H O R I Z O N S

The government of the Bahamas yesterday took a big leap in lowering taxes which we believe will be beneficial to the economy. There are a number of changes afoot that pertain to the real estate industry and will affect our clients and customers. These are in the property tax areas and stamp tax areas.

The changes are as follows.

The Cap on Property tax of $35,000 per annum for homes valued at over $5,000,000 will be removed

Import duties on construction materials be removed for the following islands

• Sweetings Cay and Water Cay (Grand Bahama);
• Grand Cay and Moores Island (Abaco);
• Current Island (Eleuthera);
• Andros;
• Cat Island;
• San Salvador;
• Rum Cay;
• Long Island;
• Crooked Island;
• Long Cay;
• Acklins;
• Ragged Island and Cays;
• Mayaguana; and
• Inagua

Home-owners will become eligible to benefit from the following additional revenue measures:

• exemption from the payment of Stamp Tax (a) applicants purchasing a lot zoned for residential development upon which he/she proposes to construct a primary dwelling place;

(b) applicants purchasing a newly constructed dwelling place; (c) applicants purchasing a dwelling unfit for occupation with the intention of occupying the dwelling upon completion of its renovation or (d) applicants purchasing an existing dwelling to serve as their primary residence.

• exemption from Stamp Tax on the transfer of a mortgage of a dwelling place from one financial institution to another, and exemption from stamp tax where the applicant seeks to consolidate debts by mortgaging a dwelling home up to a value of $500,000.

• First-time homeowners will benefit from an increase in the ceiling for exemption from real property taxes, from $250,000 to $500,000, for the first five years.

Property tax will be reduced to .75% down from 1% on properties valued at over $5,000,000

If you have any questions on how this will affect you please free to call me (john Christie at 242-322-1041) or any of our professional agents throughout the islands.