The Bahamas is generally seen as one of the most pleasant options for where to live in the world. A tropical climate and easy-going way of life put this Caribbean nation on the top of most lists for those looking to relocate.
And tax rates run a close second to climate when it comes to naming what makes The Bahamas a favorite for the very wealthy and location-independent digital nomads.
Some countries that compete for this attention have relatively high nominal taxes but then create a system of complicated exemptions, credits and rebates to significantly reduce the effective tax rate.
The Bahamas approach to tax rates differs a bit. The headline numbers look very attractive: there is no personal income tax, capital gains tax, inheritance tax and a very low VAT rate. But there are relatively high rates of duty on imported goods and national insurance contributions on payroll.
This article will guide you through the taxes on everything from property to corporate income and will help inform an important part of your decision to relocate to The Bahamas.
Bahamas’ Attractive Tax Rates
Even amongst the stiff competition in the Carribean, The Bahamas offers one of the most appeali
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Taxation in the Bahamas
Taxation in the Bahamas is collected by the Government of the Bahamas. The Bahamas are considered a tax haven given the lack of income tax, capital gains tax, inheritance tax or company tax.[1] Government tax revenue is instead derived from consumption, property and import taxes as well as licence fees.[2]
The country's lack of income and corporate profit taxes has seen it become a popular drawcard for high net-worth individuals moving to the Bahamas and becoming residents for tax purposes to avoid high taxes in their home countries, including a number of high profile people such as Eugenie Bouchard and Sean Connery.[3][4] Tax residency certificates are issued to individuals who spend at least 90 days in the Bahamas and under days in any other single country[5] and purchase a property worth in excess of $ million.[6]
Tax revenues made up % of gross domestic product (GDP) in the Bahamas in [7] The Bahamas has not entered into any double tax agreements.[8]
Income and individual taxes
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The Bahamas does not impose income tax, inheritance tax or wealth tax. Social s