Global Daily Tax News, Bahamas Clarifies Stricter Tax Rules For Foreign Homeowners, (Jun 11, 2025)

The Bahamas Government has said it will release guidance on newly proposed residence-based eligibility requirements for foreign homeowners to access owner-occupied property exemptions.

Currently, "foreign homeowners" may obtain the owner-occupied exemption by submitting a declaration that the property is owner-occupied and not rented.

The Budget, however, introduces a new formal requirement regarding the minimum number of days the homeowner must be resident to access the exemption.

Specifically, the full exemption will be available only to tax resident individuals (those residing for more than 183 days during the year in the Bahamas), while those residing in the Bahamas for more than 90 days will be able obtain only a partial exemption.

Following the release of the Budget, the Government has confirmed that under the Budget proposal, once the relevant legislation is enacted, foreign homeowners will be required to submit a revised annual affirmation, which will require a declaration of the number of days they were physically resident in the Bahamas during the year.

The Government said: "This measure ensures greater accountability and alignment with international best practices, while continuing to support legitimate owner-occupiers who contribute meaningfully to the Bahamian economy and communities."

"The government remains committed to transparency and effective tax administration. Further guidance will be provided to ensure a smooth transition for affected homeowners."