Boat owners looking to enjoy tax-free living in the Bahamas will need to act fast if they are to qualify for permanent residency status with an investment of under $1m
The government has given permission to double the threshold from its current $500,000 to $1m but boat owners looking to make a move to the Bahamas will still qualify for residency at the lower purchase price if they act fast before any new limit comes into effect.
David Lambert, UK-based International Sales and Marketing Manager at Palm Cay developments in the Bahamas explains: “The $500,000 threshold was put in place to ensure these beautiful islands continue to attract high net worth individuals and to support the country’s real estate market. The Government is now seeking to increase this limit to $1m which is a significant hike in the entry level purchase price.
“The beauty of owning a property at Palm Cay is that it offers entry to Bahamian living, with the associated tax advantages, at a price which is only marginally above the current threshold.
“We have seen a huge amount of interest from both private individuals and investors looking to buy real estate in what is the premier location on the island and especially for boat owners who aspire to a luxury lifestyle enjoying these beautiful waters and islands.
“We launched our high-end condominium development, One Marina, in December and sold four properties off plan on the opening night. Our newly announced range of luxury waterside condominiums and penthouse apartments at One Marina will still meet the criteria should the tax-free residency threshold increase.”
He continues: “It is clear that interest in the real estate market remains strong, and we are continuing to attract a high calibre clientele to Palm Cay who want to enjoy a luxury tax-free lifestyle in the Caribbean.”
The debate around raising the purchase threshold for permanent residency in the Bahamas is on-going as the Government is being urged to explain what the proposed increase from $500,000 to $1m will actually represent.
The Bahamas Real Estate Association (BREA) is calling on the government to clarify whether the new $1 million investment threshold represents an increase or decrease from the previous benchmark.
According to a recent press report from island newspaper, The Tribune, the Association claims that in April 2011, former prime minister, Hubert Ingraham, revealed changes to the Bahamas’ National Investment Policy. These changes would allow foreign residents to “seek accelerated consideration of permanent resident status” on purchases ‘over $1.5 million’ – triple the current limit of $500,000.
The current cabinet has given permission to ‘double’ the threshold from its current $500,000 to $1 million – so has the limit gone up or down?
So, while the ‘powers that be’ try and sort out that particular conundrum, it is important to focus on the fact that the imminent shift in the threshold means that anyone seeking to buy a property in order to secure permanent residency should move fast.
The $500,000 threshold currently stands, and anyone purchasing a property over this value in the Bahamas will automatically be able to apply for fast-track residency status, with the many lifestyle benefits and tax advantages that it brings.
The Cabinet has also agreed to the introduction of a tax residency certificate for individuals and corporations with the qualifying criteria being a minimum stay of 90 days in the Bahamas.
For more information about life at Palm Cay visit www.palmcay.com
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