The Bahamian government has initiated a significant tax reform aimed at empowering citizens to generate wealth through rental properties. Economic Affairs Minister Michael Halkitis announced during Thursday’s Senate session that legislation will be amended to exempt homeowners from real property tax on additional units in triplex developments where they occupy one residence.
This policy shift addresses longstanding concerns that taxation structures have discouraged small-scale residential investments. ‘We made a commitment that we will no longer require that tax,’ stated Senator Halkitis, emphasizing that current regulations have undermined the economic viability of such developments despite duplexes and triplexes being traditionally promoted as wealth-building vehicles.
The tax exemption forms part of a comprehensive housing initiative that includes three land resolutions debated in the Senate. Two measures focus on regularizing land ownership for individuals who have faced protracted struggles obtaining proper titles. A third resolution facilitates the symbolic transfer of 68 acres in Exuma—divided into 38.4-acre and 30-acre parcels—to the Housing Minister for $10, specifically designated for residential development.
‘These lands are being conveyed for the purpose of providing housing,’ Halkitis confirmed, noting the initiative will particularly benefit Exuma residents and returning diaspora members. Additionally, approximately 30 acres in Bozine Town will be transferred from the Treasury to the Ministry of Housing to resolve years-long legal disputes affecting land ownership.
The government is pursuing innovative construction approaches including modular building techniques and repurposing abandoned properties to address housing affordability challenges. Minister Halkitis revealed ongoing discussions with regional and international partners, including the Inter-American Development Bank, to improve housing finance mechanisms across The Bahamas and Caribbean region.