THE BAHAMAS Law and Practice Contributed by: Alistair Chisnall and Erica Paine, Graham Thompson
The Bahamas Investment Authority (BIA) and the National Economic Council (NEC) Applications for requisite approvals are submit - ted to the BIA, a government department based in the office of the prime minister. Applications for approval of major investment or develop - ment projects are considered by the NEC, a non-statutory committee within the BIA that is comprised of the prime minister, members of the cabinet of The Bahamas government and other senior policy advisers. Once an application is approved by the NEC/BIA, all other approvals required from other departments and agencies will follow (subject to compliance with the further necessary steps and procedures). The International Persons Landholding Act (IPL Act) International Persons Landholding Permit In the case of land transactions (other than one- off purchases of residences or vacation homes), a foreign purchaser must obtain an “International Persons Landholding Permit” in respect of the land they intend to acquire, in accordance with the IPL Act. The application is made to a govern - ment department called the Investments Board. Where a permit is required under the IPL Act, it must be obtained as a condition for closing on the purchase transaction; in the absence of obtaining it, a buyer’s conveyance would be Where a foreigner is purchasing real estate for single-family residential use only (whether for long-term use or for periodic use as a vacation home), under the IPL Act the purchaser does not have to obtain a permit as a condition for com - pletion and may simply register their purchase of the land following the closing of the transaction and the payment of the tax on the transaction. deemed null and void in law. Certificate of Registration
The purchaser is issued a “Certificate of Regis - tration” in such instances. One-time fee payment In either case, the permit or certificate obtained by the foreign purchaser is attached to their title deed when it is lodged for recording in the Reg - istry of Records and recorded with it. The current one-time fee due to the Public Treasury for a permit or certificate is USD1,000.
3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate
The manner in which commercial real estate transactions are financed can vary widely, depending on the size of the project and loan, and the parties involved. In The Bahamas, well-established licensed local banks and financial institutions that offer tra - ditional financing for projects of all types and commercial banking options, or that often act as security trustees, have a very strong presence. In addition, The Bahamas government has his - torically also permitted the financing of local commercial projects by international lenders, subject to exchange control regulations and the usual vetting and approval procedures for for - eign investors. Where a foreign lender intends to advance a loan and hold Bahamian real estate as security for it, an application is made to the Investments Board for a mortgagee’s landhold - ing permit to be issued under the IPL Act, and to the Central Bank of The Bahamas for the req - uisite approvals to be issued to the lender under the Bahamian Exchange Control Regulations.
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