THE BAHAMAS Trends and Developments Contributed by: Darron S Pickstock and Tammie T Knowles, Glinton Sweeting O’Brien
Glinton | Sweeting | O’Brien 303 Shirley Street PO Box N-492 Nassau The Bahamas
Tel: +1 242 328 3500 Fax: +1 242 328 8008 Email: dpickstock@gsolegal.com Web: www.gsolegal.com
Navigating Property Rental Regulations in The Bahamas – A Comprehensive Guide for Investors and Stakeholders The Bahamian archipelago, renowned for its pristine beaches and vibrant culture, attracts visitors from around the globe seeking idyllic vacation escapes. With the rise of short-term vacation rentals facilitated by platforms like Airbnb and VRBO, the regulatory landscape governing property rentals in The Bahamas has evolved. The regulations surrounding value added tax (VAT) and business licences for prop - erty rentals in The Bahamas are comprehensive and apply differently based on factors such as rental duration, ownership status, and rental type. Understanding the intricacies of VAT and business licence requirements is paramount for both foreign investors and Bahamians engaged in property rental activities. Let us delve into the details of the law and procedures for owners of short-term, long-term and commercial rentals. For the purposes of this article, note the follow - ing definitions: Bahamian – defined in Section 2 of the VAT Act as:
• a citizen of The Bahamas or a permanent resident with the right to work; • a company 100% beneficially owned by Bahamians not directly or indirectly controlled by any foreign persons; • a partnership or any other unincorporated association 100% owned by citizens of The Bahamas or permanent residents with the right to work; or • a trust where each trustee and any person having a beneficial interest in the trust is a Bahamian. Dwelling – defined in Section 2 of the VAT Act as a building, premises, structure or other place, or any part thereof that is used or intended to be used as a place of residence or abode of a natural person together with any appurtenances belonging thereto or enjoyed therewith, exclud - ing a commercial rental establishment or com - mercial enterprise. Foreign person – defined in Section 2 of the VAT Act as: • an individual that is not a citizen of The Baha - mas or is not a permanent resident with the right to work in The Bahamas;
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