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Bahamas Tax Guide
CaribbeanLast verified June 2026Exempt system
- Top income tax
- 0%
- Capital gains
- 0%
- Corporate
- 0%
- VAT / GST
- 12%
- Residency test
- 183 days
No personal income tax
In short
- The Bahamas offers zero income and capital gains tax, an English-speaking common-law system and a short hop to Florida.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: Crime in parts of Nassau prompts recurring foreign travel advisories, and everyday goods carry heavy import duties.
Verified June 2026 · 2 sources
Recent changes
- 2026-10-27 law changeAccelerated permanent residence by home purchase: threshold raised from US$750,000 to US$1,000,000 on 1 January 2025.
Best for
- Zero personal tax
0% on personal income — among the simplest tax outcomes globally.
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- Foreign income exempt
Exempt system — overseas income generally outside the local tax net.
- Corporate-friendly
0% corporate tax — competitive for founders and holding structures.
- No wealth tax
No annual tax on net worth or assets.
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
No capital gains tax
Wealth & Inheritance
Practical Notes
12% VAT on goods and services. Property taxes on luxury homes. Residency available through real estate investment.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Zero tax regime
- QDMTT for large MNEs
OECD Pillar Two (15% global minimum tax)
No Pillar Two legislation. Bahamas is exploring a domestic minimum top-up tax but nothing enacted as of mid-2026.
See full implementation trackerTax Treaty Network
No bilateral income-tax treaties (Bahamas has 0% domestic income tax). FATCA Model 1 IGA in force. TIEAs with most major economies.
See full treaty matrixBeyond tax
Living in Bahamas
The Bahamas offers zero income and capital gains tax, an English-speaking common-law system and a short hop to Florida.
- Expat hub
- Nassau
- Monthly budget
- ~$4,500
- Climate
- Tropical, 25°C
- Time zone
- UTC-5
- Tax100
- Cost of living$$$$
- Safety55
- Healthcare65
- English98
- Internet90 Mbps
- Warm climate100
- Residency access50
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- BEATS remote work permitRemote employment or self-employment outside the Bahamas, 1-year renewable stay
- Permanent residence (accelerated)Purchase of a home of at least US$1,000,000 (raised from US$750,000 on 1 January 2025)
Watch out: Crime in parts of Nassau prompts recurring foreign travel advisories, and everyday goods carry heavy import duties.
See how Bahamas ranks for remote workers, retirees and familiesData Sources
Last verified: June 2026. Always check official sources before making a decision.
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?
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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
US citizen moving to Bahamas? Read this first.
Bahamas has 0% personal income tax, so the US-citizen math is dominated by FEIE plus self-employment tax.
- •FEIE (Form 2555) shields ~$130k of earned income in 2026. Income above that has no Foreign Tax Credit to offset US tax (no foreign tax was paid), so it's taxed at regular US rates.
- •Self-employment tax (15.3%) is owed in full — Bahamas has no totalization agreement with the US, so there is no SE-tax exemption.
- •Investment income (dividends, capital gains, interest) is taxed at standard US rates. No FTC because no Bahamas tax was paid.
- •Bahamas residency requires 183 days. State residency severance from a sticky state (CA, NY, VA, NM, SC) before international move is the highest-stakes practical step.
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