Even in a tropical paradise it sometimes has to rain. Similarly, even in tax havens like the Bahamas, there has to be some tax system to fund government spending.
The Bahamas tax system is world famous for not taxing income (personal or corporate), capital gains, wealth or inheritance. With some strategic planning, it is one of the least onerous systems to live under.
Mainly, the Bahamian government fills its coffers by their import duties, value-added tax and stamp duty on various documents needed for certain transactions.
Follow this guide to navigating the tax system here in the Bahamas and you’ll be able to structure your income, portfolio and other activities to minimize your tax bill.Continue reading “The Bahamas’ Tax System Explained”
The Bahamas is generally seen as one of the most pleasant options for where to live in the world. A tropical climate and easy-going way of life put the Caribbean nation on the top of most lists for those looking to relocate.
And tax rates run a close second to climate when it comes to naming what makes the Bahamas a favorite for the very wealthy and location-independent digital nomads.
Some countries that compete for this attention have relatively high nominal taxes but then create a system of complicated exemptions, credits and rebates to significantly reduce the effective tax rate.
The Bahamas approach to tax rates differs a bit. The headline numbers look very attractive: there is no personal income tax, capital gains tax, inheritance tax and a very low VAT rate. But there are relatively high rates of duty on imported goods and national insurance contributions on payroll.
This article will guide you through the taxes on everything from property to corporate income and will help inform an important part of your decision to relocate to the Bahamas.Continue reading “The Bahamas Tax Rates”