BAHAMAS Law and Practice Contributed by: Sean Moree KC, Vanessa Smith and Erin Hill, McKinney, Bancroft & Hughes
10. Charitable Planning 10.1 Charitable Giving
use the many estate planning structures available in The Bahamas to protect themselves and their wealth, such as trusts, foundations or a will. 9.3 Cohabitation and Unmarried Couples The Bahamas’ treatment of unmarried couples is, in broad terms, less protective than its treatment of legally married couples, particularly on death and intestacy. The Bahamas does not have a statutory “common-law spouse” or cohabitant status that auto - matically gives an unmarried partner the same rights as a husband or wife merely because the couple has lived together for a certain period. That distinction is particularly important in estate and succession planning. The absence of personal income tax, capital gains tax, inheritance tax and gift tax in The Bahamas means that the tax differences between married and unmarried couples are relatively limited domestically if individuals undergo adequate estate planning.
There is no income tax in The Bahamas. However, in certain circumstances, the transfer of real property to a foundation or charity will not attract VAT. 10.2 Common Charitable Structures The most commonly used structure for charitable planning is a non-profit organisation (NPO). NPOs have the benefit of certain deductions on excise tax for items imported into The Bahamas, and may be entitled to claim input tax deductions in connection with VAT paid on utility and maintenance payments.
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