The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Realtors yesterday confirmed they have recommended the Government correct “inconsistencies” with its real property tax reforms that could result in Bahamians being taxed at a higher rate than their foreign owner counterparts.

David Morley, Morley Realty's broker/owner, told Tribune Business via e-mail that the Government’s 2026-2027 Budget plan to create a new “foreign owner-occupied” property tax category would impose a “flat rate” 0.625 percent levy on those who qualify with no exemption. This rate does not change according to valuation.

However, he pointed out that this would leave middle and upper class Bahamian owner-occupied properties paying a higher 1 percent rate on the portion of their value greater than $500,000 - a discrepancy that he and the Bahamas Real Estate Association (BREA) have pointed out to both the Ministry of Finance and Department of Inland Revenue.

Suggesting that it makes no sense for Bahamians to “pay a higher rate”, Mr Morley said the issue has been raised by BREA with both Simon Wilson, the Ministry of Finance’s financial secretary, and Shunda Strachan, the Department of Inland Revenue chief.

“The point we already raised… is that the new category for foreign owned owner-occupied property is a flat rate of 0.625 percent with no exemption,” he explained. “For a Bahamian there is the owner-occupied exemption, which they are increasing in the Bill, but the remainder is a scale that starts at 0.625 percent and then increases to 1 percent.

“So how can they expect a Bahamian to pay a higher rate? We suggested that the Bahamian rate should be amended to reflect the new foreign owned owner-occupied property flat rate above the Bahamian exemption at a flat rate of 0.625% too.”

Carla Sweeting, BREA’s outgoing president, yesterday confirmed the push for equality between Bahamian and foreign owner-occupied tax rates. “We have discussed the proposed amendments that are in the Budget, and there are some inconsistencies we have pointed out,” she told this newspaper.

“We have not done anything formal yet. We simply pointed it out. We’re hoping that when they see the inconsistencies they’ll correct [the legislation] before they pass it.” Ms Sweeting said BREA and the real estate community will now wait to see if the necessary changes are made before deciding whether further action is required.

“We have notified the Department of Inland Revenue of the inconsistencies we have found, and we are just hoping they will correct them,” he added. “This way we don’t have ambiguities, we don’t have the backlash coming from the public, and it’s good business practice. It’s very important, very important. It’s a necessity; absolutely.

“We have to protect our Bahamian people, and we have to preserve their right to invest and get a return on their investment, and we should not be giving all the concessions to the foreigners. Bahamians should not be subject to these things. It’s important that we look after our people first.”

Mr Morley said Mr Wilson had indicated the Department of Inland Revenue had received BREA’s recommendations and was working to address them.

Meanwhile, governance reformers yesterday voiced concerns that proposed reforms to the Environmental Impact Assessment (EIA) regulations could make public consultation optional during the review process.

The Organisation for Responsible Governance (ORG) said that, among its primary concerns, is a proposed change to regulation seven of the EIA Act 2020 that would allow public consultation to be determined on a case by case basis, rather than maintaining it as a standard part of the environmental review process. It also voiced fears about the proposed removal of mandatory public notice requirements when EIAs and Environmental Management Plans (EMPs) are submitted for review.

ORG said the proposed amendments come after The Bahamas signed The Escazú Agreement in June 2025. This is the region's first legally binding treaty focused on access to environmental information, access to justice in environmental matters and public participation in environmental decision-making.

The Bahamas recently hosted the fourth meeting of the Conference of the Parties (COP4) to the Escazú Agreement, which brought together regional governments, civil society organisations and international partners to advance environmental rights across Latin America and the Caribbean.

ORG said COP4 emphasised the importance of transparency, accountability and meaningful citizen engagement in environmental governance. Against this backdrop, it added that The Bahamas’ proposed amendments represent not just a step “but leaps away” from the principles recently championed before international stakeholders. 

"There's a lot in these proposed amendments that moves environmental management in the right direction," said Mat Aubry, ORG’s executive director. "But there is a concern about changes that could make public consultation optional rather than expected. The people who will live with the impacts of a development should have a meaningful early stage opportunity to understand what's being proposed, ask questions and share their perspectives.

"Good consultation isn't about slowing projects down. In fact, it often helps projects succeed in the long run. When people are engaged early, concerns can be addressed before positions harden, misinformation is reduced and decisions are generally stronger because they're informed by both technical expertise and local knowledge.

“At the end of the day, this is really about trust. People don't have to agree on every project, but they should have confidence that decisions are being made transparently, consistently and with opportunities for meaningful public input."

ORG praised changes that include stronger environmental screening; increased attention to environmentally sensitive areas; and the introduction of operational environmental management plans. “However, we believe additional safeguards can ensure transparency and public trust remain central to environmental decision-making,” it added.

“During a time when public trust in institutions is on a global downward spiral, and mechanisms that support transparency are needed more than ever, amendments such as these completely oppose good governance, effective and fair democratic processes and sustainable national development. 

“If The Bahamas wishes to continue to position itself as a regional leader in environmental governance, our policymakers must uphold the principles of openness, accountability and fair and inclusive public participation - all of which are central to both democratic governance and the country's commitments under the Escazú Agreement,” ORG continued.

“ORG urges the Government to carefully consider the impacts of these amendments, and to ensure that communities remain an integral part of environmental decision-making processes. Passage of regulations that fully support environmental transparency and protection gives The Bahamas the opportunity to live up to international best practices.”