THE BAHAMAS Trends and Developments Contributed by: Darron S Pickstock and Tammie T Knowles, Glinton Sweeting O’Brien
Conclusion In conclusion, navigating the regulatory land - scape of property rentals in The Bahamas requires a comprehensive understanding of the intricate VAT and business licence requirements, which vary based on factors such as rental dura - tion, ownership status, and rental type. For foreign investors, compliance entails regis - tering for VAT and obtaining a business licence for both short-term and long-term residential rentals, as well as commercial rentals, with thresholds and exemptions to consider. Similarly, Bahamian stakeholders must adhere to specific guidelines, with Bahamian individu - als and wholly Bahamian owned holding com - panies subject to different VAT and business licence obligations compared to non-holding companies. Furthermore, the enforcement of VAT on addi - tional services such as cleaning fees and vehicle rentals underscores the importance of thorough compliance, especially within the evolving land - scape of online marketplaces like Airbnb and VRBO, where homeowners may face additional documentation requirements. In this evolving regulatory landscape, staying abreast of changes and understanding the par - ticulars of Bahamian law is crucial for property owners and investors alike, ensuring compliance and fostering a thriving rental market that con - tinues to attract visitors to the beautiful shores of The Bahamas.
It is uncertain whether marketplaces have caught up to the most recent changes in Bahamian laws on rental property. The authors have been informed by clients with listings on at least one marketplace that the platform would not pay the landlord’s rental revenue until after the landlord obtained a business licence and registered for VAT regardless of any threshold requirements. Given this marketplace policy example, land - lords should review their marketplace contracts to confirm who is responsible for paying Baha - mian VAT. Bahamian landlords who offer their property as vacation rentals through such plat - forms may be asked to provide documentation that is not otherwise required in The Bahamas. E. Condo hotel rentals and collective rental arrangements – where a residential accommo - dation is part of a rental pool, the hotel or person responsible for the administration of the residen - tial accommodation that forms part of the rental pool or other collective rental arrangement must obtain a business licence and register for VAT regardless of the threshold. There is no mention or distinction between Bahamians and foreign persons in these categories. F. Registration portal for short-term vacation homes – there are no legislative requirements for registration in the portal for short-term vacation homes. However, such registration is recom - mended by the Department of Inland Revenue.
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