Save $15,000–$40,000
on Your Build
Most first-time Bahamian homeowners don't know they qualify for duty concessions on construction materials. This is one of the most valuable benefits you will ever get — and most people miss it.
What Is the Duty Exemption?
$15k–$40k
Potential savings
Depending on project size and materials imported
2–4 wks
Processing time
Apply before you order any materials
Under the Tariff Act, first-time Bahamian homeowners can apply for duty concessions on construction materials for their primary residence.
The concession is administered by the Ministry of Finance and covers structural materials including cement, lumber, roofing, electrical, plumbing, and windows and doors. The key rule: you must apply and receive approval before importing any materials. There is no retroactive claim.
Who Qualifies?
How to Apply — Step by Step
Confirm eligibility
You must be a Bahamian citizen purchasing or building your first home for owner-occupation. The property cannot be for rental or commercial use.
Get your plans and quotes ready
You will need signed architectural plans from a licensed Bahamian architect and written quotes from your contractor for all materials you intend to import.
Visit Customs Department
Go to the Customs Department, Custom House, Bay Street, Nassau. Tel: (242) 322-3598. Ask for the First-Time Homeowner Duty Exemption application form.
Submit your application
Submit all required documents. The application is reviewed by the Ministry of Finance. Processing typically takes 2–4 weeks.
Receive your concession letter
You receive an official concession letter from the Ministry of Finance listing the approved exemptions. Keep this letter — you will need it at the port when clearing materials.
Import materials using your concession
Present your concession letter to Customs when clearing each shipment. Duty will be waived on approved materials. Do not import before receiving this letter.
⚠️ Critical: Apply Before You Import Anything
The exemption cannot be claimed retroactively. If you buy materials before receiving your concession letter, you will pay full duty. Apply as soon as your land is secured and plans are ready.
What to Bring
Contact Customs Department:
Custom House, Bay Street, Nassau
(242) 322-3598
Customs Duty on Construction Materials
Rates are approximate. Always verify current rates with Customs before importing. All materials are also subject to 10% VAT.
* “Exempt?” column shows eligibility for First-Time Homeowner Duty Exemption. Tile, paint, HVAC, and fixtures are not covered.
Solar Panels: 0% Duty
0% Duty
on panels & batteries
$8k–$15k
typical installed cost (3kW)
4–7 years
payback through BPL savings
Building new? This is the best time to go solar.
When constructing a new home, you can integrate solar into the roof structure, run conduit during framing, and orient the roof for maximum panel efficiency. Adding solar later is more expensive and disruptive. A 3kW system handles the average Bahamian home. Pair with battery storage for full grid independence.
BPL operates a net metering program — excess power is sold back to the grid. Contact BPL: (242) 302-1000
How much will solar save you?
Solar panels are duty-free in the Bahamas. Calculate your savings including duty exemption.
VAT — What You Need to Know
Construction services
10% VAT applies to all contractor work. If your contractor is VAT registered (billing >$100k/year), they must charge VAT on their invoices.
Materials purchased locally
10% VAT is included in the price of materials at most Nassau hardware stores. Always confirm with your supplier.
Request VAT receipts
Always get VAT receipts from contractors and suppliers. You need these for your financial records and any future claims.
Cannot reclaim VAT
Homeowners building a personal residence cannot currently claim back VAT. Only VAT-registered businesses can reclaim input VAT.
What Gets Applications Rejected
Apply for Exemption Before You Budget
If you qualify for the first-time homeowner duty exemption, your total project cost drops by $15,000–$40,000. A lower project cost means a smaller mortgage needed — which means lower monthly payments for the life of your loan. Apply for duty exemption as one of your first steps, before finalising your budget or applying for a mortgage.
$180,000
Without exemption
total project cost
− $25,000
Duty savings
if exemption approved
$155,000
With exemption
lower mortgage needed