FAQ’S – RPT
A tax levied by the government on real property, the value of land and improvement (buildings, paved areas, attachments).
It was established in 1969. With several amendments made to the Act.
Because it is the law to help the government and country to meet its financial commitments. E.g. for capital development, infrastructure maintenance, medical services, armed forces, pay public servants, garbage collectors, fix and maintain roads, etc.
The tax is due sixty days after January 1st of each year
Yes, with approval from the department.
You have the option to pay in installments or pay in full.
Yes, If tax is not paid by Dec 31st of any tax year a 5% surcharge is applied
If payment is not made before the end of each tax year a 5% interest is added to the outstanding tax amount. Additionally, the treasurer of the Government can put a lien against your property and it can be taken by the Gov’t after due process.
Yes, one can apply for tax relief on an annual basis. This can be granted after an investigation has been carried out, or a deferral of the tax – this meaning that the tax will be held until the sale or transferral of the property.
■ Owner-occupied property (owner resides and uses exclusively as a dwelling).
* 1st $250,000 of property value: Exempt
* Next $250,000 of property value: 0.625% of the next $250,000 of property value
* Above $500,000 of property value (balance): 1% of remaining part of value
■ Residential properties (has 4 units or less, and is used solely as a dwelling place)
* 1st $75,000 of property value: $300 flat fee
* Anything above first $75,000 of property value (balance): 0.625% of remaining property value
■ Commercial properties (above 4 units even if used as a dwelling place)
* 1st $500,000 of property value: 0.75% of property value
* Anything above $500,000 (balance): 2% of remaining property value
■ Vacant land for foreigners
* 1st $7,000 of property value: $100 flat fee
* Anything above $7,000: 2% of remaining property value
By paying to the Department of Inland Revenue on Carmichael Road or at any Royal Bank of Canada. You can also pay by credit card, cheques or wire transfer.
No Vat is added to REAL PROPERTY TAX because it is already a tax.
Only the exemption under stamp and first time home owner’s exemption.
If you paid your bill by…..Senior Citizens Benefit: After 250,000 exemption, a 50% discount on balance of home value not exceeding 1 million dollars. But they must be 65 years or older, have an NIB Senior Citizen’s card.Full Payment Benefit: If tax is paid by Mar 31st of any tax year, a 10% discount is applied.
Yet to be determined by this Department, but can be obtained through Ministry of Finance.
NO at this time they are tax free , only foreigners pay on these islands
No islands are exempt with the exception of Freeport who is still under the Hawksbill Creek Agreement.
Senior Citizens are exempt up to 250,000 from paying real property tax.See question & answer #14.
Through the Investment Board at the Ministry of Finance.
Department of Inland Revenue office on Carmichael road or at any Royal Bank of Canada.
The property assessment number.
Yes, but a bounced cheque will result in a $30.00 charge.
All answers must be true and correct and show current market value.*
This unit is responsible for assessing each property vacant or not, submit a report and place a value on the property.
Yes, a visit is made to each property. Measurements and photos are taken of the ALL REAL property. (e.g. pools, gazebos, anything that is not detached or removable is considered to be real property.
By declaring your property to the department, a declaration has to be completed if an improvement is made to the site. Where an occupancy certificate or conveyance should be provided and if vacant copies of your valid passport.
Any lending institution can pay taxes on your behalf but they will add it back into your loan amount should you qualify.
It can change if an addition is made to the property or if there is a general reassessment of properties in the country.
29. What is considered a multi-purpose structure?
How is tax applied?
A multi-purpose structure is an apartment where the owner occupies a part of the building and the remainder is rented.
The tax is then calculated in proportion to the percentage of the space occupied e.g. If owner occupies 60%, then 60% is then allowed as exempt but not exceeding $250,000.
THIS IS ONLY APPLICABLE UP TO FOUR UNITS
There are no zones at this time, but each area/location can carry a different rate.
Bahamians DO NOT pay any real property tax on Vacant landNon-Bahamians pay based on value: e.g. value up to 7,000.00 pay $100.00, anything over 7,000 in value @ 1 1/2%
Any property owned by a foreign entity is exempted from tax.
Property owned by Churches/Charitable organizations are also exempt
No Business licence is needed.
Yes, a TIN is required.