Official Eleuthera Harbour Island brings you more information on The Bahamas stamp duty tax.
All Harbour Island and Eleuthera real estate transactions are subject to the Government of Bahamas Stamp Duty tax which is a transfer tax imposed on all property sales. Unless otherwise agreed, the buyer and seller would split this cost.
Stamp Tax is levied on transactions as follows: |
Less than or equal to $20,000……. 4%
$20,001 to $50,000 …………………. 6%
$50.000.01 to $100,000…………… 8%
Over $100,000.01 ………………….. 10%
Following to the implementation of VAT, the Bahamas Stamp Duty rate changed to a flat 2.5% with a 7.5% VAT on transactions above $100,000. First time homeowners who are exempt from Stamp Duty will also be exempt from VAT.
Below are some examples:
Property Value Tax Pre Vat Tax Post-VAT
$ 80,000 8% Stamp Duty 2.5% (2.5% stamp duty + 0% VAT)
$250,000 10% Stamp Duty 10% (2.5% stamp duty + 7.5% VAT)
$500,000 (first home owner) 0% Stamp Duty 0% (0% stamp duty +0% VAT)
For more information on Bahamas stamp tax on Eleuthera and Harbour Island real estate transactions contact the Bahamas Taxpayers Services help desk by calling 1 242-225 7280 or email firstname.lastname@example.org.
Or you can write to:
Department of Inland Revenue
Central Revenue Administration
Value Added Tax Unit
P. O. Box N-13