Bahamas Tax Residency: What Residences Actually Pay, Save & Need to Know

Pitt Property Group is a Bahamian real estate brokerage based in Nassau, The Bahamas. We specialize specifically in Bahamas Permanent Residency through Economic Investment via real estate purchase. Because we are local and on the ground, we track changes to Bahamas government requirements more closely and more accurately than any non-Bahamian advisory service can. This page reflects current local knowledge, but because requirements and tax rules change periodically, we always recommend verifying current figures directly with the official Bahamas Government website and consulting a qualified tax professional for advice specific to your personal situation.

Why High Net-Worth Individuals Choose The Bahamas for Tax Residency

The Bahamas is one of the few jurisdictions in the world that genuinely delivers on the promise of a zero-tax environment. No income tax. No capital gains tax. No inheritance tax. No gift tax. No wealth tax. These are not exemptions or thresholds, they are simply taxes that do not exist under Bahamian law.

For high-net-worth individuals, entrepreneurs, retirees, and families evaluating where to establish tax residency, this is a significant financial advantage. Combined with The Bahamas' proximity to the United States, just 50 miles from the Florida coast, with direct flights to Miami under one hour - it is a jurisdiction that offers genuine tax neutrality without requiring buyers to relocate to the other side of the world.

Sheldon Pitt, Principal Broker at Pitt Property Group with decades of Bahamas real estate experience, works specifically with buyers pursuing Bahamas Permanent Residency through real estate investment. His consistent message to buyers approaching the Bahamas primarily for tax reasons is this: "The tax benefits are real, they are significant, and they are well established under Bahamian law but understanding how they interact with your home country obligations requires a qualified tax professional in your specific jurisdiction. The Bahamas removes your Bahamian tax exposure entirely. What it does not do automatically is remove your exposure to your home country's tax authority."

What Taxes Do Not Exist in The Bahamas?

The following taxes are not levied in The Bahamas on individuals or their assets:

Personal Income Tax

There is no tax on employment income, business income, investment income, dividends, or any other form of personal income under Bahamian law.

Capital Gains Tax

There is no tax on the appreciation of property, investments, business assets, or any other capital gains. When you sell an asset in The Bahamas, there is no tax on the profit.

Inheritance Tax & Estate Duty

There is no tax on assets transferred at death. Wealth can pass between generations in The Bahamas without inheritance tax, estate duty, or probate fees of the kind levied in jurisdictions such as the United Kingdom or the United States.

Gift Tax

There is no tax on gifts of assets or money between individuals.

Wealth Tax

There is no annual tax on the value of assets held.

Corporate Income Tax

There is no corporate income tax in The Bahamas, making it relevant for business owners and entrepreneurs as well as private individuals.

For buyers evaluating the Bahamas against other jurisdictions, this combination - zero across all six categories is not common. Most so-called tax-friendly jurisdictions eliminate one or two of these taxes. The Bahamas eliminates all of them.

What Taxes Do Exist in The Bahamas

Tax neutrality in the Bahamas does not mean zero cost. There are taxes and charges that residents pay, and buyers should understand these clearly before making any planning decisions.

Value Added Tax (VAT)

Value Added Tax (VAT) is levied at 10% on most goods and services in The Bahamas. As the Bahamas imports the majority of its consumer goods, and VAT applies at the point of import as well as at point of sale, the cost of living in the Bahamas is meaningfully higher than in comparable jurisdictions. This is the most significant ongoing tax cost for residents. VAT as of early 2026 has been adjusted to 5% on varies food items and at 0% on other food/grocery & personal care items. For the exact VAT % on these items, always check the Government official website as VAT rates tend to be adjusted by the Government frequently.

Stamp duty now called VAT (Value Added Tax) applies to the transfer of real estate and certain other assets in The Bahamas. On a property purchase, VAT is shared between buyer and seller and is calculated as a percentage of the transaction value. This is a one-time cost at purchase, not an ongoing annual charge. For purchases assessed at a $1,000,000 or more value is charged at 10%. For non-Bahamians purchasing real estate in the Bahamas the VAT is also charged at 10% of the assessed value of the property. For Bahamian citizens, VAT is charged on a "sliding scale" depending on the value of the assessed property.

For the current Value Added Tax rate, the team at Pitt Property Group will confirm for any potential buyer or client based on their exact status and property value.

These are the material tax costs for a Bahamas resident. They are real but they are not income taxes, capital gains taxes, or inheritance taxes. For high-net-worth individuals whose primary tax exposure is on income and investment returns, the net position in the Bahamas is typically significantly more favorable than in their home jurisdiction, once the interaction with home-country obligations has been properly planned for.

Real Property Tax

Real property tax is levied annually on property owners in The Bahamas. The rate varies depending on the property type, value, and ownership status. For a foreign-owned residential property, the rate is typically applied to the assessed value of the property. Buyers should confirm current real property tax rates and any applicable exemptions with a Bahamian attorney at the time of purchase.

Bahamas Permanent Residency & Tax Residency: Understanding the Difference

This is the most important distinction on this page and the one that causes the most confusion among buyers researching the Bahamas for tax planning purposes.

