Recent amendments to the Real Property Tax Act and the International Persons Landholding Act, gazetted in July 2026, introduce revised tax rates, valuation methodologies, and filing obligations specifically targeting non-Bahamian residential property owners. These changes respond to escalating foreign investment in the Bahamian real estate market and aim to ensure equitable tax contribution while maintaining the jurisdiction’s attractiveness for high-net-worth individuals. The amendments apply retrospectively to the 2026 tax year, with the first revised assessments issued in August 2026.
Key Takeaways
- Tiered Rate Structure for Non-Residents: Owner-occupied properties held by non-Bahamians now attract a progressive rate starting at 0.75% on the first BSD 500,000 of assessed value, rising to 1.5% on amounts exceeding BSD 5 million. This replaces the previous flat 1% rate and significantly increases liability for luxury holdings.
- Mandatory Annual Declaration via OTB: All non-Bahamian owners must file an Annual Property Tax Declaration through the One Tax Bahamas platform by 31 March each year, declaring occupancy status, rental income, and any changes in beneficial ownership. Failure to file triggers a 10% penalty on the assessed tax and may restrict the ability to transfer title.
- Valuation Review Mechanism: The amendments establish an independent Valuation Tribunal to hear appeals against assessed values. Non-resident owners have 30 days from service of the assessment notice to lodge an appeal, supported by a certified appraisal. The Tribunal’s determination is binding on both parties for the current and subsequent two tax years.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement