The Office of the Prime Minister wishes to clarify the government’s proposed amendment to the owner-occupied property exemption as outlined in the 2025/2026 Budget Communication.
Under the existing framework, foreign homeowners could apply for the owner-occupied exemption by submitting an affirmation form confirming that the property is owner-occupied and not rented. There is currently no formal requirement regarding the minimum number of days a the homeowner has to be resident in the Bahamas to receive the Owner-Occupied exemption.
The proposed amendment introduces a more structured and transparent standard. Once enacted, foreign homeowners will be required to submit a revised annual affirmation, which willmust now include a declaration of the number of days they were physically resident in The Bahamas during the year. This change establishes two key thresholds:
- More than 90 days of residence in The Bahamas will qualify the homeowner for a partial exemption.
- More than 183 days of residence will qualify the homeowner for a full exemption.
This measure ensures greater accountability and alignment with international best practices, while continuing to support legitimate owner-occupiers who contribute meaningfully to the Bahamian economy and communities.
The government remains committed to transparency and effective tax administration. Further guidance will be provided to ensure a smooth transition for affected homeowners.