The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian realtors believe 2026 is “super promising”, with one predicting a 25 percent increase in business volumes for his firm despite concerns over a potential increase in legal fees and the continued wait for tax residency certificates to launch.

Matt Sweeting, REMAX Bahamas managing broker, told Tribune Business that “2025 was our best year in business” for the five-six year-old firm with 130 closed transactions as it continues to set “sales records year after year”. However, while not anticipating “a drastic effect”, he warned that the Bahamas Bar Association’s plans to increase minimum legal fees for property deals could impact closing costs and affordability for Bahamians.

“Bahamian real estate in 2026 is showing even greater prospects with considerable interest coming in in the New Year with inquiries by people on both ends of the spectrum,” he said. “I do think it may be a little more challenging in 2026 for buyers to buy with the adjustment in legal fees.

“The legal fraternity has for quite some time had the number set at 2.5 percent of the purchase price. It’s about to go up by potentially 1 percentage point. That’s obviously just another layer of cost to the transaction process. It has an effect all around. I think it will have a greater effect on the local market, as international buyers are typically buying at a higher price point.

“That one percentage point arguably has less of an effect to their bottom line than locals. It will be interesting to see how this plays out in 2026, but I don’t think it will have a drastic effect on the numbers and outcome for real estate sales in 2026.”

Tribune Business previously revealed proposals from the Bahamas Bar Association setting out new minimum recommended rates for services such as real estate conveyances, wills, trusts, Immigration work permits and company incorporations to take effect from New Year’s Day 2026. However, this newspaper was told that the Bar has yet to vote on the issue, and it is uncertain whether and when these will be implemented.

While attorney fees on residential real estate transactions are typically equal to 2.5 percent of the purchase price, the Bar Association memorandum set out significant increases. For property conveyances of “unregistered land”, the fee is doubled to 5 percent of the purchase price, while for “registered land” it is being raised to 3.5 percent - the references to “registered” land likely linking to the Government’s recent land reforms.

Similarly, George Damianos, president and chief executive of Bahamas Sotheby’s International Realty, told Tribune Business that while he expects 2026 to be another strong year for real estate activity the high-end market will enjoy a further “leg up” if plans to launch a tax residency certificate finally come to fruition after a decade in the making.

Warning that The Bahamas is at a competitive disadvantage against other jurisdictions without this product, which would be another attraction for high net worth investors eyeing this nation for economic reasons, Mr Damianos said: “I think 2026 looks well. There’s nothing on the horizon that’s going to interfere with what’s going to happen. I think The Bahamas is still very attractive.

“It would be good if we could issue tax certificates to foreign investors and go through with the plans that the Bahamas Financial Services Board (BFSB) has been working on for the last ten years. It would be wonderful, definitely a leg up for The Bahamas. I don’t know why it’s been dragging on for so long.

“I don’t see anything on the horizon at the moment to interfere with the real estate market in The Bahamas. 2025 was a good year and we’re very optimistic that things are going well,” Mr Damianos added. “With a general election coming some investors may sit on the sidelines to see how that goes but, other than that, we’re doing well. I’m quite positive about it, and there’s a lot of activity. Things are happening.

“We could add a little boost to that by ensuring a little movement through allowing the BFSB to complete their plan and put into effect the tax residency certificate. It will help us keep up with our competitors. Definitely, if we don’t we will fall behind our competitors because, more and more, it’s needed by people to come here for economic reasons.

“That’s a market we are missing at this time because of it. It’s an additional feature we could be providing. Our competitors are doing it, and we’re not doing it. It would be wonderful if we can see the light. Let’s keep our fingers crossed that we continue to do well.”

The tax residency certificate initiative was developed as a means for expatriate residents and investors to prove they are domiciled here and complying with both local tax laws and those of their home country.

Under the initial plans, each certificate was to have its own Taxpayer Identification Number (TIN) in a bid to address concerns expressed by the likes of the OECD, which has in the past claimed The  Bahamas’ permanent residency product is in danger of being abused by tax evaders. It will confirm that the holder is a permanent resident of The Bahamas, and not liable to pay tax in their home countries.

To qualify for a tax residency certificate, which would have given successful applicants the right to reside in The Bahamas for up to three years, persons must stay in this nation for a minimum 90 days per year and not spend more than 183 days in any other country annually. A “substantial presence test” will be conducted if there are suspicions that persons are abusing this criteria.

Mr Sweeting, meanwhile, said ongoing economic turbulence and political uncertainty could make The Bahamas “more of a destination” for wealthy investors and real estate buyers attracted to its relative stability.

“I think 2026 is looking super promising,” he told Tribune Business. “I think we’ll do 25 percent more. When we look at days on the market, bidding wars we’ve been involved with, we’re seeing less than 30 days on the market for properties that are priced well. My team and I were in 13 bidding wars last year for properties priced under $500,000.

“When we look at just the framework of the market, there’s all indications there’s more business to be had. We’re very optimistic about the local market, both ends of the market, and I think we will do much better than we did in 2025.”