HGC Investor's Guide Summer/Fall 2024

Few offshore tourism and investment hubs can match The Bahamas for its friendliness, natural beauty and top five draws of location – just 60 miles off the coast of South Florida; New York timezone; year-round temperate climate ranging from 70s F in winter to 90s F in summer; nearly 300 years of stable democracy; and more than 100,000 square miles of the clearest, bluest waters on earth. It is no wonder The Bahamas has been such a magnet for international visitors, investors and second-home buyers since 1922, when visionary and trailblazer Sir Harold G. Christie first opened up the islands and established H.G. Christie Ltd, (HGC) now the oldest, largest and most respected real estate firm in the country.

Along with his brother Frank Holmes Christie, CBE, Sir Harold developed some of The Bahamas’ most celebrated high-end real estate communities including Lyford Cay in New Providence, Windermere Island in Eleuthera, Great Harbour Cay in the Berry Islands, as well as

In 1936 Sir Harold facilitated travel and communication between The Bahamas and the rest of the world along with American investor Sir Harry Oakes, building the country’s first landing strip at Oakes Field and founding Bahamas Airways Limited.

Sir Harold also played a key role in a range of other important Bahamian institutions including Chairman of the Telecommunications Board, founding member of the Development Board, and President of the Bahamas Historical Society. Such accomplishments

HGChristie’s Head Office - 309 Bay Street, Nassau (1940s)

Sir Harold Christie, K.T., C.B.E. - Founder

Hawk’s Nest Cay and Pigeon Cay in Cat Island.

L-R: Sir Harold & Frank Christie

and accolades earned him a CBE in 1949 and a Knighthood in 1964. In 1978 William McP. (Peter) Christie, nephew and principal real estate attorney for Sir Harold, inherited the helm as President and was active in the company until his passing in February 2018 at the age of 88.

Peter’s son John Christie, a talented musician and song-writer who gave up life on the road in 1993, now leads the company as President. John has earned a reputation as the country’s premier realtor for private islands and luxury real estate. In 1997, Peter’s daughter, Cara Christie, also joined the company and plays a vital role as Vice President and specialist in the rental market.

John has expanded the company from just one office, three agents and two staff members in 1993, to ten offices, 60+ agents and approximately 20 staff members today. HGC now boasts offices in Lucaya, Grand Bahama; Elbow Cay and Marsh Harbour, Abaco; Governor’s Harbour and Harbour Island, Eleuthera; George Town, Exuma; Hamilton’s, Long Island; Old Fort Bay Town Centre and the Lyford Cay Shopping Plaza in New Providence; as well as its flagship office in central Nassau.

Under John’s leadership, the company has

won a range of accolades and awards including Best Real Estate Website in The Bahamas, Best Real Estate Agency in the Americas, and Best International Real Estate Agency.

2024 finds HGC celebrating over 100 years as well as being The Bahamas’ exclusive affiliate of Christie’s International Real Estate for more than 25 years. As we enjoy the fruits of our success, we look forward to our next century in real estate and continue to embrace interactive and social media platforms; in-house video production, virtual tours and professional photography services; sales team and service expansion, awards for The Bahamas and the Caribbean, and realtor of choice for leading firms and investors from around the world.

Yet it is not just business flair that keeps celebrities, high net worth and discerning clients returning. It is a genuine care for the people being served, a company-wide enthusiasm entrenched in local knowledge and an honest love of The Bahamas which drives Sir Harold’s legacy forward. With these admirable core values and commitments in place it is no wonder that HGC has become “The Trusted Authority in Bahamas Real Estate” for over 100 years.

Cara Christie John Christie

Peter Christie

Peter & John Christie

THE BAHAMAS

The Bahamas is truly a paradise for investors. A skilled professional workforce, stable government and economy, sound legal framework, modern infrastructure, proximity to key markets and investment incentive policies combine to create a fertile investment climate.

LOCATION

The 100,000 square mile archipelago of more than 700 islands and 200 cays, The Bahamas begins just 60 miles off South Florida.

