VAT DISCOUNT ON REAL ESTATE PURCHASES

 

Keeping You Updated

VAT Rates - Who Pays What

Normally the VAT is split equally between the buyer and seller. Rates are as follows:

2.5% on transactions up to $100,000

10% on transactions over $100,000

VAT Discount - within SERZ (Special Economic Recovery Zone)*

At closing, a VAT discount of up to 50% will be issued on the sale of qualifying real property. The sale must close by June 30, 2021 to take advantage of this discount.

Buyers eligible for this discount must provide proof of habitability, proof of plans for repairs/refurbishment OR proof of commercial or residential development in the case of vacant land.

Work must commence within 75 days of the close of the sale and be followed through to successful completion.

*SERZ includes the islands of Abaco, the Abaco Cays, Grand Bahama, Sweetings Cay, Deep Water Cay & Water Cay.

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