
Property in the Bahamas combines lifestyle value with strong investment potential, supported by demand and favourable tax conditions
Interest in Bahamian property continues to grow, driven by its lifestyle appeal, investor confidence, and clear ownership rules. Michelle Martinborough, Sales Associate at Bahamas Realty Limited, explains: “When it comes to real estate that blends lifestyle with long-term value, The Bahamas remains a top choice for savvy investors and second-home seekers across the globe.”
Weather and access are key. “With over 300 days of sunshine each year, a warm tropical climate, and some of the most stunning beaches in the world, The Bahamas is as close to postcard perfect as it gets. Year-round outdoor living isn’t just possible, it’s encouraged.” For overseas buyers, convenience matters. “With several daily direct international flights from major cities like Miami, New York, Atlanta, London, and Toronto, reaching the Bahamian islands is both easy and efficient.”
Michelle highlights how lifestyle factors work alongside luxury amenities. “Beyond the natural beauty, The Bahamas delivers world-class amenities to match. Residents and visitors enjoy luxurious resorts, vibrant casinos, championship golf courses designed by legends, and a growing culinary scene that includes Michelin worthy restaurants and celebrity chef outposts.” Whether it’s relaxation or activity, “you’ll find it here.”
Tax policy and legal clarity help seal the deal. “The Bahamas is a tax-neutral jurisdiction, meaning no income tax, no capital gains tax, no inheritance tax, and no corporate income tax. Property taxes are relatively low, and non-Bahamians can purchase property with minimal restrictions.” The country also offers a residency route for investors. “Economic permanent residency is also available to buyers investing $1 million or more, offering not only possible tax advantages but also the flexibility to live in The Bahamas full-time.”
Compared to other destinations, the legal framework is a major advantage. “The Bahamas stands out among island nations for offering a highly favourable environment for property ownership and real estate investment.” The ownership structure is especially important. “Property in The Bahamas is purchased freehold, meaning foreign buyers can own land outright with full title.”
There are added benefits for second-home owners too. “In addition to secure title ownership, The Bahamas offers a range of government-backed incentives that enhance the appeal for both investors and second-home owners.” One such incentive is the Hotel Encouragement Act, which “not only enables homeowners to generate rental income when the property is not in use but also includes savings on real property taxes and duties related to construction cost and furnishing.”
For many buyers, lifestyle flexibility is just as important as financial factors. “Permanent residency significantly enhances buyer interest in The Bahamas, particularly among high-net-worth individuals and lifestyle driven investors.” Michelle points out, “the ability to reside in the country for seasonal living or long-term relocation is a major factor in choosing where to invest.”
Demand for premium homes is strong on several islands. “The islands currently experiencing the highest demand for premium homes in The Bahamas are New Providence, Harbour Island, Eleuthera, Exuma, and Abaco.” Each attracts a different type of buyer. “New Providence, home to the capital city of Nassau, offers gated communities, luxury resorts, marinas, and easy access to international airports.” Harbour Island is popular for “its historic charm, famous pink sand beaches, and chic boutique lifestyle.” Eleuthera and Exuma suit those “seeking a more laid-back yet upscale island experience.” In Abaco, “its boating culture and family-friendly communities” are driving renewed interest.
“What makes The Bahamas particularly unique is that each island offers a different atmosphere, pace, and experience.”
At the top end of the market, regulations matter. “At the upper end of the market, clarity, stability, and long-term value are essential and The Bahamas delivers on all three.” Michelle says, “local planning regulations are straightforward and investor-friendly,” and emphasises again, “properties in The Bahamas are purchased freehold.”
Tax policy continues to work in favour of buyers. “Property taxes are comparatively low, and incentive programs like the Hotel Encouragement Act allow luxury homeowners to place their properties in a rental pool, generating income while also benefiting from tax concessions.”
Local expertise is a key part of the equation. “What also sets The Bahamas apart is the availability of skilled local tradespeople and professional services. Whether building from the ground up or restoring a historic property, buyers have access to a deep pool of qualified contractors, architects, and legal professionals who understand the unique demands of luxury real estate.”
Developers are also adjusting to meet global standards. “Property developers in The Bahamas are increasingly aligning their projects with global standards for design, technology, and sustainability.” That means “clean, modern architecture, expansive indoor-outdoor living spaces, and elevated finishes that reflect both global trends and Bahamian charm.”
“Smart home systems, integrated security, solar-ready infrastructure, and high-speed connectivity are becoming standard offerings in premium properties.” And crucially, “sustainability is no longer a buzzword – it’s a requirement.”
Michelle sums up the draw of the market clearly: “The Bahamas is more than just a vacation destination, it is a strategic, flexible, and attractive real estate market that continues to draw buyers from around the world.”