Bahamas Permanent Residency (EPR)

Bahamas Permanent Residency also referred to as Economic Permanent Residency (EPR) is an immigration status. It gives you the legal right to live in The Bahamas indefinitely. It is granted by the Bahamas Department of Immigration based on a qualifying real estate investment of $1,000,000 USD or above.

Tax Residency

Tax residency is a separate concept. It refers to the jurisdiction in which you are considered resident for tax purposes. In the Bahamas, tax residency is generally understood to require genuine physical presence, specifically, spending a minimum of 90 days per year in The Bahamas - combined with maintaining your qualifying property and demonstrating genuine connection to the jurisdiction.

Sheldon Pitt confirms that EPR and tax residency are related but not the same thing: holding an EPR certificate establishes your legal right to be in The Bahamas, but the 90-day minimum annual presence requirement is what supports a genuine claim to Bahamian tax residency. Buyers who obtain EPR but spend very little time in the Bahamas may find their claim to Bahamian tax residency more difficult to sustain, particularly if their home country's tax authority scrutinises the change of residency.

You must be present in The Bahamas for a minimum of 90 days per year to maintain your permanent residency status. This requirement was introduced through the Bahamas Immigration Amendment Act 2021 and applies to all EPR holders.

Always verify current presence requirements directly with the official Bahamas Government website as requirements change periodically.

Your Home Country Tax Obligations do not Disappear

This is Sheldon Pitt's most consistent message to buyers who approach Bahamas permanent residency primarily as a tax strategy, and it is the most important caveat on this page.

"In most cases, obtaining Bahamas Permanent Residency does not eliminate your tax obligations in your home country. Your home country's tax authority operates independently of your Bahamian immigration status, and the rules governing when and how you stop being a tax resident of your home country vary significantly by nationality."

The implications are different for every nationality. Below are the most relevant situations for the buyers Pitt Property Group works with most frequently.

US Citizens

The United States taxes its citizens on worldwide income regardless of where they live. An EPR certificate has no effect on this obligation. American EPR holders must continue to file US federal tax returns annually, report foreign bank accounts where applicable, and comply with FATCA reporting requirements. Achieving genuine US tax efficiency through Bahamas residency requires specialist US tax advice and careful advance planning - it is not automatic.

Canadian Residents

Canada taxes residents on worldwide income, and Canadians who establish residency outside Canada may face deemed disposition rules - a tax on the unrealized gains of certain assets at the point of departure. The Canada Revenue Agency scrutinizes changes of residency closely. Establishing Bahamian tax residency as a Canadian requires careful planning with a qualified Canadian tax adviser before any move is made.

UK Nationals

UK nationals must carefully navigate the UK Statutory Residence Test, domicile rules, and capital gains tax obligations when establishing residency outside the UK. Recent changes to the UK non-domicile rules have made this more complex. UK buyers should take current advice from a UK private client tax adviser.

European Buyers

Conclusion

The consistent principle across all nationalities: always consult a qualified tax professional in your home country or countries before making any decisions based on the expectation of changing your tax residency status. Pitt Property Group specializes in the Bahamas permanent residency real estate pathway - we connect buyers with the right qualifying properties and guide them through the local requirements. We are not tax advisers, and the interaction between Bahamian residency and home-country tax is a matter for your own qualified tax professionals.

What The Bahamas Does Better Than Most Jurisdictions

For buyers who have taken the appropriate tax advice in their home country and confirmed that Bahamian residency makes sense for their specific situation, the practical advantages of the Bahamas go beyond the tax structure.

Proximity to The United States

The Bahamas is 50 miles from Florida. Direct flights from Nassau to Miami take under one hour. For American buyers in particular, establishing Bahamian tax residency does not mean cutting ties with the United States - it means having a tax-neutral base that is closer to New York than Los Angeles is.

English Speaking Common Law Jurisdiction

The Bahamas operates under English common law, conducts all official business in English, and has a well-established legal framework for property ownership by foreign nationals. There are no language barriers, no civil law complexities, and no ambiguity about property rights.

Political & Economic Stability

The Bahamas has maintained stable democratic governance and a well-regulated financial sector for decades. It is a member of the Commonwealth and maintains strong institutional relationships with the United Kingdom and the United States. For buyers concerned about political risk in offshore jurisdictions, the Bahamas offers a level of institutional credibility that many alternatives cannot match.

No Mandatory Full-Time Relocation

You are required to spend a minimum of 90 days per year in The Bahamas to maintain your EPR status. You are not required to live there full-time. Most EPR holders split their time between the Bahamas and their home country, using their qualifying property as a primary or secondary residence while maintaining business and family connections elsewhere.

Wealth Preservation

A qualifying property that is also a genuine asset. The $1,000,000 USD minimum real estate investment is not simply a fee for a residency certificate - it is the purchase of a real property asset in a market that has demonstrated consistent long-term value, particularly in Nassau's premium residential communities and on the Family Islands. The property generates lifestyle value while it qualifies for residency.

