The Bahamian government raised the stamp duty of homes priced over $100,000 by 2% two years ago and experts believe the increase had a noticeably negative effect on sales. That’s why the government has chosen to eliminate the increase and the Bahamas Real Estate Association is calling for an across-the-board property tax decrease of an additional 2%. Local realtors hope the recent reduction and calls for further action will reinvigorate the property market by attracting more attention from international buyers. For more on this continue reading the following article from Property Wire.
The government in the Bahamas has reduced stamp duty for properties worth over $100,000 by 2%.
The moves comes two years after it increased the tax by 2% which many believe resulted in a slow down in sales.
‘There was a significant outcry from the Bahamas real estate community as well as the general public who wondered how the government could take an already fragile economy and increase the cost of settling real estate transactions,’ said Zack Bonczek, of RE/MAX Bahamas Real Estate.
‘Although the increase was small and the upside of investing in a downward adjusted market big, it certainly didn’t stimulate any positive movement in the Bahamas real estate sector,’ he added.
The Bahamas Real Estate Association has recommended that the property tax be reduced by 2% across the board.
Now in an effort to resuscitate the Bahamas real estate sector and encourage more local and foreign buyers into the fold, the government has reduced the Stamp Duty by 2% for purchases over $100,000.
‘This is big news for the real estate sector and the economy in general. Buyers are now feeling that the dream of owning their own piece of paradise is within reach,’ said Bonczek.
He believes that the Bahamas real estate market is poised for steady growth in the next few years with the completion of the New Providence Road Development Project, the Lynden Pindling International Airport (LPIA), and Bahamar, The New Riviera of The Caribbean, continuing in its quest to be the next mega resort in the region.
This article was republished with permission from Property Wire.