The Tax Appeal of Moving to the Bahamas

(This article is exclusive to our website)

The Bahamas' residency-by-investment program has been flagged by the OECD as a high-risk scheme for circumventing the Common Reporting Standard (CRS). Does this mean the Bahamas is a tax haven? Let’s first take a closer look at this Caribbean nation’s residency-by-investment program:

• Real Estate Investment: Invest $500,000 in local property; for investments above $1.5 million, the application process is expedited.
• Business Investment: Invest $500,000 in a local business that benefits the Bahamian economy.

In general, permanent residency can be obtained within three months. After holding permanent residency for 10 years and residing in the Bahamas for at least six years, applicants are eligible to apply for Bahamian citizenship. A Bahamian passport offers significant advantages, including visa-free access to China, the EU, conditional access to the U.S., and Canada.

Compared to its neighboring countries, the Bahamas' immigration program is relatively niche. This is primarily due to its higher financial threshold (neighboring countries often require as little as $100,000) and the fact that the program grants permanent residency rather than citizenship outright. However, the Bahamas’ higher price tag is not without justification.

In addition to the prestige of a Bahamian passport, the Bahamas offers significant tax advantages. Unlike some countries where tax benefits are only available to those who reside outside the jurisdiction, the Bahamas is a true tax haven whether or not you live there. This makes Bahamian residency not just a status symbol but a practical solution for high-net-worth individuals seeking a long-term, tax-free lifestyle.