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Expensive Car Rentals ! ? ! Taxation ! ? ! Ownership Costs ! ? !

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Car rentals are expensive in the Bahamas. $70 to $100 per day is the norm for a well-maintained, functional vehicle that comes from a rental person who has a cell phone and available to help if needed. Yes, this high by US/International standards.

However, there is a good reason. The duty on cars is @70 %. This means if a car is bought in the states and delivered (@ $500) to the Bahamas the purchaser must pay the duty to clear customs. E.g: If the purchase price is $20,000 the duty is $14,000 to get it out of customs. So, that $20,000 car becomes a $34,500 car. A Nassau car dealer must pay this same duty. Now, do you understand why car rentals are so expensive?

There is no income tax in the Bahamas and real estate taxes are low by US standards.  There is a duty collected on all items shipped in….just about everything except concrete block, fish and some local vegetables. The % varies depending on the item….e.g. building supplies are low, electronics are high.

Gorgeous property is remarkably affordable on Eleuthera by Florida standards. As a result of the duty and freight and construction costs, I tell people who are planning on building a quality home on the island with full amenities to anticipate their building costs at 2 X Miami.

Ah, the joy of out-island living!!

Marty

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