The Immovable Property (Acquisition by Foreign Persons) Act 1981("the Act") governs the acquisition or holding of real estate in the Commonwealth of The Bahamas by "foreign persons" meaning non-citizens of The Bahamas, Companies with any shares or capital owned by such a person, any company incorporated outside of The Bahamas or any international organisation. The Act does not affect the rights of foreign persons already holding land at the date upon which the Act came into operation, which was the 1st November, 1983.

Under the Act, a foreign person may not acquire land in The Bahamas by devise or inheritance (see endnote 1) from a foreign person (see endnote 2), except under the authority of a permit issued by the Foreign Investments Board to the party so acquiring.

If such permit is not granted, the person in question shall sell the property, or cause it to be sold within the period of Three (3) years from the date when the permit was first required, or such longer period as the Board may allow.

If the property is not sold before the expiration of the period in question then, until such sale, there is a penalty payable to the Bahamas Treasury in the amount of Ten percent (10%) of the rateable value of the property per annum on every successive anniversary of the expiration of such period, and pro-rated in respect of any period less than a year.

Regulations made under the Act provide for the form of application, and the information and supporting documents which must accompany the same.

The foregoing requirements do not apply to property which was, at the deceased's death, his usual place of residence in The Bahamas, and devised to his spouse, child, grandchild, parent, sibling, niece or nephew.

Endnote 1:
The Act also extends to the falling into possession of an estate or interest in remainder, in expectancy or in reversion.

Endnote 2:
In the case of a foreign person acquiring property from a Bahamian citizen (except, it would appear, by inheritance e.g. upon intestacy) the Act does not apply.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.