turnaround times: With transfers completed in as little as 24-48 hours or even the same day, MTFX guarantees your payments arrive on time.
• Expert FX tools: MTFX provides advanced tools like currency rate alerts to help you monitor the market and lock in the best rates when they become available.
• Tailored guidance: Receive personalized advice from experienced foreign exchange specialists to help you navigate the complexities of international payments, ensuring you make the most of your property investment.

Register your account with MTFX to send money from Canada to any destination bank account in the Bahamas today!

FAQs 

1. Can foreigners buy property in the Bahamas? 

Yes, foreigners can buy property in the Bahamas without restrictions. The Government of the Bahamas has an open-door policy for overseas buyers looking to invest in the country.

2. Can I buy beach property in the Bahamas as a Canadian?

Yes, Canadians can buy beach property in the Bahamas without restrictions. The Bahamas is very open to foreign investors, and Canadians enjoy the same real estate rights as Bahamian citizens. However, if the property exceeds five acres or is for commercial purposes, you may need to apply for a government permit.

3. What should I consider when buying property in the Bahamas? 

To make a wise, informed decision, be sure to consider essential factors like tax obligations, quality of infrastructure and healthcare, weather concerns, and real estate forecasts. 

4. How can I send money overseas to buy property in the Bahamas? 

MTFX lets you pay for your property purchase without going to the bank. You can open an account in less than five minutes, convert currency, and send money to a bank account in the Bahamas. It’s quick, easy, and cost-effective, plus you get expert guidance when needed to ensure a smooth transaction.

5. Are there any restrictions on buying, selling, or owning property in the Bahamas?

No, there are no restrictions on buying, selling, or owning a property in the Bahamas. Foreigners may acquire up to five acres of residential property in the Bahamas without needing prior government approval.

6. What is the process for buying property in the Bahamas as a Canadian?

The process is relatively straightforward. It involves finding a reputable real estate agent, conducting due diligence with a Bahamian lawyer, making an offer, paying a deposit, completing legal requirements, and registering the property once the purchase is finalized.

7. Is living in the Bahamas as a Canadian easy to manage?

Yes, many Canadians find living in the Bahamas quite easy. The country is welcoming to ex-pats, English is the official language, and the laid-back lifestyle combined with a favourable tax environment makes it an attractive place to live. Canadians can apply for residency if they decide to stay long-term.

8. Can buying property in the Bahamas qualify Canadians for residency?

Yes, purchasing property valued at over $500,000 can qualify you for permanent residency in the Bahamas. Higher-value properties may also fast-track your application. For investments under $500,000, a homeowner’s permit is also available for long-term stays.

9. Is beach property in the Bahamas a good investment?

Yes, beach properties in the Bahamas are highly desirable and tend to hold or increase in value over time. The thriving tourism industry also presents opportunities for rental income, making it an excellent investment for vacation homes or rental properties.

10. What should I consider when buying beachfront property in the Bahamas?

When buying beachfront property, consider proximity to amenities, potential rental income, maintenance costs (as coastal properties require more upkeep), and hurricane preparedness. It’s also essential to work with a local real estate agent who understands the nuances of the Bahamian property market.

11. What is the cost of living in the Bahamas compared to Canada?

The cost of living in the Bahamas can be higher than in Canada, particularly when it comes to imported goods. However, the lack of income tax, property tax on specific homes, and a favourable financial climate help offset some of these costs. Everyday expenses like food and utilities may be more expensive, but living by the beach in a tropical paradise can be worth it.