Buying in New Providence is exciting, but the closing table can come with more line items than you expect. If you are a first-time buyer or purchasing a second home, understanding typical closing costs helps you plan with confidence and avoid surprises. In this guide, you will learn what buyers usually pay in New Providence, how costs differ for residents and non-residents, and what to expect if you finance your purchase. All figures are in Bahamian dollars (B$), which are on par with USD. Let’s dive in.
Note on estimates: figures and ranges below reflect common local practice. Exact government fees, VAT rules, and legal charges can change. Always confirm your numbers with your conveyancing attorney and lender before you commit.
Closing cost basics
Closing costs are the one-time charges you pay at or before settlement, separate from your down payment. In New Providence, the largest drivers are government taxes and registration fees, professional and legal fees, lender-related charges if you are financing, and insurance. Some recurring items, like property tax and association dues, are prorated between buyer and seller at closing.
Most buyer costs are not negotiable with third parties, especially statutory fees. Your attorney will prepare an itemized estimate that shows government levies, VAT on services where applicable, and their disbursements for searches and registrations.
Buyer closing cost checklist
Use this list to frame your budget and questions for your attorney and lender:
Government taxes and registration
- Stamp duty or transfer tax on the conveyance. This is often one of the largest line items and varies by transaction type and official schedule. Your counsel will confirm the current rate and any exemptions.
- Deed or land registration fees at the Registrar of Records. These are required and typically smaller than stamp duty.
- Mortgage registration and any stamp on loan documents if you are financing.
VAT on services
- VAT generally applies to many professional services in The Bahamas. Expect VAT on invoices from lawyers, surveyors, appraisers, and some lender services unless your provider confirms an exemption.
Conveyancing and legal fees
- Your attorney handles the contract, title search, due diligence, closing documents, and registration. Fees are often percentage-based or a flat/capped amount plus disbursements for searches, copies, couriers, and registry charges.
Lender-related costs (if financing)
- Bank application or origination fee, often a fixed amount or a percentage of the loan.
- Bank valuation or appraisal fee, typically a few hundred B$ depending on the property.
- Lender’s legal and registration costs, separate from your own attorney’s fee.
- Mortgage insurance where required.
Surveys, inspections, and reports
- Boundary or lot survey, especially for land or houses. Costs vary with size and complexity.
- Structural or condition inspection and any specialist reports, such as pool, pest, mold, or septic.
Title and clearance searches
- Searches for title, encumbrances, and any outstanding taxes or utilities. These are usually modest fixed fees and disbursements billed through your attorney.
Insurance and prorations
- Homeowner or hazard insurance, often required by lenders before they release funds. You may be asked for the first-year premium at closing.
- Property tax, utilities, and homeowners association dues are commonly prorated as of the closing date.
Miscellaneous items
- Utility connection or transfer fees.
- Homeowners association transfer or initiation fees if applicable.
- Real estate commission is typically paid by the seller in many Bahamas transactions, but always confirm the deal terms.
How much to budget
Every transaction is different, so treat the following as ballpark guidance and verify with your attorney and lender:
- Smaller, all-cash local purchase: you might see roughly B$1,500 to B$5,000 in minimal disbursements plus professional fees. As a share of price, this can be under 1 to 2 percent on modest properties.
- Typical financed home purchase: including legal fees, lender costs, VAT on services, registration or stamp charges, and insurance, many buyers plan for about 2 to 5 percent of the purchase price. Government taxes or special charges can increase the total.
- Second-home or non-resident purchase: buyers coming from overseas should budget higher to account for additional compliance, licensing, or statutory items. Planning for about 3 to 7 percent or more is prudent, depending on property type and specific requirements.
Your exact total will hinge on your price point, whether you finance, the current statutory schedule for stamp duty, the scope of due diligence, and any association or community fees.
Illustrative scenarios
These examples show order of magnitude, not official rates. Use them to frame questions for your advisors.
Example A: Buyer-financed condo at B$350,000
- Conveyancing and legal fees plus disbursements: about B$4,000 to B$6,000
- Lender valuation, fees, and mortgage registration: about B$1,500 to B$3,500
- Insurance, first-year premium held at closing: about B$1,000 to B$2,500
- Title search, surveys, and small registry fees: about B$500 to B$1,200
- Government stamp or registration charges: variable, can be several thousand; confirm with your attorney
- Estimated total buyer closing cost excluding government levies: roughly B$7,000 to B$13,000, which is about 2 to 4 percent of price, then add government levies
Example B: All-cash single-family home at B$950,000 for a foreign buyer
- Conveyancing and legal fees plus disbursements: about B$6,000 to B$12,000
- Survey if required: about B$1,000 to B$4,000
- Insurance, first-year premium: about B$2,500 to B$6,000
- Title and registration charges, plus any foreign-buyer related items: variable and potentially significant
- Estimated total buyer closing cost excluding special government levies: roughly B$10,000 to B$25,000, about 1 to 3 percent of price, then add government or permit-related charges
Important: government schedules and VAT treatment can change. Ask your conveyancer for a written estimate that reflects your property type, buyer status, and current rules.
