BAHAMAS Law and Practice Contributed by: Judith Whitehead KC, Michaela Sumner-Budhi, Sean McWeeney Jr., Charisma Romer-Cartwright and Hubert Edwards, GrahamThompson
2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments The prior approval of the government of The Baha - mas is required before a foreign investor invests in The Bahamas. All non-Bahamians are required to submit a formal investment proposal to the Bahamas Invest - ment Authority (BIA), which serves as the secretariat of the National Economic Council and The Bahamas Investments Board. Investment in Bahamian Business The current investment policy reserves certain sectors of the Bahamian economy for investment by Bahami - ans, as follows: • wholesale and retail operations; • commission agencies engaged in the import/export trade; • real estate and domestic property management agencies; • domestic newspapers and magazine publications; • domestic advertising and public relations firms; • security services; • domestic distribution of building supplies; • construction companies, except for special struc - tures for which international expertise is required; • personal cosmetic/beauty establishments; • commercial fishing within the exclusive economic zone of The Bahamas; • auto and appliance service operations; • public transportation inclusive of locally solicited charter boat tours; • landscaping; and • commercial motorised watercraft/commercial lei - sure boating activity. (International investors may engage in the wholesale distribution of any product the investor produces locally.) The following sectors are open to foreign investment; the list is non-exhaustive, and investors are encour - aged to communicate their intended investment activ - ity to the BIA: • touristic resorts;
• upscale condominium, timeshare, and second- home development; • information and data processing services; • assembly industries; • hi-tech services;
• ship repair and other services; • light manufacturing for export;
• agro-industries; • food processing;
• mariculture (the salt-water farming of fish, other animals, and plants, with the purpose of human consumption); • banking and other financial services; • captive insurance; • aircraft services; • pharmaceutical manufacture; and • offshore medical centres. In addition to BIA approval, Exchange Control Regula - tions and policies may bear upon a particular transac - tion and in certain instances may require that foreign investment inflows are granted approval, that enti - ties wholly or partially owned by foreign investors are appropriately designated, and that “Approved Invest - ment Status” is granted to foreign investors or lenders with respect to their investment or loans. Over recent years (including in early 2024), the Central Bank of The Bahamas has taken various steps to simplify or “relax” the Exchange Control regime and administra - tive arrangements, or to delegate authority for cer - tain matters to local financial institutions, and a pru - dent investor or lender would want to obtain advice regarding what approvals may be required (or now dispensed with or delegated to local banks) in respect of their transaction. Investments in Property Subject to any exceptions in the International Person’s Landholding Act, non-Bahamians acquiring real prop - erty or having an interest in real property must first apply for a permit from the Investment Board. Eligibil - ity for a permit includes a due diligence review of the intended purchaser.
77 CHAMBERS.COM
Powered by FlippingBook