0% CGT. 1:1 USD Parity.
North America’s Premier
Offshore Wealth Market.
The Bahamas offers something no European market can match: a 1:1 USD peg, zero capital gains tax, and a 50-minute flight from Miami. Nassau, Paradise Island, and the Out Islands have absorbed record North American and European demand with tight inventory and double-digit luxury price growth. The report covers the full picture — including the true acquisition cost load, what property taxes actually apply to investors, and why the exit market is thinner than the pricing suggests.
- 0% capital gains tax and no inheritance tax: the cleanest tax exit in the Caribbean for USD-denominated capital
- 1:1 Bahamian dollar to USD peg: no currency risk for US investors; all investment and rental income remains in USD-equivalent terms
- Record 11M+ visitor arrivals in 2024: tourism-backed STR demand supporting 4–6% gross yields on well-managed coastal assets
- Tight inventory in 2025: fewer new listings across Nassau/Paradise Island and key Out Islands driving price resilience and low days-on-market
- Economic Permanent Residency from USD 1M+ property investment: a credible second-residency route for North American and European HNW investors
- Double-digit price growth in luxury segments (2024–2025): Nassau/Paradise Island and Exuma leading the appreciation cycle
The Bahamas Intelligence Report
4–6% Coastal Yields, USD 1:1 Parity, 0% CGT, Nassau & Out Islands Pricing, Residency Pathway Assessment
Want the full report? See what members get →
✓ Report on its way.
Check your inbox within 5 minutes.
Independent research · No developer affiliation · Unsubscribe anytime
The Caribbean’s Most Liquid Luxury Market. Here’s the Full Case — Including the Acquisition Costs That Erode Returns.
The Bahamas is the closest thing the Caribbean has to a deep, established, USD-native luxury real estate market. Zero CGT, 1:1 USD parity, 50 minutes from Miami, and record tourism demand make the fundamental case straightforward. What the developer brochures understate is the true cost of entry for foreign investors — which can reach 10–15%+ of purchase price — and the fact that yields in the 4–6% gross range deliver 2–4% net once management, insurance, and property tax are modeled properly. The long-term thesis here is capital appreciation in a supply-constrained luxury market, not income yield.
Property Market: Nassau, Paradise Island & Out Islands
The Bahamas property market is effectively segmented into three tiers. Nassau and Paradise Island represent the deepest, most liquid segment: highest transaction volume, strongest pricing, and the widest buyer pool. Average residential pricing across the market runs approximately USD 2,000/m² with coastal and investable non-prime stock in the USD 1,500–2,500/m² band, and the 2024–2025 period saw double-digit price growth in luxury segments driven by tight inventory and accelerating North American demand. How the Out Islands — Abaco, Exuma, Eleuthera — trade against Nassau, and where the waterfront premiums actually start, are mapped in the full member report.
The complete The Bahamas analysis continues for MPH members
- ✓ Rental Yield Architecture: What Investors Actually Receive
- ✓ True Acquisition Cost for Foreign Investors
- ✓ Property Tax: What Investment Properties Actually Pay
- ✓ Residency Pathway: Economic Permanent Residency
- ✓ The Arbitrage Case vs. South Florida & Mediterranean
- ✓ The Out Islands Decoded: Abaco, Exuma & Eleuthera Pricing vs. Nassau
- ✓ Zone-by-Zone STR Performance, Pricing & Inventory Data
- ✓ Annual Holding Costs in Full: Property Tax + Hurricane Insurance, Budgeted
- ✓ The USD Peg Beyond the Headline: GBP & EUR Investor Angles
- ✓ THE YIELD VS. APPRECIATION QUESTION: WHAT IS THE BAHAMAS ACTUALLY FOR?
Already a member? Open the full report in your portal →
The Bahamas Assessed Against the Three Criteria That Matter
ARBITRAGE — 6.5
Caribbean luxury assets at USD 1,500–2,500/m² with 0% CGT and 1:1 USD parity represent a genuine 2–3x discount to South Florida and comparable Mediterranean markets — a discount that is structural, reflecting real risks rather than mispricing. The full comparables table — and the cost loads that cap the score — is in the member report.
SCARCITY — 7.6
Limited front-line coastal land across Nassau, Paradise Island, Abaco, Exuma, and Eleuthera creates genuine supply constraint in prime zones, and tight 2025 inventory has supported price resilience and compressed days-on-market. The full supply analysis — what actually constrains new stock, and where concentrated demand can move prices — is in the member report.
EXIT — 6.2
The exit score reflects the structural thinness of the secondary market: Nassau and Paradise Island are the deepest sub-markets, and the Out Islands are materially less liquid. The full liquidity map — sale timelines by zone, what extends them, and the structural advantages the USD peg adds on exit — is in the member report.
