Private island lists for $118 million in the Bahamas, a prestige property buyer's paradise

Whoever said nothing was certain except death and taxes hadn’t been to the Bahamas.

This group of islands in the Atlantic Ocean, about 300 kilometres south-east of Miami, is famous not just for its natural beauty – it’s also a renowned tax haven.

Edward de Mallet Morgan, a partner in Knight Frank’s global super-prime residential team, says the former British overseas territory offers a wide range of properties, from sprawling homes in gated developments to beachfront residences, golf course estates and ultra-luxury apartments. Many islands are cays or coral reef islands.

Knight Frank is marketing Little Pipe Cay, a private island in the Exuma island chain with a sumptuous, nine-bedroom main residence, as well as several smaller houses and cottages.

There’s abundant space for small and large boats, and nearby moorings are available for super-yachts.

The property has a guide of $US85 million, or about $118 million.

Current market

There are no official figures, but there is general agreement that the property market nose-dived after the global financial crisis. The luxury sector appears to be rebounding, however.

“There are people from all over the world moving to the Bahamas, usually because of its status as a tax haven, and because there are some excellent properties. Access is easy because Nassau is an international airport,” Morgan says.

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He predicts the combination of instability in global markets, rising taxes in Europe and the US and the Bahamas’ reputation as a safe place to live will lure buyers.

But there are signs the tide is turning on its tax status. The Bahamas was placed on a European Union “grey list” recently, which could result in restrictions on EU investment funds unless its tax policies are reformed. Another downside: hurricanes.

Can Australians buy in?

“Yes, there are lots of Australian owners, James Packer being the most high profile,” Morgan says.

There are no restrictions on foreigners buying in. A 10 per cent deposit is paid on exchange, the balance due on completion. Luxury properties attract 10 per cent stamp duty and buyers also pay legal costs, VAT and registration.

What you can buy for …

$3.59 million

A four-bedder in Nassau, Bahamas.
Photo: Knight Frank

A four-bedroom furnished penthouse in the capital, Nassau, surrounded by tropical gardens with pools, gym and tennis courts.

$8.08 million

A five-bedder in Albany, Bahamas.
Photo: Knight Frank

A newly built five-bedroom, five-bathroom house with swimming pool in a gated community near the Albany Golf Course.

$12.85 million

Lumber Cay, Bahamas.
Photo: Knight Frank

Lumber Cay, a 10-hectare private island in a protected basin in the Exuma cays, accessible by boat, helicopter and seaplane.