Pursuant to Section 47B of the Value Added Tax (Amendment) Act, 2024 (official reference), all International Business Companies (IBCs) and Domestic Companies (Companies) shall declare to the Department of Inland Revenue of The Bahamas, by 31 December of every year, the holding, acquisition, or disposition of any:
- Real Property located in the Bahamas: all lands, tenements, and hereditaments in The Bahamas together with all structures and other improvements, including machinery and equipment built into or attached to the soil; or any interest in a real property holding entity.
- Real Property Interest: refers to ownership or equity interests in an IBC or other company that directly holds real property located in The Bahamas. This includes common shares, preferred shares, convertible shares, debt instruments converted into shares, or ownership/equity units where the underlying asset is real property situated in The Bahamas.
Further to this annual regulatory obligation, IBCs/Companies are required to notify of any acquisition or disposal of real property or real property interests in The Bahamas within 15 days of the completion of the transaction.
WHAT NEEDS TO BE DONE?
For each IBC/Company in your portfolio, kindly complete, sign, and return the Real Property Declaration to [email protected] no later than 10 December 2025, to avoid the risk of delayed processing and potential administrative penalties for failing to report within the prescribed deadline.
Form Signature
In order for the Real Property Declaration in The Bahamas to be valid, the document must be signed according to the following rules.
- If the company has directors who are not nominees of OMC: the declaration may be signed by the Ultimate Beneficial Owner (BO), a shareholder, or a director.
- If the company’s directors are provided by OMC: the declaration must be signed by the BO or a shareholder.
- If signed by an intermediary: the declaration must be accompanied by a notarized power of attorney expressly authorizing them to decide on tax matters on behalf of the company.
At OMC Group we stand ready to assist you. Should you have further inquiries, kindly contact us at [email protected]
