TAX BENEFITS Under the Hawksbill Creek Agreement, businesses in the free trade zone pay no taxes on profits, capital gains, inheritance, income, earnings, distributions, gifts, or on imported and exported goods. In addition, import duties and taxes on real estate have been waived through August 3, 2015.
STAMP TAX All real estate transactions in the Bahamas are subject to a Government Stamp Tax. This is essentially a transfer tax levied on all property sales. The buyer is responsible for paying one half of this Tax and the seller is responsible for paying the other half. Stamp Tax on transactions valued at under $100,000 is 2.5% of the appraised value. Transactions at $100,000 or more carry a stamp tax charge of 10% at the appraised value.
BAHAMAS GOVERNMENT VALUE ADDED TAX (VAT) As of January 1, 2015, the Bahamas Government has imposed a 12% Value Added Tax (VAT) on Real Estate Commissions and Legal Fees.
LEGAL REPRESENTATION Both buyer and seller need legal representation by a Bahamian attorney.
REAL ESTATE COMMISSIONS Developed property: 6% Undeveloped property (vacant land): 10%
PERMANENT RESIDENCE STATUS Overseas persons investing in a residence valued at $500,000 and over, may apply to the Department of Immigration for Permanent Residency status. Holding a Permanent Residence certificate can lead to significant tax advantages in your home country. Accelerated Consideration for a Permanent Residence certificate is offered to purchasers of residences (homes or condos) of $1,500,000 or more.
INVESTOR ADVISORY Keys Bahamas offers a wide range of income producing investments across a multitude of properties. From high-end condos to long term renovation projects, we guide clients to properties that generate high yields for the investor and our investment properties are located in prime locations throughout The Bahamas. All of our investments are geared toward the attainment of a steady income stream, and strong capital appreciation potential. Investment Incentives Investment incentives under the following Acts include exemption from the payment of customs duties on building materials, equipment and approved raw materials, business licensing fees and real property taxes for periods up to twenty years:
The Export Manufacturing Industries Encouragement Act
The Industries Encouragement Act
The Agricultural Manufacturers Act
The Tariff Act
The Free Trade Zone act
The Hotels Encouragement Act
The Spirits and Beer Manufacturers Act
NOTE: Custom duty exemptions do not apply to personal consumables.
Investors may acquire publicly owned lands for approved developments on concessionary terms; and
Acquire low cost space for lease for industrial enterprises.
Government will provide special training and retraining for Bahamian workers to ensure the continuing availability of a highly skilled labor force.
Business located in The Bahamas may benefit from the following preferential trade arrangements:
The Lome Convention
General System of Preference (GSP)
Caribbean Basin Initiative
Tax Information Exchange Agreements TIEA's signed with 23 countries to establish double taxation treaties. The most recent ones signed have been signed with Canada and Japan.