v256.0 · tax residency · BS · verified 2026-04
Bahamas tax residency
Rules that determine when you become tax-resident in Bahamas, the headline rates, and any HNW or expat special regime that softens the standard system.
Threshold
183 days/year
Taxation basis
territorial — zero direct taxes
Top marginal rate
0% income / 0% CGT / 0% inheritance — all direct taxes zero
Capital gains
0%
Special regime: No special regime needed — entire system is zero direct tax
No income tax, no CGT, no dividends tax, no inheritance tax, no estate tax, no wealth tax. Revenue raised via 10% VAT, property tax (real estate), customs duties. Residence pathways: Permanent Residence via $750K+ property investment (accelerated for $1.5M+); annual permits via $1K-25K depending on category; Economic Permanent Residence Programme requires demonstration of self-sufficiency.
Rate landscape
| Dividends tax | 0% |
| Exit tax | No exit tax |
| Tax treaty network | 6 (mostly TIEAs, not full DTAAs) jurisdictions |
| CRS (automatic info exchange) | Active since 2017 |
Recent regime changes (2023-2026)
Domestic Minimum Top-up Tax (DMTT) under OECD Pillar Two introduced 2024 — 15% minimum for multinationals >€750M turnover (does not affect individuals/small business). VAT remained at 10% through 2024-25. Property tax remains low for foreign owners.
Strengths
- Zero direct taxes — purest among Caribbean tax havens
- BSD pegged 1:1 to USD — no currency volatility
- Permanent Residence via $750K property is accessible HNW pathway
- Active CRS participation since 2017 removes opacity stigma
Drawbacks
- Very small treaty network (mostly TIEAs not DTAAs)
- No treaty shopping options — withholding rates on outbound dividends from source countries may be high
- Hurricane risk + insurance costs
- Limited large-economy financial market access
Top cities for tax-residency seekers
Nassau Freeport Paradise Island
Source: official Bahamas tax authority page · Last verified 2026-04
See also: full Bahamas country profile · full tax-residency atlas