Investing in The Bahamas
The Bahamas remains the leading tourist destination in the Caribbean region. In 2019, The Bahamas welcomed 7.216 million visitor arrivals, the most ever for the country, and a 9 percent increase compared to 2018.
Several large hotels have completed expansion projects in Nassau/Paradise Island, and new airlines have started services to the Bahamas. Nearly half of the country’s GDP is derived from tourism, and tourism-related industry.
The Bahamas is today one of the world’s principal international financial centers. The country’s progressive legislation and regulatory structure, its highly skilled workforce, and its responsive government have attracted many of the world’s largest and most prestigious financial institutions. Convenient air transportation, modern infrastructure, including an excellent telecommunications system, all support efficient business operations.
The Bahamas offers a varied and attractive package to the potential investor: a stable democratic environment, relief from personal and corporate income taxes, timely repatriation of corporate profits, proximity to the United States with extensive air and communication links, a good pool of skilled professionals, and preferential access to major markets.
In The Bahamas there are no income, capital gains, wealth, inheritance, succession, or gift. Tax revenue in The Bahamas is derived primarily from VAT, import duties, stamp duties, real property tax, casino taxes and license fees.
Government Investment Incentives
Investment incentives under the following Acts include exemption from the payment of customs duties on building materials, equipment and approved raw materials; and exemption from real property taxes for periods up to twenty years:
- The Hotels Encouragement Act
- The Industries Encouragement Act
- The Bahamas Vacation and Time Sharing Act
- The Free Trade Zone Act
- The Tariff Act
- The Export Manufacturing Industries, Encouragement Act
- The City of Nassau Revitalization Act
- The Family Island Development Encouragement Act
Investors may acquire publicly owned lands for approved developments on concessionary terms
Investors may acquire low cost space for lease for industrial enterprises Government will provide special training and retraining for Bahamian workers to ensure the continuing availability of a highly skilled labour force. Click here for more information on Government Investment Incentives.
PREFERENTIAL TRADE INCENTIVES
Business located in The Bahamas may benefit from the following preferential trade arrangements:
- The Lome Convention
- General system of Preference (GSP)
- Caribbean Basin Initiative.