Bahamas Standard Zero Tax Regime

The Bahamas operates a zero direct tax system for individuals. There is no personal income tax, capital gains tax, dividend tax, wealth tax, or inheritance tax. This tax-neutral framework has been a cornerstone of the country's appeal to high-net-worth individuals and international businesses for decades.

Government revenue is derived primarily from consumption taxes (10% VAT), import duties, property taxes, stamp duties, and business license fees rather than income-based taxation. Property taxes apply to real estate holdings based on assessed value, with rates varying for owner-occupied versus investment properties.

For large multinational enterprises with global revenues exceeding EUR 750 million, a 15% Domestic Minimum Top-up Tax (DMTT) came into effect in January 2025 under OECD Pillar Two rules. This does not affect individual residents or smaller businesses.

To establish tax residency, most high-net-worth individuals pursue Economic Permanent Residency (EPR) through real estate investment. The minimum threshold is USD 1 million, with applications for properties valued at USD 1.5 million or more receiving expedited 21-day processing. Investments must be maintained for 10 years, and residents must spend at least 90 days per year in the Bahamas.