One of the most attractive elements about investing in The Bahamas is the tax free status accorded 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.
  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.
   
  The inducements 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 real property taxes for up to 20 years.
  In accordance with terms of the International Monetary Fund Agreement, The Bahamas has no restrictions 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 authorised dealers the authority to approve allocations of foreign exchange for certain payments.

The Government’s proactive econo-mic growth and development poli- cies are guided by The Bahamas Investment Authority (BIA), established to “cut red tape and lay out the red carpet” for investors. Operating from the Office of the Prime Minister, the BIA has been designated a “one-stop shop” designed to simplify investing in The Bahamas. The agency has a four-fold mandate to:

  • develop investment policies;
  • promote investment;
  • evaluate project proposals;
  • monitor projects and provide support.

Proposals to establish a business are submitted to the BIA and approvals come through this agency, which coordinates with other arms of Government regarding investment matters.
 
  The Bahamas is associated with organisations that ease access to financing and provide important safeguards for investors. The U.S. 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’s. The Bahamas also recently became a party to the Convention on the settlement of investment disputes.

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

Accelerated consideration for annual or permanent residences is given to major investors and 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 entitles the owner, his/her spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card.