Whenever incorporating a Bahamas company as an offshore investor, your choices extend over two main options; one, incorporating a Bahamas offshore company or legal entity (offshore trust, offshore foundation, captive insurance, offshore bank) or two, investing offshore in the Bahamas within a tax free and business oriented environment. With regard to the latter, the islands of the Bahamas have appealed to many an offshore investor as a result of a thriving tourism industry, countless business opportunities, the close proximity of the Bahamas to the United States and the excellent external relations which exist between the two countries, a high standard of living and an attractive fiscal regime.

Our company has collaborated with established international financial service providers who are government approved agents. Dual nationality programs create avenues for foreign residents to invest overseas as citizens and avail business oriented tax conditions. Two credible second citizenship programs are found in Dominica and St. Kitts and Nevis. For trusted support with applying and getting other offshore financial services such as US LLC registration, asset planning and Dominica Citizenship don’t hesitate to contact us.

Hardly do offshore havens like The Bahamas go unnoticed for sound governance, social stability and free markets which encourage foreign and offshore investment. Of note too and which favor Bahamas offshore investing, are the tax incentives in the form of exemptions and holidays granted to foreign entrepreneurs, including less restrictions on land ownership. For instance, in 1994 the International Persons Landholding Act was introduced and replaced the Immovable Property Act under which foreign nationals were only able to inherit, transfer and purchase land by first seeking approval from the necessary authorities. This move proved essential in presenting non Bahamians with a less red-taped and more inviting environment for doing business while it fueled the real estate sector and Bahamas offshore investing.

In many ways, local Bahamas companies receive similar fiscal benefits as companies created principally for offshore trade. As such, the fiscal environment for Bahamas offshore investors is one that frees companies from direct taxation; meaning that there are no taxes on corporate and personal income, profits, payrolls, dividends, capital gains, royalties, sales tax and estate tax, thereby enabling businesses to expand and significantly lower their tax burden. As a result, for the Bahamas offshore investor, tax expenditure is generally incurred from property/real estate tax, stamp duty, import duty and business license fees.

The typical arrangement for offshore companies in any offshore jurisdiction would be exemption from all local taxes on the condition that the offshore company, having been incorporated in that jurisdiction, conducts its business solely outside the jurisdiction. For

not limited to only incorporating a Bahamian offshore company or establishing an offshore trust or foundation. As a foreign or offshore investor considering The Bahamas, you are also looking at the possibility of investing in The Bahamas within a tax free environment which is very similar to that obtained from a Bahamas offshore company.

The absence of direct taxes, however, is leveled out by elevated tariffs which contribute around 65% of revenue raised by The Bahamas. At 35%, import duties are considered fairly high, but rendered less burdensome by many tax exemptions given by the Government, such as on computer hardware, which since 1998 is taxed at 0%. Furthermore, given the heavy inflow of FDI in The Bahamas, investment packages are integral to striking a balance between what at first glance would appear to be a situation where direct taxes do not exist but are engulfed in import duties. To this end, under three major acts, namely, the Hotel Encouragement Act, the Agricultural Manufacturers Act and the Export Manufacturing Industries Encouragement Act attractive investment incentives are offered for sectors within the economy. As such, relief on customs duties is given on raw materials, building supplies to hotel developers, who also receive a twenty year exemption from property tax and business license fees and equipment for hotel developers; to manufacturers who export at least 90% of qualifying products on a yearly basis and import raw materials, equipment and building supplies for production purposes. Assistance is also given to companies involved in agriculture as interest free loan subsidies.

exemption from import duty for manufacturers exporting at least 95% of the total approved products 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.

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Under the National Insurance Act 1972 as amended, Bahamian employers, employees and the self-employed pay social security contributions. Although all employers and employees pay these contributions, whether or not they are resident, benefits can generally be claimed only be resident Bahamians.

Presently there is no direct taxation, ie on capital gains etc. though their now is a stamp tax of 7% on goods imported for business use. The absence of income, corporate, and inheritance taxes means that import duties are the main source of Bahamas government revenue. As a result, tariff rates are very high; the Bahamas raises some 65 percent of its revenues from import tariffs. The general rate of suty charges on imports is 32 percent, though there are numerous exemptions (for example the duty rate on computer equipment is 0%0. In 1998, the government eliminated duties on computer hardware. This duty can be considered a tax.