Starting a business in the Bahamas

The case for the Bahamas

The Bahamas suits a holding company, fund vehicle or family wealth structure that is run by a licensed provider, with a time zone that matches New York. There is no corporate income tax, no personal income tax and no withholding tax. Most international owners use an International Business Company, which the Registrar General's Department can register in 48 hours, or in 1 hour by express service. The government fee is USD 350 a year for an IBC with authorised capital up to USD 50,000 and USD 1,000 above that. Groups with revenue of EUR 750 million or more pay a 15% Domestic Minimum Top-up Tax.

The Bahamas suits less well a small trading company that wants a low cost base. VAT is 10%, an IBC pays business licence tax of BSD 2,500 a year when its revenue from outside The Bahamas is up to BSD 1 million, and exchange control approval from the Central Bank is needed for many transactions. The main drawback for an owner who wants to move is the price of residence: economic permanent residence needs a USD 1 million investment held for 10 years.

Last checked 10 October 2026. Each pillar is scored from 1 to 5 from official sources; the index score of 76 counts lifestyle (safety, cost of living, city scale) and connectivity one and a half times.

How a company is taxed

There is no corporate income tax. Groups with revenue of EUR 750 million or more pay a 15% Domestic Minimum Top-up Tax, and VAT is 10%. There is no personal income tax, capital gains tax, inheritance tax or wealth tax. Employees pay 4.65% national insurance up to a wage ceiling of BSD 3,510 a month.

Setting up and running a company

Fees shown are government registry fees only. Agent, licence, office, audit and professional costs are additional and usually make up most of the cost of setting up.

Life in Nassau

Flights

Lynden Pindling International Airport in Nassau has about 57 scheduled nonstop destinations, including seasonal routes, with direct flights to London Heathrow, Toronto and most large cities on the US east coast.

Exchange control

The Central Bank of The Bahamas must approve many foreign exchange transactions. An IBC owned by non-residents and trading outside The Bahamas can usually hold foreign currency accounts.

Wealth, inheritance and a family home

Inheritance and gift tax

The Bahamas has no inheritance, estate or gift tax, although stamp duty applies to some transfers of property.

Wealth tax

There is no net wealth tax, but owners of land and buildings pay an annual real property tax that depends on value and use, limited to BSD 150,000 for an owner-occupied home.

Capital gains

The Bahamas does not tax capital gains, though VAT and stamp duty can apply when property or shares in land-owning companies change hands.

Personal income tax

There is no personal income tax, and the only payroll charge is national insurance, at 4.65% for employees and 6.65% for employers up to a wage ceiling of BSD 3,510 a month.

Tax information exchange

The Bahamas has no tax treaties but has tax information exchange agreements with more than 30 jurisdictions, and its financial institutions report under the OECD Common Reporting Standard and FATCA.

Buying a home

Foreign buyers register purchases under the International Persons Landholding Act, VAT is charged at 2.5% on property sales up to BSD 100,000 and 10% above, and a home owner can apply for a home owner resident permit.

For individuals who become tax resident. Rules for people who keep another tax home differ.

Questions people ask about the Bahamas