ECONOMIC ENVIRONMENT

The Bahamas offers a variety of unique characteristics, including a low-tax environment, that make it an ideal climate for business investment, growth and evolution. While tourism and financial services provide a strong economic backbone, new investment opportunities are now unfolding in several areas such as e-business, manufacturing, light industry, land development and transshipment.

GOVERNMENT

With a democratic tradition of nearly 300 years, The Bahamas takes pride in its political and social stability. Since gaining independence in 1973, The Bahamas has maintained the fundamentals of its political heritage.

STABLE CURRENCY

Bahamian currency, which is on par with the U.S. dollar, is recognized for its steady performance and unwavering value.

GREEN INITIATIVES

Import duties have been substantially reduced or eliminated on many green products including energy-saving appliances and fixtures, solar equipment, plus electric and hybrid cars.

INVESTMENT ENVIRONMENT

The Government of The Bahamas is committed to developing a fair, investment-friendly climate focused on providing:

grand bahama abaco bimini berry islands

Investment Proposal

International investors seeking to do business in The Bahamas should submit a project proposal to the Bahamas Investment Authority (BIA) containing:

• Name

• Address

• Description of proposal

• Principals

• Proposed location

• Land Requirements

• Proposed Start-up date

• Management/Personnel Requirements

• Capital Investment

• Employment Projection

• Financial Arrangements

• Environmental Impact

• Economic Impact and Business Plan

*Necessary work permits for key personnel will be granted. Businesses requiring permit for persons other than key personnel are encouraged to consult BIA in advance.

Investment Incentives

A series of investment incentives provide relief from customs duties on approved raw materials, equipment and building supplies, as well as allowing exemptions from real property taxes for up to 20 years.

• The Export Manufacturing Industries (Encouragement Act)

• The Industries Encouragement Act

• The Agricultural Manufactories Act

• The Tariff Act

• The Free Trade Zone Act

• The City of Nassau Revitalization Act

• The Hotels Encouragement Act

• The Family Island Development (Encouragement Act)

• The Spirits and Beer Manufacturer Act

• The Bahamas Vacation Plan and Time Sharing Act

• The Hawksbill Creek Agreement Act

INVESTMENT ENVIRONMENT

(Freeport City)

Areas Targeted For Foreign Investment (required investment of $500,000 and above)

• Touristic Resorts

• Upscale Condominium, Timeshare and Second Home Development

• Information and Data Processing Services

• Assembly Industries

• High-tech Services

• Ship Repair and other services

• Light Manufacturing for export

• Agro-Industries

• Food Processing

• Mariculture

• Banking and other Financial Services

• Captive Insurance

• Aircraft Services

• Pharmaceutical Manufacture

• Offshore Medical Centres

Areas Reserved For Bahamians

• Wholesale* and Retail Operations

• Commission agencies engaged in the import/export trade

• Real estate and domestic property management agencies

• Domestic newspapers and magazines

• Domestic advertising and public relations firms

• Security services

• Domestic distribution of building supplies

• Construction companies, except for special structures for which international expertise is required

• Personal cosmetic/beauty establishments

• Commercial fishing within the exclusive economic zone of The Bahamas

• Auto and appliance service operations

• Public transportation inclusive of locally solicited charter boat tours

• Landscaping

*International investors may engage in the wholesale distribution of any product they produce locally.

PROPERTY TRANSACTIONS

PROPERTY TRANSACTIONS

Real estate brokers attract a 10% commission on the sale of undeveloped property; 6% on developed property - residential or commercial.

Mortgages & Conveyances

Stamp duty on mortgages is payable at a rate of 1% on the amount borrowed. The Bahamas Bar Association follows a minimum scale fee for conveyances and mortgage transactions at 2.5% of the sale price plus out-of-pocket expenses.

Value Added Tax (VAT)

VAT is charged on all property transactions and is shared between the Vendor and Purchaser. 10% VAT is charged on commissions, legal fees, and appraisals, as well as rentals and Common Area Maintenance (CAM).

Transfer Tax

Effective July 1, 2023, VAT on real property will be as follows:

First-Time Homeowners

VAT Duty Exemption applications can be made by First Time Bahamian Homeowners on their conveyance and mortgage instruments for owner occupied residences up to triplexes.

