The Bahamas Government is set to remove Value-Added Tax (VAT) from all real estate sales.
The Bahamas Government has announced that it is proposing a change in its real estate taxation policy which will EXEMPT real estate sales from Value-Added Tax (VAT). The policy change was outlined in the 2018-2019 National Budget proposal released by the Ministry of Finance.
While the government is proposing to increase the Value-Added Tax rate from 7.5 percent (which was implemented January 1, 2015) to 12 percent come July 1, 2018, real estate sales will be EXEMPT.
The government is set to implement: “A wholesale change in the taxation policy for real estate that exempts Real Estate from VAT, replacing the tax on same with a simpler stamp tax formula: a rate of 2.5 per cent stamp tax on transaction values up to $100,000 and a rate of 10 per cent above $100,000.”
How do you think this could impact the real estate sector?
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