The Bahamas levies no taxes on capital gains, corporate earnings, personal income, sales, inheritance,or dividends.

This tax freedom is available to all resident corporations, partnerships, individuals and trusts.

Bahamas Investment Authority

Establishing a Financial Institution

Banks & Trust Companies

Insurance Industry

Mutual Fund Managers

Trust Formation

Incorporation Procedures

International Business Companies (IBCs)

Shipping Registry

Export & Import Trade

Agriculture

Freeport Free Trade Zone

Manufacturing in The Bahamas

Tourism Development

Real Estate & Second Homes

Labour Standards in The Bahamas

Infrastructure

Telecommunications

Legal Firms

The Bahamas has become a particularly favorable target for international investment. It has established generous legal incentives to attract foreign investors and has streamlined government bureaucracy for expeditious project approval. The Bahamas possesses an outstanding infrastructure for commercial and industrial activity, and offers a highly-skilled workforce. The professional community of accountants, international bankers, trustees, and investment specialists is large, diverse and highly skilled. There is also a full complement of respected and experienced law firms. The climate for foreign investment is particularly favourable to the finance industry, insurance, manufacturing, shipping, import & export trade, and of course, tourism development.

Freedom from Taxation

One of the most attractive elements of investing in The Bahamas is the tax-free status accorded to income. There are no taxes levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. This tax freedom is available to all resident corporations, partnerships, individuals and trusts.

Economic and Monetary Stability

Investors are also attracted to the stability of the economy, which is steadied by the solid value of the Bahamian dollar. This currency is pegged to the US dollar on a 1:1 ratio. US dollars and Bahamian dollars are used interchangeably throughout the island chain.

A Wealth of Investment Incentives

The inducement of a tax-free environment and a stable currency are enhanced by a series of investment incentives that provide relief from customs duties on approved raw materials, equipment, and building supplies, as well as allowing exemptions from business licenses and real property taxes for up to 20 years.

• The Hotels Encouragement Act exempts hotel developers from customs duties on raw materials and equipment. Exemptions from real property tax and licensing fees are also available.
• The Industries Encouragement Act exempts exporters from import duties on raw materials and equipment and business license fees. This act is of particular benefit for manufacturers.
• The Export Manufacturing Industries Encouragement Act provides an approved manufacturer who intends to export or annually exports at least 95% of the total approved products produced by the manufacturer is afforded duty-free import of raw materials, equipment and building supplies used in the manufacture of the product or facilities for the same and duty-free export of those products.
• The Bahamas Free Trade Zone Act
• The Agricultural Manufactories Act provides subsidies to agricultural businesses in the form of interest-free loans for the purchase of supplies and exemption from duties on a wide range of products, including building suppliers, processing materials and farm trucks. It also provides exemption from export taxes.
• Freeport on Grand Bahama Island gives businesses in the free trade zone exemption from taxes on profits, capital gains, inheritance, income, earnings, distributions, gifts, or on imported and exported goods. In addition, import duties and taxes on real estate have been waived through August 3, 2015.
• The Tariff Act provides exemptions to approved manufacturers for the import of capital equipment and raw material for garment manufacturing, food processing, the production of handicraft and souvenir items, and cottage industries.
• The Spirit and Beer Manufacture Act provides duty-free import of raw material and equipment for spirits and beer manufacturers.

No Exchange Controls/Free Repatriation of Profits

In accordance with terms of the International Monetary Fund Agreement, The Bahamas has no restriction on current account transactions. Additionally, there are no restrictions on the free repatriation of profits. Exchange control is administered by The Central Bank. The Bank, however, delegates to its authorized dealers the power to approve allocations of foreign exchange for certain payments.

Accessible International Financing

The Bahamas is associated with several organizations that ease access to financing and provide important safeguards for investors. The US Government's Overseas Private Investment Corporation (OPIC), for example, makes direct financing and loan guarantees available to foreign investors. The Multilateral Investment Guarantee Agency is a World Bank unit and parent of the Multilateral Investment Guarantee Convention, which provides protections similar to those of OPIC. The Bahamas also recently agreed to become a party to the convention on the settlement of investment disputes.

Facilitated Incorporation and Registration

The International Business Companies Act of 1989 and the Companies Act of 1992 have made it easier than ever before to establish a commercial presence in The Bahamas.

Flexible Immigration Policy

Necessary work permits for key personnel are readily granted. Businesses requiring work permits for other than key personnel are encouraged to advise The Bahamas Investment Authority of their needs at an early stage in their discussions.

Accelerated consideration for annual or permanent residence is given to major investors and to owners of residences valued in excess of $500,000. All international persons owning residences in The Bahamas are eligible to receive, upon application to the Director of Immigration, a "Home Owners Card." The card does not provide residency status for tax purposes; however, it facilitates entry into The Bahamas and entitled the owner, his/her spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card.

Copyright (c) 1995-2010 InterKnowledge Corp. All rights reserved