GOVERNMENT STAMP DUTY ON PROPERTY CONVEYANCES

• Up to and including $20,000.00 - 2%
• $20,001 to $50,000.00 - 4%
• $50,001 to $100,000.00 - 6%
• $100,001 to $250,000.00 - 8%
• $250,001 and over - 10%

Bahamians and permanent residents who have the right to work are exempted from Government Stamp Duty on a home purchase, provided they are first time home owners and the home is valued at below $250,000. This is subject to application approval.

PROPERTY TAX

A graduated tax is payable on the conveyance of all real property based on the following value:

In respect of owner-occupied property:

• The first $250,000 is tax-exempt.
• On that portion in excess of $250,000 and less than $500,000 the rate of tax is 0.75% of the market value of the property.
• On the portion in excess of $500,000 the tax rate is 1% of the market value of the property.
• The maximum annual tax shall not exceed $35,000.00.

In respect of unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act:

• Upon that part of the market value that does not exceed $3,000 a fee of $30.00
• Upon that part of the market value which exceeds $3,000 but does not exceed $100,000 a tax rate of 1% per annum of the market value of the property.
• On the portion in excess of $100,000 the tax rate is 1.5% of the market value of the property.

In respect of any other property:

• Upon that part of the market value that does not exceed $500,000 a tax at the rate of 1% per annum of the market value.
• Upon that part of the market value in excess of $500,000 a tax at the rate of 2% of the market value of the property.

Market value is defined as the amount the property would realize, if sold in the open market, without any encumbrances or restrictions. If the return is not filed, the owner is guilty of an offense, and upon conviction thereof, may be fined up to $3,000. Persons knowingly making false statements may be liable upon conviction to a fine of up to $3,000 or six months imprisonment, or both fine and imprisonment. If the tax is not paid on or before the last day the tax becomes due, a 10% surcharge is added.In the case of an extension of time, the Chief Valuation Officer may postpone the date on which the tax is payable in a particular case, by notice in writing.

Exemptions

Property owned by Bahamians and situated in the FamilyIslands is exempt from property tax. Property approved as commercial farm land (by the Ministers of Agriculture, Trade and Industry and Finance) is eligible for property tax exemptions.

Also exempt from property tax are:

• Unimproved property owned by Bahamians, meaning property without physical additions or alterations, or any works benefiting the land which have not increased the market value thereof by $5,000 or more;
• Places of religious worship; school buildings and their gardens and playing areas;
• Property owned by foreign governments;
• Property owned by foreign nations used for consular offices or residences of consular officials and employees;
• Property used exclusively for charitable or public service from which no profit is derived

PERMANAENT RESIDENCY

Application for Permanent Residency

Major international investors and owners of residences valued at $500,000 receive speedy consideration for annual or permanent residency permits.

Applicants must be of good character, show evidence of financial support and commit in writing they wish to live permanently in the Bahamas. Wives and dependent children (under 18 years) usually resident in a household may be endorsed on the certificate when the original application is made. For details contact:

Bahamas Investment Authority
Office of the Prime Minister
Cecil Wallace Whitfield Centre
PO Box CB 10980
Nassau, Bahamas
Tel.: 242 327-5970

INVESTMENT POLICY

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 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 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 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.