BAHAMAS Trends and Developments Contributed by: Richard Horton and Emma Van Wynen, Alexiou, Knowles & Co.
account pending the determination of the govern - ment’s tax appeal. In doing so, the Court cited the prolonged delays in the advancement of the VAT claim and held that it would not be in the interests of justice to continue withholding the funds from the judgment creditor bank, particularly considering the overwhelm - ing authorities confirming that VAT was not chargeable on judicial sales. This landmark decision provided reassurance that Bahamian courts will seek to uphold established admiralty standards and maintain a stable legal foun - dation that offers certainty with respect to future prac - tice and general maritime litigation, particularly in ship financing and enforcement contexts. Yachting Charter yacht registration represents an area of growth within The Bahamas’ maritime sector. In 2025, the BMA introduced targeted reforms to its yacht regis - tration policies that affected both small charter yachts (SCYs, between 12 and 24 metres) and large charter yachts (LCYs, 24 metres and above), with particular focus on eligibility criteria and operational thresh - olds. With effect from 1 July 2025, the BMA no longer accepts new registrations of charter yachts below 20 metres. Vessels between 20 and 24 metres are subject to discretionary approval, while yachts of 24 metres and above continue to be eligible as of right. Existing yachts registered prior to 1 July 2025 are expressly grandfathered, provided they remain compliant with statutory and survey requirements. These changes reflect a deliberate policy shift in the Bahamian yachting industry towards larger, ocean- capable vessels designed for extended operations and international charter service. Registration is no longer treated as a purely administrative exercise, but rather is now explicitly linked to compliance with the relevant yacht code and technical survey standards. Alongside regulatory adjustments, the use of sophis - ticated ownership and registration structures has continued to grow in The Bahamas. Special purpose vehicles remain a common feature of yacht owner - ship, providing flexibility for asset protection and financing arrangements. The Bahamas’ common law framework, with the final court of appeal being the
Judicial Committee of the Privy Council sitting in Lon - don, England (House of Lords), coupled with its estab - lished ship mortgage regime, provides clarity of title and creditor protection, which is especially important for high-value charter yachts. Separately, with effect from 1 July 2025, The Bahamas implemented a revised cruising permit and fee struc - ture under the Customs Management (Amendment) Regulations, 2025. Under the new rules, vessels of 34 feet and under are subject to a USD500 cruising per - mit fee; vessels exceeding 34 feet but not exceeding 100 feet are charged USD1,000, and vessels in excess of 100 feet are charged USD3,000. This represents a notable increase from the previous fee structure and has attracted significant industry attention. While certain destinations – including Exuma and established superyacht hubs such as Staniel Cay – have reported little to no impact on vessel traffic, other regions (particularly Abaco) have expressed concern. Marina operators in those areas have reported reduced vessel numbers in the past few months, during what would traditionally be peak season, attributing this in part to the revised fee regime. The Bahamian government has indicated that the increased fees were introduced with the aim of pro - tecting national revenue and supporting environmental initiatives. However, feedback from marina operators, service providers and visiting yacht owners suggests that the changes may have had unintended commer - cial consequences, including deterring smaller ves - sels and short-stay visitors. Recognising these concerns, the Ministry of Tourism acknowledged the need to strike a more effective balance, one that reflects national values, safeguards local interests, and reinforces The Bahamas’ position as an open and welcoming jurisdiction for responsible yachting activity. The government has stated that a review of the current framework and its implemen - tation is ongoing, with efforts under way to engage in constructive dialogue with marina operators, tour guides, service providers and small business owners. These yachting developments underscore a broader policy emphasis on quality over quantity, and reinforce
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