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  • Writer's pictureCreimerman Product Team

Navigating economic residency paradises in the Bahamas: Is it a good option?


The Commonwealth of The Bahamas, an enchanting archipelago located in the Lucayan Archipelago of the West Indies, appeals to investors with an interesting proposition - economic permanent residency.


With over 3,000 islands, cays, and islets, The Bahamas not only showcases unparalleled natural beauty but also serves as a lucrative hub for financial opportunities.


A Glimpse into The Bahamas

Situated in the North Atlantic, The Bahamas features a parliamentary constitutional monarchy with Nassau as its capital, residing on the island of New Providence. Recognized as one of the wealthiest countries in the Americas, its robust economy pivots on tourism and offshore finance.


Following the United States and Canada in per capita gross domestic product, The Bahamas presents itself as a tax haven with a competitive tax regime.


The Bahamas economic permanent residency


The Bahamas offer immediate permanent residency status to investors who either buy a home for at least $750,000 or invest an amount of similar or greater magnitude in a local business that employs Bahamians. To maintain the permanent status, investors must spend at least 90 days each year in the Bahamas. Following 10 years of de facto residency, investors are eligible to apply for naturalization in the Bahamas.


To qualify for permanent residency in the Bahamas as an investor or financially independent individual, the applicant must either own a residence in the Bahamas purchased for a minimum of $750,000 or own or hold a beneficial interest in a “growth category” business in the Bahamas that supports the employment of Bahamians.


The applicant, moreover, must demonstrate sufficient independent financial means to be self-sustaining without the need to take up employment in The Bahamas. Applicants must maintain their property or qualified investments for ten years and file a declaration every decade confirming that the information contained in the application they relied upon to obtain EPR remains unchanged.


Path to citizenship

The pathway to citizenship is established through the Economic Permanent Residency program, allowing applicants to become Bahamian citizens after ten years, with six years spent as de facto residents. However, the decision to grant citizenship is discretionary.


Program benefits


  • Immediately upon approval is the time to permanent residency.

  • Path to citizenship.

  • Lower taxes.

  • Safety and security.

  • 3-4 months of processing time.

  • English as an official language.

  • Citizenship grants visa-free travel to 155 destinations, including Schengen countries.


Living in The Bahamas:

Pros:

  • Low taxes, as The Bahamas is a tax haven.

  • No personal income tax, capital gains tax, corporate tax, or inheritance tax.

  • Relatively low value-added tax on goods and services.

  • English as the official language simplifies life for expats.


Cons:

  • High cost of living, exceeding that of Canada or the US.

  • Strict citizenship requirements, making it easier to obtain residency than citizenship.

  • Authorities do not recognize dual citizenship, requiring the renunciation of original citizenship.

  • Economy heavily relies on tourism with minimal industry.


Other Options

Belize:

Looking for alternatives? Belize, a captivating country in Central America, is gaining popularity among foreigners, retirees, and digital nomads. Belize residency offers flexibility, family-friendly options, and relatively affordable fees. Tax breaks in Belize allow for importing personal belongings without being subject to taxes or import duties during the first year of residency.


In conclusion, while The Bahamas offers an appealing and relatively straightforward path to acquiring a second residency, it's essential to consider alternative options that may come with additional benefits.



If you want more information about Investment Abroad and its opportunities to develop business, contact us today! Below this article, you will find a link to set up a free ten-minute consultation with us to discuss your options further.


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