The Same Budget, Three Very Different Outcomes
One of the questions I hear most often from international buyers is how Nassau stacks up against the alternatives. Miami is familiar territory for most North American and Latin American investors. Turks & Caicos has grown its profile significantly over the past decade. Both are legitimate comparisons. But when you put a million dollars on the table and look at what each market actually delivers, Nassau pulls ahead in ways that aren't immediately obvious from the outside.
This comparison focuses on the primary market variables that matter most to a buyer at the $1 million price point: what the property actually looks like, the tax structure, rental income potential, capital appreciation, and pathways to residency.
Nassau: A Detached Home with Water and Room to Live
In Nassau, $1 million is a serious budget that opens doors to detached residential properties in some of the island's most established neighborhoods. In Sandyport — a private gated community on the western side of New Providence — that budget typically acquires a three- or four-bedroom home ranging from 2,500 to 3,500 square feet, often with direct canal frontage and a private dock. These are freestanding houses with gardens, garages, and the ability to keep a boat steps from your back door.
Along Eastern Road, one of Nassau's most prestigious addresses, a similar budget can secure a property with ocean or harbor views, significant land, and the architectural character the corridor is known for. Properties in this range on Eastern Road often sit on lots of 10,000 to 20,000 square feet or more, a scale that simply has no equivalent at this price point in Miami or Turks & Caicos.
The defining characteristic of Nassau at the $1 million level is that you are buying a home, not a unit. You have privacy, outdoor space, and a property that functions as a primary or secondary residence rather than an investment vehicle with living quarters attached.
Miami: A Small Condo in a Dense Urban Market
Miami at $1 million is a fundamentally different proposition. In Brickell — Miami's primary financial district and one of its most desirable urban neighborhoods — that budget delivers a one- or two-bedroom condominium of approximately 800 to 1,200 square feet. Waterfront access at this price point is not realistic; waterfront condominiums in Brickell and Edgewater start considerably higher and often run well past $2 million for meaningful views and finishes.
What you receive at $1 million in Miami is urban density: proximity to restaurants, financial services, and the South Florida lifestyle. But the property itself is compact, shared-structure, and subject to a cost structure that erodes returns more aggressively than most buyers anticipate. HOA fees in Brickell high-rises commonly run $1,500 to $3,000 per month. Combined with property taxes in the range of 1.5% to 2% of assessed value annually, the carrying costs on a $1 million Miami condo can exceed $40,000 per year before any maintenance or management expenses.
Florida has no state income tax, which is a genuine advantage over many other US markets. But federal capital gains taxes apply in full — a long-term rate of 15% to 20% on appreciation for most investors, with potential additional exposure through the net investment income tax. On a property that doubles in value, a US-taxpaying investor in Miami faces a tax bill that simply does not exist in Nassau.
Turks & Caicos: Limited Inventory at a Premium
Turks & Caicos has built a strong luxury reputation around Grace Bay Beach, which consistently ranks among the world's best. That reputation commands pricing that leaves very little room at the $1 million level. In the Grace Bay area, $1 million today more realistically reaches a studio or one-bedroom condominium of 600 to 900 square feet — limited inventory, limited size, and limited upside relative to entry cost.
The tax structure in Turks & Caicos is favorable in some respects: there is no income tax and no capital gains tax. However, stamp duty — payable on property purchases — runs at 12% of the purchase price for foreign buyers. On a $1 million acquisition, that represents $120,000 in transactional costs at closing, a significant drag on day-one equity that Miami and Nassau do not impose at comparable rates. Nassau's stamp duty structure is considerably more favorable at lower price points, and The Bahamas has no equivalent of TCI's tiered foreign buyer surcharge.
Rental demand in Grace Bay is real, driven by high-end tourism, but supply has grown substantially in recent years and the short-term rental market is increasingly competitive. The combination of high entry costs, stamp duty drag, and compressed cap rates makes the math more challenging at $1 million than the lifestyle appeal might suggest.
Tax Comparison: Where Your Returns Actually Go
The tax environment is where Nassau's advantage becomes most quantifiable. The Bahamas imposes no income tax, no capital gains tax, no inheritance or estate tax, and no wealth tax. Annual real property tax is modest and capped for owner-occupied properties. For an investor or second-home buyer who holds a Nassau property for ten years and sells at a significant gain, the full appreciation stays in their hands.
In Miami, a non-US investor still faces US federal tax obligations on rental income and capital gains from US-sited real estate under FIRPTA rules. A US citizen or resident buying in Miami pays federal capital gains tax on any appreciation, plus potential state-level complications depending on their domicile. The carrying costs — property taxes, HOA fees, insurance — are also substantially higher as a percentage of asset value than Nassau.