INT’L. PERSONS LANDHOLDING ACT, 1993

The International Persons Landholding Act 1993 encourages foreigners or companies owned by them to purchase a second home in The Bahamas.

• A non-Bahamian who acquires a condominium or property for use as an owner occupied property must register the acquisition with the Investments Board of The Bahamas.

• A permanent resident who acquires land, as well as a non-Bahamian who acquires land under a devise or by inheritance must register the acquisition with the Board.

• A non-Bahamian who intends to acquire, whether freehold or leasehold, land for use other than a condominium, single dwelling or where it comprises two acres or more, must obtain a permit from the Board to make the acquisition.

• A non-Bahamian who owns and maintains a home in The Bahamas may apply to the Director of Immigration for an annual homeowner’s resident card that entitles the owner and immediate family to enter and remain in The Bahamas for the duration of the validity of the card.

Standard application forms and fees apply.

REAL PROPERTY TAX

The payment of Real Property Tax is required by law in The Bahamas. The bill is due and payable to the Dept. of Inland Revenue by December 31 to avoid an additional surcharge. If paid in full by March 31, owners receive a 10% discount on the current tax year. Exemptions are not automatic and must be applied for.

Property Tax Rates

First-time homeowners in New Providence that are entitled to Vat Exemption as First Time Home Owners may also qualify for a 5-year exemption from Real Property Taxes.

Property owners, or their attorney, can initiate an assessment, by completing and submitting the following forms to the Real Property Tax Valuation Unit :

• Property Tax Application Assessment form

• A Declaration of Real Property Tax form

• Affirmation form for owner occupied properties

Supporting documents for reassessment include:

• Deed of ownership

• Property Conveyance or Current Appraisal

At the time of closing a sale transaction, the attorney for the new owner of the real property registers the sale with the property tax office. A current appraisal is often requested and presented along with the registration.

Your HGC Appraisal Team can provide services to address property tax assessment concerns.

Condo-Hotel Tax

As of January 31, 2023, high-end properties in a hotel rental pool will incur a condo-hotel tax at 75% of the residential property rate.

Outstanding Property Taxes

The treasurer has the power to sell unimproved/ vacant land where real property taxes are in arears and unpaid for at least 6 months after the expiration of 30 days from becoming due. A 5% surcharge is applied to outstanding property taxes.

Title Insurance

Prospective purchasers are encouraged to secure title insurance to insure against the risk of hidden defects that may be discovered on the title, in addition to the security in legal opinion. The title policy is valid for as long as the insured holds the title. The premium is a one-time payment with no renewal fees. In the case of vacant land, it is recommended to increase the insurance coverage when the improvements are complete. If a defect is discovered, the title insurer will step in to assist with rectifying, and bear the associated costs on the purchaser’s behalf. Once any open issues have been satisfactorily addressed, the attorney issues the legal opinion to the title insurer and the transaction moves to completion. The title insurance policy is issued when the title deed is recorded in the Registry of Records and the premium is paid.

PLANNING & SUBDIVISION ACT, 2010

As of 1st January, 2011, homeowners occupying

RESIDENCY

& EMPLOYMENT

single-family homes must obtain proper business licenses and home renovation permits to alter their homes for commercial purposes. Land to be used for commercial purposes must dedicate a portion of the parcel for a park, recreation and open space.

Approval Authority

No development of a land can be commenced or carried on unless the developer obtains (i) Land Use Plan Approval (ii) Zoning By-law Approval (iii) Site Plan Approval (iv) Zoning Compliance (v) Architectural Design Approval (vi) Subdivision Approval and (vii) Severance Approval.

Subdivision Approval

No lots can be sold, agreed to be sold, or conveyed in a subdivision that has not received prior approval. In order to obtain approval the following must be in place (i) every road must be in accordance with the Land Use Plan; (ii) all lots must conform to the Zoning By-Law; (iii) submitted plans must indicate grading and contours of the land and the provision for the adequate disposal of surface and waste water, installing of all utilities, location of sidewalks and street lighting; and (iv) every lot must be surveyed with all markers in place on the ground.

