The Bahamas is one of the few sovereign jurisdictions in the world that has never levied a personal income tax — and a short flight from Miami it remains the closest true 0% domicile to North America. There is no tax on salary, dividends, capital gains, inheritance, gifts, or wealth, and the country’s Economic Permanent Residency program grants indefinite right of abode in exchange for a qualifying real estate purchase. As of January 2025 the headline minimum was raised to $1 million, repositioning the program firmly in the high-net-worth tier alongside the Cayman Islands and Monaco rather than competing with mid-market Caribbean alternatives.
Snapshot
| Metric | Value |
|---|---|
| Foreign-income tax | 0% (no personal income tax exists) |
| Capital gains tax | 0% |
| Corporate tax | 0% on most activities; new 15% domestic minimum top-up tax (DMTT) for in-scope multinationals from 2025 |
| Minimum investment | $1,000,000 in Bahamian real estate (raised Jan 2025 from $750,000) |
| Days/year required | 183+ days for tax residency certification; PR card itself has no minimum-stay rule |
| Processing time | 6–12 months for accelerated PR; standard PR can take 12–24 months |
| Path to citizenship | Yes — naturalisation possible after ~10 years of residency (discretionary) |
| Total cost ballpark | $1.05M–$1.5M+ all-in (property + government fees + legal + VAT on conveyance) |
Why the Bahamas for Tax Residency
- No personal income tax of any kind — the Bahamas has never enacted an income tax, so there is nothing to “exempt” or grandfather; the status is constitutional rather than a special regime that can be repealed
- Zero capital gains, inheritance, gift, and wealth taxes — particularly attractive for founders sitting on illiquid equity, crypto holders, and families planning generational transfers
- Geographic and time-zone proximity to the U.S. — Nassau is 50 minutes from Miami; Eastern Time alignment makes it the most practical 0% jurisdiction for North American business operators
- English common-law system — courts of last resort go to the Privy Council in London, giving sophisticated commercial dispute resolution and predictable property rights
- Established private banking and trust infrastructure — the Bahamas hosts more than 200 licensed banks and trust companies and has a mature financial services act framework
- Tax Residency Certificate — for individuals spending 90+ days in the Bahamas (and not more than 183 in any other single country), the Ministry of Finance issues a TRC accepted by most CRS-reporting jurisdictions
Tax Regime in Detail
Personal income tax
There is no personal income tax in the Bahamas — full stop. Salary, self-employment income, foreign pensions, dividends, interest, royalties, rental income, and capital gains are all received gross. Bahamian residents do not file an annual income tax return because none exists. National Insurance contributions apply to local employment income (combined ~9.8%, capped) and fund a modest social security system, but these are not income tax in any meaningful sense.
The absence of an income tax is structural rather than statutory: the Bahamas funds its government primarily through VAT (10%), customs duties on imports, real property tax, business licence fees, stamp duties, and tourism levies. This means that while income is untaxed, the cost of imported goods and real estate transactions is comparatively high, and budgets need to plan for that shift.
Capital gains tax
Zero. There is no capital gains tax on the disposal of shares, real estate, businesses, crypto-assets, or any other property. This applies to both Bahamian-source and foreign-source gains realised by Bahamian tax residents. For founders planning a liquidity event or holders of long-appreciated portfolios, the Bahamas is functionally identical to the UAE on capital gains treatment, with the added advantage of common-law jurisdiction.
Corporate tax
Historically 0% on offshore and most domestic activities, with revenue collected via flat business licence fees scaled to turnover. Important 2025 change: in line with the OECD’s Pillar Two framework, the Bahamas enacted a Domestic Minimum Top-up Tax (DMTT) of 15% applying to multinational enterprise groups with consolidated annual revenue of €750 million or more, effective for fiscal years beginning on or after 1 January 2025. For SMEs, family-owned businesses, holding companies, and operating businesses below the Pillar Two threshold, the corporate environment remains 0%.
Dividends, interest, rental income
Dividends paid by Bahamian companies and dividends received from foreign companies by Bahamian tax residents are not subject to income tax or withholding tax in the Bahamas. Interest income is similarly untaxed. Rental income from Bahamian real estate is gross-of-tax for the recipient, although the property itself is subject to annual real property tax (rates depend on classification — owner-occupied, foreign-owned, undeveloped — and are generally 0.625% to 1% above the threshold).
Inheritance, gift, wealth tax
None of these exist. The Bahamas has no estate or inheritance duty, no gift tax, and no annual wealth tax. Combined with a sophisticated trust act and well-established private trust company structures, this makes the jurisdiction a long-standing centre for multi-generational wealth planning. There is, however, stamp duty on the transfer of real estate (currently 2.5% to 10% sliding-scale, often split between buyer and seller).
VAT / consumption tax
VAT is 10% on most goods and services, including real estate transactions above $100,000. Cost of imported consumer goods can be 30%–50% higher than U.S. equivalents because of customs duties layered on top.
