Taxation in the Bahamas
Part of a series on |
Taxation |
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An aspect of fiscal policy |
Taxation in the Bahamas is collected by the
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 184 days in any other single country[5] and purchase a property worth in excess of $1.5 million.[6]
Tax revenues made up 22.4% of
Income and individual taxes
The Bahamas does not impose income tax, inheritance tax or
Property taxes
Property tax is imposed on all properties, with the rate for residential properties dependent on whether the home was occupied by its owner for at least six months of the calendar year, under reforms introduced in 2019.[9] If the residency requirement is met, the first $250,000 of property value is exempted, while the value up to $500,000 is taxed at a rate of 0.75% and at 1% on value in excess of $500,000.[8] If the residency requirement is failed, a 1% tax is imposed for the value up to $500,000 of assessed value and 2% for the value in excess of $500,000. Prior to 2019, property taxes were capped annually at $500,000.[2]
Furthermore, stamp duty is payable on the transfer of realty and marina slips, at 2.5% for valuations under $100,000 and 10% over $100,000.[9]
Corporate taxes
There is no corporate tax,
Value added tax (VAT)
A
Import duties
Import duties are applied to a wide variety of goods being brought into the Bahamas. The
References
- ^ Kenber, Billy (6 March 2019). "The world's most popular tax havens". The Times.
- ^ a b Beers, Brian (13 October 2019). "Why Is the Bahamas Considered a Tax Haven?". Investopedia.
- ^ Forrest, Maura (5 September 2018). "Canadian tennis star Eugenie Bouchard has moved to the Bahamas and some Quebec politicians don't like it". National Post.
- ^ "The Bahamas: hurricane-prone tourist paradise". France24. 2 September 2019.
- ^ Gonclaves, Pedro (29 May 2019). "Bahamas to give tax residency certificates to permanent residents". International Investment.
- ^ Arcibal, Cheryl (1 September 2019). "Got US$95 million? Bahamas' largest private island with its own private jet and landing strip is on sale". South China Morning Post.
- ^ McCartney, Paige (28 March 2018). "Two percent increase in Bahamas, LAC tax revenues projected". The Nassau Guardian.
- ^ a b c "International Tax: Bahamas Highlights 2019" (PDF). Deloitte. January 2019.
- ^ a b "The Bahamas Tax Rates". 3 April 2019.
- ^ Adams, Jane. "Bahamas - Indirect Tax Guide". KPMG.
- ^ "Bahamas increasing VAT to 12% by July 1". Jamaica Observer. 1 June 2018.
- ^ Nagle Myers, Gay (2 January 2015). "Bahamas hotel guests get tax cut". Travel Weekly.
- ^ Storey, Ken (2 July 2018). "The Bahamas just got a whole lot more expensive thanks to dramatic increases in taxes and fees". Orlando Weekly.
- ^ "Rates and Duties of Frequently Imported Items". Ministry of Finance. July 2019.