All subdivision roads other than private roads must be completed and conveyed to the Government within one (1) year from the date of approval. All approved roads must be constructed to the satisfaction of the Minister who may also enter into agreements with respect to the construction, maintenance and operation of private roads including private water and sewerage works or other private road services. Property owners are permitted to divide a suitable parcel of land up to four times without requiring subdivision and land use plan approval by making application for severance to the Town Planning Dept.

RESIDENCY & EMPLOYMENT

The government’s immigration policy is aimed

at ensuring the reasonable security, well-being and economic progress of The Bahamas and its people.

The government considers annual and permanent residency, as well as work permits for non-Bahamians.

Obtaining An Annual Residence Permit

Persons wishing to reside in The Bahamas on an annual basis may qualify under one of the following categories:

• The spouse of a Bahamian citizen. The couple must be married for a minimum of five (5) years before the application may be submitted. In addition, the marriage must be subsisting and the couple must demonstrate that they are cohabiting as husband and wife.

• A child born legitimately outside of The Bahamas to a married woman, who is a citizen of The Bahamas, and whose husband is not a citizen of The Bahamas.

• Doctors and medical professionals who have been employed in The Bahamas for a minimum of twenty (20) years.

• Individuals who have maintained legal immigration status in The Bahamas by either work permit or resident permit for a period of more than twenty (20) consecutive years.

• Individuals who qualify for Economic Permanent Residence that either own a residence, or made investments, valued in excess of $750,000. Accelerated consideration is given to applicants where the purchase price of the home or the aggregate amount of the investment exceeds $1.5 Million.

Procedures For Obtaining a Work Permit

Non-Bahamian nationals wishing to work in the Bahamas for a period longer than 90 days must first acquire work permits. Employers must:

• Advertise the position vacancy in nationally circulated newspaper advertisements

• Obtain a Labour Certificate with Notification of Vacancy from the Department of Labour

• Apply to the Immigration Board for permission to recruit outside the country.

The completed application form(s) and supporting documents must be submitted to the Department of Immigration. An application will not be entertained if the prospective employee was already in the Bahamas, having entered as a visitor. Fees of varying amounts are charged depending on the category.

The Bahamas Immigration Bahamianization Policy, which is critical to the granting of work permits, provides that:

Necessary work permits for key personnel of businesses will be granted. Businesses requiring permits for persons other than key personnel are encouraged to discuss these requests with The BIA in advance.

RESIDENCY & EMPLOYMENT

Where work permits have been granted, each employer will be required to identify a suitable Bahamian to understudy the expatriate so that the Bahamian trainee will fill the expatriate’s position within a reasonable time. Genuine investors usually have little difficulty in complying with these requirements. Employers may obtain permits for longer periods than the standard one-year period in respect to certain key personnel on contract. Such contracts should indicate their renewal would be subject to obtaining the necessary immigration permission, and they may be endorsed to the effect that the employee is expected to train or be replaced by a suitable Bahamian within a stipulated period.

Each permit issued by the Immigration Board relates to a specific post. Permits are not altered by the Director of Immigration Board to reflect change of employment or residence. However, a person holding a work permit may make application for a new one (his new employer having been unsuccessful in recruiting a qualified Bahamian to fill the post) without having to leave the islands, providing the current work permit is still valid. The renewal of a permit on expiration is not automatic. Generally, no expatriate may be continually employed in the country in any capacity for more than five years. However, there are likely to be cases where hardship will be caused by rigid implementation of this policy. According to government, this factor will be kept in mind in applying the regulations.

Annual Travelling Sales Representative Permit

Travelling sales representatives planning to do business in The Bahamas must obtain work permits from the Department of Immigration, as well as a licence from the Licensing Authority.

Permanent Residence

Non-Bahamians wishing to reside in The Bahamas on an annual basis may apply for permanent residence under the following categories:

RESIDENCY & EMPLOYMENT

• Spouse of a Bahamian after 5 years of marriage, and whose marriage is subsisting and the couple cohabiting as husband and wife.