Residency Programs Available
Economic Permanent Residency (EPR) — accelerated
- Min investment: $1,000,000 in qualifying Bahamian real estate (raised from $750,000 effective 1 January 2025)
- Duration: Permanent — the PR is for life, subject to maintaining the qualifying property and good conduct
- Renewal: No periodic renewal of the PR status itself; certificate cards are reissued
- Best for: HNW founders, retirees with $1M+ liquidity, families wanting indefinite Caribbean residency with U.S. proximity
- Accelerated processing: Properties valued at $1.5M+ qualify for “accelerated” consideration (target 90 days, in practice 4–6 months)
Annual Homeowner’s Residence Card
- Min investment: Property of any value (no statutory minimum, but typically $250,000+ in practice)
- Duration: 1 year, renewable
- Renewal: Annually, fee-based
- Best for: Snowbirds and part-time residents who want documented status without committing to PR; does not automatically confer tax residency
Standard Permanent Residency (non-accelerated)
- Min investment: No fixed minimum — discretionary, based on contribution to the Bahamas
- Duration: Permanent
- Renewal: None
- Best for: Long-term residents who have lived in the Bahamas on annual permits; spouses of Bahamian citizens have a separate, faster track
Investor Visa / Self-Employed Resident Permit
- Min investment: Varies by sector; significant Bahamian Investment Authority (BIA) approval typically required
- Duration: 1 year initially, renewable
- Best for: Entrepreneurs setting up genuine operating businesses in the Bahamas (financial services, hospitality, tech)
Requirements & Costs
| Requirement | Details |
|---|---|
| Investment | $1,000,000+ in Bahamian real estate for accelerated EPR |
| Physical presence | 183+ days/year for Tax Residency Certificate; PR card itself has no minimum |
| Documents | Police certificates, medical, bank/financial references, source of funds, marriage/birth certificates (apostilled) |
| Government fees | EPR application: $10,000+ (varies); spouse and dependants additional |
| Stamp duty / VAT on conveyance | 2.5%–10% sliding scale on real estate, often split with seller; 10% VAT also applies above $100K |
| Legal/advisory fees | $15,000–$40,000 typical for property + EPR combined |
| Total upfront | ~$1.05M–$1.15M for property at the new minimum, plus another $40K–$80K in transactional and government costs |
| Annual costs | Real property tax (0.625%–1% above threshold); homeowner’s insurance (high in hurricane belt); HOA where applicable |
Application Process
- Initial assessment — Confirm that 0% Bahamas tax residency aligns with your home-country exit plan; the U.S. citizens in particular remain taxable on worldwide income and need additional planning, and many other countries apply CFC and exit-tax rules that the Bahamas alone cannot address. Read our guide on exiting a high-tax country.
- Property identification — Engage a Bahamian real estate agent to identify qualifying property at or above $1M. New Providence (Nassau, Lyford Cay, Old Fort Bay), Paradise Island, and Eleuthera are the most common locations for EPR applicants.
- Conveyancing and source-of-funds — Bahamian lawyers conduct title search, exchange contracts, and complete the purchase. Stamp duty and VAT are settled at completion. Funds must be remitted through a Bahamian bank account, supported by detailed source-of-funds documentation.
- EPR application filing — File with the Department of Immigration including police certificates from every country lived in for the past 10 years, medical certificate, financial references, and certified copies of all civil documents.
- Approval and PR card issuance — On approval, the applicant collects the PR certificate and biometric card; spouse and dependants are typically processed in parallel.
- Tax residency certification (optional but recommended) — To trigger CRS reporting in the Bahamas (rather than the previous home country), apply to the Ministry of Finance for a Tax Residency Certificate, which requires evidence of 90+ days physical presence and that no other single country has the applicant for 183+ days.
Pros & Cons
| ✅ Pros | ⚠️ Cons |
|---|---|
| 0% income, capital gains, inheritance, gift, and wealth taxes | $1M property minimum is steep relative to LatAm and even some Gulf options |
| Closest true 0% jurisdiction to the U.S. (50 min from Miami) | Cost of living is high — imported goods carry 30%–50% premiums |
| English common-law system; Privy Council appellate jurisdiction | Hurricane exposure (June–November); insurance costs reflect this |
| Mature private banking and trust ecosystem | Schooling, advanced healthcare often require travel to U.S. for serious cases |
| No personal tax filing burden of any kind | Property purchase + EPR is a 6–12 month process; not “weekend residency” |
| Path to citizenship after ~10 years of residency | OECD Pillar Two DMTT now applies to large MNEs from 2025 |
How the Bahamas Compares to Alternatives
For HNW founders weighing pure 0% jurisdictions, the most direct alternatives to the Bahamas are the Cayman Islands, the British Virgin Islands, the UAE, and Monaco. Cayman has a similar 0% architecture but no formal citizenship pathway and a slightly lower investment threshold ($250K–$500K depending on islands and program). The UAE is markedly cheaper to enter ($200K–$500K via Golden Visa), offers genuinely zero personal tax and a 9% corporate rate above AED 375K, and has time-zone advantages for Asia/Europe rather than the Americas. Monaco demands €1M+ in deposits with no real estate component but provides EU lifestyle access.