Turks & Caicos eliminates income and capital gains taxes but recovers a significant portion of that advantage through the 12% stamp duty on purchase. For a buyer planning a five-year hold, that upfront cost substantially reduces the effective return compared to a zero-tax environment at entry and exit like Nassau provides.
For a detailed breakdown of the Bahamas tax environment and how it interacts with residency planning, see my investment case for Nassau.
Rental Yields and Appreciation
Nassau's luxury rental market is driven by both long-term expat tenants — finance professionals, business owners, diplomatic personnel — and short-term vacation rentals during the November-to-April peak season. Canal-front homes in Sandyport and well-positioned properties on Eastern Road can achieve gross rental yields in the range of 5% to 7% annually, with strong occupancy during peak months. The short-term rental regulatory environment in The Bahamas remains more accessible than many competing jurisdictions.
Nassau property values in the luxury segment have appreciated at approximately 8% annually through 2024, with projected CAGR in the 4% to 5% range through 2028 as infrastructure development, new hotel projects, and sustained demand from international buyers continue to support the market.
Miami condominiums in Brickell have historically appreciated, but the pace of new supply — several thousand condominium units are under construction or planned in the Miami urban core — creates a more competitive environment for resale and rental pricing. Turks & Caicos appreciation has been strong in the past but is heavily concentrated in the top tier of the market, which sits well above the $1 million entry point.
Residency Pathways
For buyers interested in establishing residency alongside their real estate investment, Nassau offers a clear and well-established program. The Bahamas Economic Permanent Residency requires a property purchase of $750,000 or more to qualify for expedited processing. At $1 million, a Nassau buyer easily clears this threshold and can pursue permanent residency that allows indefinite living and working rights in The Bahamas with no annual minimum stay requirement.
Miami real estate purchases do not independently confer US residency or immigration status. The US EB-5 investor visa program requires a minimum $800,000 investment in a targeted employment area project — not direct property ownership — and involves a multi-year adjudication process with no guarantee of approval.
Turks & Caicos offers residency for property owners but the program is less defined and less advantageous than the Bahamian EPR for most buyers. TCI is a British Overseas Territory, not an independent nation, and its residency status does not confer the broader benefits of Bahamian permanent residency.
For a full overview of the Bahamas residency program, requirements, and process, see my guide to Bahamas permanent residency.
Side-by-Side Summary
| Factor | Nassau, Bahamas | Miami, Florida | Turks & Caicos |
|---|---|---|---|
| Property Type | 3–4 bed detached home, 2,500–3,500 sq ft, canal/ocean frontage possible | 1–2 bed condo, 800–1,200 sq ft, no waterfront | Studio or 1 bed condo, 600–900 sq ft |
| Income Tax | None | Federal income tax applies | None |
| Capital Gains Tax | None | 15–20% federal (plus FIRPTA for non-US investors) | None |
| Stamp Duty / Transfer Tax | Moderate (tiered, lower at $1M) | Minimal | 12% of purchase price |
| Annual Carrying Costs | Low (modest real property tax, no HOA in many cases) | High ($40,000+ annually in taxes and HOA) | Moderate |
| Gross Rental Yield | 5–7% | 3–5% (compressed by HOA/tax drag) | 4–6% (competitive market) |
| Residency Pathway | Yes — Economic Permanent Residency at $750K+ | No direct pathway from property ownership | Limited |
| Dock / Outdoor Space | Often included | None | None at this price point |
The Conclusion
The question of where to deploy $1 million in real estate in this region ultimately comes down to what you are trying to accomplish. If the goal is to maximize what the property itself delivers — size, privacy, outdoor space, water access — Nassau is not a close competition. If the goal is urban proximity within the United States, Miami makes sense on its own terms, but investors should go in clear-eyed about the tax and cost structure. If the goal is the Grace Bay lifestyle in Turks & Caicos, $1 million is increasingly a challenging entry point given what stamp duty takes off the top.
For buyers combining lifestyle objectives with investment discipline — who want a property that functions beautifully as a home, generates income, appreciates in a favorable tax environment, and potentially opens a residency pathway — Nassau at $1 million delivers more than any comparable market at that budget. I've worked with buyers who came to Nassau after seriously considering Miami and TCI, and I haven't had one tell me they wished they'd gone the other direction.
I'm Aaron Davis, VP & Partner at BE Luxury Collection and Associate at HGC Christie's International Real Estate in Nassau. If you're evaluating where to place capital in this region, I'm glad to give you a candid view of what the market looks like on the ground.