• Persons born legitimately outside of The Bahamas to a married woman, who is a citizen of The Bahamas, and whose husband is not a citizen of The Bahamas.

• Financially independent individuals or investors who are legitimate owners of a residence in The Bahamas – please note that persons purchasing a residence for $750,000 or more will get speedy consideration.

• Police and Prison Officers employed in the Government Service for a minimum of 10 years.

• Teachers employed in the Government Service or by charitable or religious institutions for a minimum of 10 years.

• Nurses employed in the Government Service or with private hospitals and healthcare facilities for a minimum of 10 years.

• Ministers of Religion / Priests after having been employed for a minimum of 20 years.

• Doctors / Medical professionals after having been employed for a minimum of 20 years

• Persons who have held legal work permit status for more than twenty (20) consecutive years.

• Persons who resided in the country for at least 10 and less than 20 years and who held a work permit in any of the scales 5 to 8.

Business Licence

All persons conducting business within The Bahamas must be granted a licence in accordance with the requirements of the Business Licence Act, 2010.

Applications are completed and submitted

online at vat.revenue.gov.bs

Filings and submissions of renewal applications are due on or before January 31 and payable by March 31 annually.

A non-Bahamian applying to conduct business in The Bahamas requires approval from the Bahamian Investment Authority.

A Business License for a new business has a flat fee of $100. Fees for an existing business vary based on the type of business currently operating and the business turnover figures.

Temporary Business Licence

These licences are granted to foreign individuals/companies for a job in respect of a specific contract for a specified period of not more than three years, (e.g. Contract workers on special projects).

Business ventures that require a temporary business licence include:

• Non Bahamian Company

• Bahamian company with non-Bahamian partnership

• A foreign person Fee for a Temporary licence is 1.5% of the value of the contract.

Occasional Business Licence

These licences are granted to an applicant to carry on a business activity at an event or another short term purpose. They may be granted for a period not exceeding seven (7) days and may be applied for up to four times per year. An Occasional Business Licence is required for the following activities:

1) To carry on a sales business at a regatta, farmer’s market or other national or community event;

2) To act as a traveling salesman (non-resident individual);

3) To stage a trade show or expo;

4) To stage a business event at any place or premises of public dancing, singing, music or other such public entertainment.

Non-profit organizations/ entities are also considered businesses.

The tax for an Occasional Licence is $25.

BAHAMAS ENTRY REQUIREMENTS

The Bahamas is a major tourist destination and every effort is made to keep visitors’ Immigration formalities to a minimum. Nationals of non-Commonwealth countries should enquire at the nearest British Consulate or Bahamian Embassy as entry requirements vary from country to country.

All visitors must have a return or onward ticket, and a valid travel document (such as a passport and visa) to allow entry into another country as applicable. Visitors may also be asked to produce evidence of sufficient funds to allow them to be self-sustaining whilst in the Bahamas.

Visitors may remain for a maximum of 8 months, provided they can show means of financial support for this period. Visitors are not allowed to engage in any form of gainful occupation while in the Bahamas.

Passports

Passports are required by all persons entering The Bahamas.

Visas

All persons entering The Bahamas require a Bahamian visa except the following persons:

United States Citizens entering as a bona fide visitor for a stay not exceeding eight (8) months. Alien residents of the United States who, upon arrival, are in possession of United States Alien

Registration Cards for visits not exceeding thirty (30) days.

Canadian citizens

Landed immigrants, in possession of Canadian Immigration Record Form 1000 may enter without a visa for visits not exceeding 30 days. These persons should have a national passport.

• United Kingdom citizens

• Citizens of Western Union

British Commonwealth citizens with the exception of the following countries:

• Pakistan

• Cameroon

• Mozambique.

• India

• Nigeria

• Ghana

Citizens of South American countries, however the nationals of the following countries can visit for periods not exceeding 3 months:

• Argentina

• Bolivia

• Brazil

• Chile

• Colombia

• Costa Rica

• Ecuador

• El Salvador

• Guatemala

• Honduras

• Mexico

• Nicaragua

• Panama

• Paraguay

• Peru

• Uruguay

• Venezuela