The Bahamas’ distinct selling point is U.S. proximity plus common law plus real-estate-backed PR — a combination Cayman matches on tax but not on citizenship optionality, the UAE matches on cost but not on common-law jurisdiction or geography, and Monaco matches on prestige but not on family scaling or 0% capital gains for non-residents of France. Compare side-by-side in our Bahamas vs Cayman breakdown and our broader pillar on 16 countries with zero income tax.
For applicants who cannot deploy $1M into a single property, Anguilla’s High Value Resident program (~$75K/year + property) and St. Kitts & Nevis citizenship-by-investment ($250K+) deliver similar 0% Caribbean tax outcomes at lower entry points, with the trade-off of less liquid real estate markets and smaller financial-services ecosystems.
Frequently Asked Questions
Does the Bahamas tax foreign income?
No. The Bahamas does not tax any income — foreign-source or local-source. There is no personal income tax statute in the country, so there is no concept of “foreign income exemption” because nothing is taxable to begin with. National Insurance applies to local employment but is a flat-capped contribution, not income tax.
How long does the $1M property requirement last? Can I sell after getting PR?
Permanent Residency is conditioned on continued ownership of the qualifying real estate. If the property is sold and not replaced with another qualifying asset, the Department of Immigration can review and potentially revoke PR status. Most applicants treat the property as a long-term hold or upgrade rather than divest.
Can I get a Tax Residency Certificate without permanent residency?
Yes. Tax Residency Certificates are issued by the Ministry of Finance based on physical presence (90+ days in the Bahamas, less than 183 days in any other single country, and demonstrable economic ties such as a residence and bank account). PR status helps but is not strictly required for the TRC — although in practice most TRC applicants either have PR or an Annual Homeowner’s Card.
Is the Bahamas on the EU tax blacklist?
The Bahamas was previously listed and has since been removed and re-listed at various points. As of 2026 it is not on the EU Annex I blacklist but appears periodically on Annex II (“grey list”) for specific commitments. CRS information exchange is fully implemented. Always check the most recent EU Council list before assuming current status.
Does U.S. citizenship still mean I pay U.S. tax in the Bahamas?
Yes. The U.S. taxes its citizens on worldwide income regardless of residence. Moving to the Bahamas eliminates state income tax (if any) and provides FEIE (~$130K in 2026) for active foreign-earned income, but federal tax on dividends, capital gains, and other passive income continues. To eliminate U.S. tax, U.S. citizens must formally expatriate, which may trigger the U.S. exit tax under IRC §877A.
What is the Domestic Minimum Top-up Tax (DMTT) and does it affect me?
The DMTT is a 15% top-up tax enacted in 2024 effective for fiscal years from 1 January 2025, applying only to multinational enterprise groups with consolidated annual revenue of €750 million+ (the OECD Pillar Two threshold). Individuals, HNW family offices below that threshold, and SME-scale operating businesses are unaffected. The Bahamas remains 0% corporate for everyone outside Pillar Two scope.
Can my family come with me on EPR?
Yes. Spouse and minor children are typically included in the principal applicant’s EPR; adult dependents under specific conditions can also be added. Each dependent generally requires separate documentation and a marginal additional fee. Children educated in Bahamian schools have the same access as residents.
How does the Bahamas compare to Cayman for crypto founders?
Both are 0% on personal income and capital gains. The Bahamas has more developed crypto-specific legislation (the DARE Act 2020/2024 update) and was historically home to FTX — a reputational scar that Cayman did not share but which has since been addressed by tighter VASP licensing. Cayman has a deeper hedge-fund ecosystem; the Bahamas has more accessible PR. See our crypto founder persona page for a structured comparison.
Ready to Make the Bahamas Your Tax Residency?
The Bahamas combines true 0% taxation with U.S. proximity, English common law, and a mature private banking ecosystem — a rare quartet. Whether the $1M property threshold is the right fit depends on liquidity, family structure, and how you weigh Caribbean lifestyle against alternatives like the UAE or Monaco. Our team coordinates the property identification, conveyancing, EPR filing, and Tax Residency Certificate process end-to-end.
Book a free consultation to see whether Bahamian Economic Permanent Residency fits your tax planning, and read our pillar on residency by investment for a broader comparison.
Last updated: 2026-04-26
Sources:
– Bahamas Department of Immigration — Permanent Residence: https://www.immigration.gov.bs/permanent-residence/
– Bahamas Ministry of Finance — Tax Residency Certificate: https://www.bahamas.gov.bs/
– PwC Worldwide Tax Summaries — Bahamas: https://taxsummaries.pwc.com/bahamas
– IMI Daily — Bahamas raises EPR property minimum to $1M (Jan 2025): https://www.imidaily.com/