BAHAMAS Trends and Developments Contributed by: Aliya Allen, Alistair Chisnall and Michaela Sumner-Budhi, Graham Thompson
Moving The Bahamas Forward The Bahamas has been a well-established des - tination from the 1950s and continues to enjoy a stable government and a parliamentary democ - racy based on the Westminster model. Investors rely on a seasoned and experienced legal infra - structure underpinned by a well-regarded court system with ultimate appeal to the Privy Council in the UK. World-class housing, internationally accredited education and medical facilities, and easy accessibility to the United States make it an attractive destination for ultra-high-net-worth homeowners and investors. Immigration and residency options include permanent residence and annual residence. For business owners, the Commercial Enterprises Act facilitates expe - dited approvals for a variety of entrepreneurial ventures that can be operated both within and outside of The Bahamas. On 28 May 2025, the Prime Minister of The Baha - mas, the Honourable Philip Davis KC, tabled “Budget 2025/2026: Expanding Opportunities Island by Island” in the House of Assembly. The government’s budget communication has made it clear that the government’s focus during this budget cycle is on security, opportunity, afford - ability and reform with the aim of allowing The Bahamas, its citizens and residents to exploit new opportunities and usher in a new era of pro - gress and renewal. Real Property Investments Property investment/development is a particu - larly robust pillar of foreign direct investment in The Bahamas. All non-Bahamians acquiring an interest (directly or indirectly) are required to be approved by the Investments Board or to register their purchase with that department pursuant to the International Persons Landholding Act. The government has taken some significant steps to improve the ease with which such applications
are made (now through online applications and fee payment processing) and to improve the effi - ciency of handling such matters – roughly halv - ing the previous timelines typically experienced. Similarly, all real property is (unless specially exempted) subject to annual real property tax and the government has carried out various ini - tiatives (primarily the adoption of electronic por - tals and payment methods) and improved the options and methods by which property own - ers may monitor their property’s annual tax and remit payment, with the former system of hard - copy mailing and “over-the-counter” payment largely falling away. Property transactions valued under BSD1 million are currently subject to the payment of VAT on an ascending scale up to 10% of the assessed value of the property. In an effort to shore up the country’s finances, all real property purchases by non-Bahamians are now charged VAT at 10% of the assessed value of the property. Whilst this rate change was expected to impact investors who traditionally sought to acquire properties worth less than BSD1 million, the market has not shown a significant decrease in activity or a slowdown attributable to the rate change. The government has announced it will be proposing additional measures to close loopholes to assist with fully capturing VAT on real estate. The government’s policy change with respect to the requirement to qualify for economic perma - nent residency status took effect on 1 January 2025. Real estate investments of a minimum of BSD1 million now qualify the investor for eco - nomic permanent residency status, rather than a minimum of BSD750,000. The route to obtain such status includes either an investment in real estate or the purchase of Zero Coupon Bonds from the Central Bank of The Bahamas. In both
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