The Bahamas: Central Bank relaxes exchange controls on residential real estate transactions
The Central Bank of The Bahamas (Bank) proposes to liberalize exchange controls (EC) on residential property transactions (both purchases and sales) involving non-residents effective October 1, 2019.
The EC relaxation would apply regardless of whether the transactions take place in the name of an entity or vehicle ultimately owned by such non-resident or conducted directly by the non-resident.
Concurrently, the Bank proposes to delegate the authority to commercial banks (authorized dealers) to sell foreign currency for repatriation of residential real estate proceeds, on evidence that the beneficial owner of the sold property is non-resident.
Under existing policies, non-resident entities must be designated as “resident” to be eligible to hold real estate in The Bahamas. The Bank will designate this status automatically during the conveyance process, along with “approved investment status.” This would not, however, confer any entitlement beyond ownership of the property.
This reform departs from the current policy which requires: i) the Bank’s approvals of real estate transactions involving non-residents; and ii) conversion out of Bahamian dollar proceeds on sales by non-resident to residents.
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