Questions Before You Download
What does it actually cost a foreign investor to buy property in The Bahamas?
More than most listings indicate. The International Persons Landholding Act requires foreign buyers to register their purchase, and once the private treaty fee, stamp duty, and legal fees stack up, total buyer closing costs typically reach 10–15%+ of the purchase price for a foreign investor. The full cost build — line by line, with worked examples and the break-even implications for shorter holds — is in the member report.
How does the USD peg actually benefit me as an investor?
The Bahamian dollar has maintained a 1:1 peg with the US dollar since 1973. For USD-denominated investors, this means purchase prices, rental income, and sale proceeds are all effectively in USD with no currency conversion risk on the investment itself. What the peg means for non-USD investors — and how it compares against floating-currency Caribbean markets on repatriation — is covered in the member report.
What property tax will I pay on an investment property in The Bahamas?
The Bahamian property tax structure has more bite for investors than for owner-occupiers. Owner-occupied homes benefit from the lower 0.75% tier on the first USD 500K; investment properties, second homes, and non-owner-occupied residential are generally assessed at higher rates. The full holding-cost model — property tax plus hurricane insurance, with worked annual budgets by property value — is in the member report.
Is the 0% CGT meaningful for a US investor?
Partially. The Bahamas imposes no capital gains tax on real estate sales — a genuine advantage. However, US persons remain subject to US federal capital gains tax on worldwide income, including gains from Bahamian property sales. Who the 0% rate genuinely shelters — and how the answer differs for US, UK, and EU investors — is covered in the member report. Proper US tax counsel is essential before investing.
Which Bahamian market is best for an investor: Nassau, the Out Islands, or somewhere else?
Depends on your primary objective. Nassau and Paradise Island offer the deepest liquidity, strongest STR demand, and most predictable exit — the right choice for investors prioritising income and resale certainty. The zone-by-zone decision framework — current pricing, inventory data, and STR performance across Nassau, Exuma, Abaco, and Eleuthera — is in the member report.
Is MPH affiliated with any Bahamian developer, agent, or residency facilitator?
No. MPH International has no financial relationship with any developer, real estate agent, or residency facilitator in The Bahamas. We earn nothing from any Bahamas transaction.
Bahamas MPH Score (68 · Watch · BBB) calculated under MPH Methodology v1.2 · Dataset verified June 26, 2026. Key factors were calibrated against the following published sources:
- EPR requirements: USD 1M minimum, 10-year hold, lifetime PR, no minimum stay — Henley & Partners - Bahamas Residence by Investment (Oct 2025)
- RBI marketing, approved real estate options — JH Marlin - Bahamas Residency by Investment (Dec 2025)
- Tax-free lifestyle and offshore positioning commentary — Nomad Capitalist - Bahamas Residency by Investment (Jan 2023)
- No formal CBI law; citizenship only via standard naturalisation routes — Legarithm - Bahamas Citizenship by Investment 2025/2026 (Nov 2025)
- Round-trip transaction cost ranges, property tax schedule, absence of income/CGT — GlobalPropertyGuide - Bahamas Taxes and Costs (Sep 2025)
- VAT/stamp duty schedule and closing cost structure for foreign buyers — BahamasLaw - Real Estate Transactions in the Bahamas (Oct 2024)
- Practical VAT bands on real estate transactions for foreign buyers — Piece of Paradise Realty - Costs and Fees in the Bahamas (Jun 2025)
- Bahamas closing cost calculator 2026 — Homes for Sale in Nassau Bahamas - Closing Cost Calculator (Jan 2026)
- Real estate tax obligations and completion cost overview — KRA Bahamas - Closing Costs & Property Taxes (Sep 2024)
- 2026 citizenship routes including by marriage and investment narrative — Better MCR Bahamas - Bahamas Citizenship Guide (Jan 2026)
Source dates reflect publication or retrieval at time of scoring. External links open in a new tab; MPH International is not responsible for third-party content.
This report is published by Mission Point Holdings International for informational and intelligence purposes only. It does not constitute financial, investment, tax, or legal advice. Data is sourced from publicly available records, Global Property Guide, Graham Real Estate, Morley Realty, Dupuch Real Estate, and third-party intelligence current as of mid-2026. Property tax rates, stamp duty structures, residency thresholds, and acquisition costs are subject to change by the Government of The Bahamas. Per-m² pricing benchmarks are indicative; verify with qualified local agents and counsel before committing capital. US persons should obtain qualified US tax counsel before investing. Hurricane and climate risk assessments reflect mid-2026 conditions. All investments involve risk, including the potential loss of principal. MPH International has no financial relationship with any developer, agent, or investment programme operator in The Bahamas. Always consult qualified legal and tax counsel before making investment decisions. © 2026 Mission Point Holdings International. All rights reserved.