Resident vs non-resident differences
First-time local buyers
- You may qualify for exemptions, reliefs, or preferential treatment under certain programs. Your attorney will confirm eligibility and documentation.
- Financing with local banks can be more straightforward with fewer special approvals required.
Second-home and foreign buyers
- You may face additional statutory requirements, permits, or registrations. These can carry fees and add time to your timeline.
- Plan for currency transfers and source-of-funds documentation. Build time for compliance reviews and approvals before closing.
Financing vs cash: what changes
If you finance, expect lender-specific costs that cash buyers will not have. These include a bank application or origination fee, a valuation or appraisal, mortgage registration and legal charges tied to the loan, and possibly mortgage insurance for higher loan-to-value scenarios. Lenders also typically require proof of homeowner or hazard insurance before releasing funds.
Cash buyers avoid lender fees and can sometimes move faster. You should still budget for conveyancing, searches, surveys, and insurance. Your attorney may advise a survey or specialist inspections based on the property.
When you pay and who pays what
Timing
- Most charges are paid at or before closing. This includes your attorney’s fees and disbursements, stamp duty and registration, and any lender requirements such as insurance.
- Annual property taxes, utilities, and association dues are usually prorated at closing and adjusted between you and the seller.
Who pays
- Buyers typically pay their own legal fees, lender fees, valuation, inspections, and required insurances.
- Government charges for registration and stamps are commonly a buyer responsibility at closing, although parties can negotiate in some cases.
- Real estate commission is often paid by the seller, but verify the agreed terms in your contract.
Documents and timeline
To keep your closing on track, prepare these items early:
- Valid ID and proof of funds
- Signed purchase agreement
- Lender letter or offer if financing
- Proof of homeowner or hazard insurance
- KYC documentation for international transfers and source-of-funds
- Seller-provided materials such as title, survey, and any compliance certificates
Closing timelines vary with financing, due diligence, and official registration. Your conveyancer and lender will guide you on expected dates and when each fee is due.
Smart ways to avoid surprises
- Ask your conveyancing attorney for a written, itemized estimate of government fees, VAT on services, disbursements, and expected timing.
- If you are financing, request a complete good-faith estimate from your lender that includes origination, valuation, legal, registration, and whether any fees are refundable.
- Confirm VAT treatment on every professional invoice before closing. Some providers show VAT as a separate line.
- Request seller documents early, including surveys or compliance certificates, to avoid last-minute search fees or delays.
- Budget a contingency of about 1 to 2 percent of the purchase price for variable government or registration charges.
- For foreign buyers, confirm immigration, exchange-control, or investor-permit questions with your attorney early in the process.
Ready to take the next step? If you want a property-specific estimate and a clear plan from offer to keys, our team is here to help you navigate the details and stay on budget.
Chancellors KW Bahamas offers concierge, end-to-end guidance for local and international buyers in New Providence and across The Bahamas.
FAQs
What is stamp duty and how is it calculated in New Providence?
- Stamp duty or transfer tax is a statutory charge on property conveyances. The rate and method of calculation depend on current rules and your transaction type. Your conveyancing attorney will confirm the exact amount for your purchase.
Are buyer legal fees negotiable, and how are they charged?
- Legal fees are commonly percentage-based or a flat or capped fee plus disbursements. You can discuss scope and billing with your attorney, and request an itemized estimate before you engage.
Will I pay VAT on legal and professional services?
- VAT generally applies to many services in The Bahamas, including legal work, surveying, appraisals, and some lender services. Confirm current VAT rules and how they appear on each invoice.
Do buyers pay the real estate commission in The Bahamas?
- In many transactions the seller pays the listing commission, but you should confirm the commission arrangement and responsibilities in your specific contract.
What extra costs do non-resident buyers face in New Providence?
- Non-residents may need permits, registrations, or other compliance steps that carry fees and can extend timelines. Your attorney will advise on requirements for your property and buyer profile.
How long does closing take, and when are funds due?
- Timelines depend on financing and official registration. Many fees are due at or before closing, and lenders may require proof of insurance before releasing funds. Your attorney and lender will provide key dates and funding instructions.
