Real Property Tax Exemptions
Real Property Tax (RPT) assessments for the new tax year will be issued to property owners within the SERZ based on the pre-Dorian value.
Please note: Bahamians on the Family Islands are exempt from RPT.
Real Property Tax assessments will be undertaken on or before October 31, 2019 for the year 2020. Your declaration in this section will be treated as a “declaration of status” requiring the property owner to declare the status of the property.
UPDATE- The Disaster Reconstruction Authority “Special Economic Recovery Zone (SERZ) Relief” Order, 2019, has been extended until June 2021, for select key items.
Discount on value added tax on the sale of certain real property.
(1) For the period commencing on the 1st day of January, 2021 and ending on the 30th day of June, 2021, on the sale of any real property, the purchaser may receive discount on the VAT that is due as a result of that sale, in accordance with the scale below, if the purchaser satisfies one of the conditions specified in paragraph (2)
VAT DISCOUNT ON REAL PROPERTY PURCHASES
|Zero||$100,000||Up to $2,500||50% Max $1,250|
|$100,001||$250,000||$1,000 to $25,000||35% Max $8,750|
|$250,001||$500,000||$25,001 to $50,000||20% Max $10,000|
(2) A purchaser will be eligible for discount on the value added tax due upon the sale of real property if he demonstrates:
(a) that the property is fully habitable;
(b) where the property is not fully habitable he has plans to make repairs and can start the repairs within 75 days of closing; or
(c) where the property is vacant, he has plans showing that he intends to undertake material commercial or residential development of the property.
Where a property was subject of the tax discount under this Order and the purchaser has not started construction, or repairs within 75 days of closing of the sale that tax becomes payable as if this Order was not in force.
Criteria to qualify:
Vacant Land: Purchaser is required to provide plans that he/she intends to undertake material commercial or residential development of the property
- Purchaser is required to provide evidence that the property acquired is in a fully habitable condition
- Provide plans for the immediate repair or refurbishment of properties that are not in a habitable condition
Please note in order to maintain VAT Credit, the qualifying development, repair or development work must commence within 75 days of the close of sale. Further, the development and repairs of the property must be followed through to scheduled completion. Otherwise, the full VAT amount becomes payable.
Process: The conveyance will take place before any structural plans are in place or work can commence. The VAT adjustment must consequently be predicted on a promise or undertaking by the purchaser.