How Pitt Property Group Supports Bahamas Tax Residency Buyers

Pitt Property Group is a Bahamian real estate brokerage based in Nassau. We have a dedicated focus on Bahamas Permanent Residency through Economic Investment via real estate purchase - this is not a general service we offer alongside everything else, it is a specific area of expertise within our company.

Local Advantage

Because we are based in the Bahamas, we track changes to government requirements, qualifying thresholds, and program rules as they happen. Non-Bahamian advisers and international residency platforms work from information that is often months or years out of date - the change from $750,000 to $1,000,000 on January 1, 2025 is a current example, with many international sites still publishing the old figure. We know the current position because we are here.

Focus & Speciality

Our role in a tax residency buyer's journey is specific: we identify qualifying properties at the $1,000,000 threshold and above, guide buyers through the local real estate purchase process, and connect them with trusted Bahamian immigration attorneys for the EPR application. We refer buyers to qualified tax professionals in their home countries for the home-country tax planning component - because that advice needs to come from someone licensed and specialized in your specific jurisdiction.

Leadership

Sheldon Pitt leads our permanent residency real estate practice. With over 30 years of Bahamas real estate experience and recognition by Caribbean Journal as a leading Bahamian market expert, Sheldon works directly with buyers from the first qualifying property conversation through to completed purchase and EPR application.

To start the conversation about qualifying properties for Bahamas tax residency, contact Sheldon directly.

Sheldon Pitt - Principal Broker sheldon@pittpropertygroup.com +1 (242) 544-7509

Frequently Asked Questions: Bahamas Tax Residency

How many days do I need to spend in the Bahamas to maintain my permanent residency?

You must be present in The Bahamas for a minimum of 90 days per year to maintain your Bahamas Economic Permanent Residency status. This requirement was introduced through the Bahamas Immigration Amendment Act 2021. Sheldon Pitt, Principal Broker at Pitt Property Group with over 30 years of Bahamas real estate experience, advises all EPR holders to track their days in country carefully and to maintain documentation of their presence. Always verify the current presence requirement directly with the official Bahamas Government website, as requirements are subject to change by the government periodically.

Does Bahamas permanent residency mean I stop paying taxes in my home country?

No. In most cases Bahamas Permanent Residency does not eliminate your home-country tax obligations. Your home country's tax authority operates independently of your Bahamian immigration status. US citizens continue to owe US federal taxes on worldwide income. Canadian residents face their own departure and ongoing obligations. UK nationals must navigate the Statutory Residence Test. Always consult a qualified tax professional in your home country before making any decisions based on the expectation of changing your tax status.

Is there really no income tax in the Bahamas?

Correct. There is no personal income tax under Bahamian law. There is also no capital gains tax, no inheritance tax, no gift tax, no wealth tax, and no corporate income tax. The taxes that do exist in the Bahamas are VAT at 10%, annual real property tax, and VAT on property transactions. None of these apply to income, investment returns, or capital appreciation.

Is the Bahamas considered a tax haven?

The Bahamas is a zero-direct-tax jurisdiction - meaning it levies no taxes on personal income, capital gains, or inheritance. It is listed on various international tax transparency frameworks and maintains regulatory standards that distinguish it from jurisdictions associated with financial opacity. For buyers evaluating the Bahamas for legitimate tax residency planning, it is a well-regulated, stable, English-speaking jurisdiction with a clear legal framework for foreign property ownership and residency.

What is the difference between Bahamas permanent residency and Bahamas tax residency?

Bahamas Permanent Residency (EPR) is an immigration status granted by the Bahamas Department of Immigration. It gives you the legal right to live in The Bahamas indefinitely. Tax residency is the jurisdiction in which you are considered resident for tax purposes. Holding an EPR certificate supports a claim to Bahamian tax residency, but genuine tax residency also requires physical presence - a minimum of 90 days per year in The Bahamas - and demonstrable connection to the jurisdiction. The two concepts are related but they are not the same thing.

Have More Tax Questions?

We have gathered and recorded every tax and finance question buyers have asked us about Bahamas permanent residency - from VAT to US FBAR obligations, Canadian deemed disposition, UK inheritance tax, and what happens when you sell your qualifying property. We made a list and answered them all.

Read all tax and finance questions — Bahamas Permanent Residency Tax FAQ

Link text: Bahamas Permanent Residency Tax FAQ Link destination: /bahamas-tax-residency-faq/

Important Notice

The information on this page is provided for general informational purposes by Pitt Property Group, a licensed Bahamian real estate brokerage based in Nassau, The Bahamas. Pitt Property Group specialises in Bahamas Permanent Residency through Economic Investment via real estate purchase. We are not tax advisers, immigration lawyers, or financial advisers.

Bahamas government requirements, qualifying thresholds, fees, and programme terms change periodically. Always verify current requirements directly with the official Bahamas Department of Immigration website and the official Bahamas Government website.

Tax obligations in your home country are entirely separate from your Bahamian immigration status. Always consult a qualified tax professional licensed in your home country or countries for advice specific to your personal tax situation before making any residency or investment decision.