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Bahamas Tax Guide

Caribbean
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
100/100
Extremely Tax Friendly
Business Tax Score
90/100
Extremely Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency; permanent residency available through investment

Income Tax Rates

Top Marginal Rate
0%
Structure
No personal income tax

Foreign Income Treatment

System
Exempt
Details
No tax on personal income of any kind

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Practical Notes

12% VAT on goods and services. Property taxes on luxury homes. Residency available through real estate investment.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
0%
Effective Rate Note
No corporate income tax; 15% QDMTT for large MNEs effective 2025
Free Zone / Incentives
No corporate tax regime applicable to all businesses

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
12%
Note
12% VAT on most goods and services

Compliance & Substance

Substance Requirements
Moderate - business license requirements
Compliance Friction
Low - tourism-focused economy

Notable Regimes

  • Zero tax regime
  • QDMTT for large MNEs

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Bahamas?

Bahamas has a top personal income tax rate of 0%. The tax structure is: No personal income tax. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Bahamas?

Bahamas uses a exempt system for foreign income. No tax on personal income of any kind

What are the residency requirements for Bahamas?

Tax residency in Bahamas generally requires 183 days of physical presence. 183 days required for tax residency; permanent residency available through investment. Always verify current rules with official sources.

Is there a wealth tax in Bahamas?

No, Bahamas does not have a wealth tax. No wealth tax

What is the corporate tax rate in Bahamas?

The corporate tax rate in Bahamas is 0%. No corporate income tax; 15% QDMTT for large MNEs effective 2025