Investment Benefits

The Bahamas has been a peaceful and stable democracy for almost 300 years and is situated only 50 miles from the world's largest economy.  In addition to our prime location and great financial track record, there are  No personal of corporate income taxes and no taxes on capital gains, no inheritance tax, dividends or interest.

In 1994, the government introduced a National Investment Policy to support an investment-friendly climate and foster the economic growth and development of The Bahamas. An edited version of the policy follows:

Investment environment (courtesy of Bahamas Handbook)

To support the National Investment Policy the government will provide:

1. A politically and economically stable environment conducive to private investment.

2. An atmosphere where investments are safe and the expropriation of investment capital is not considered.

3. A legal environment based on a long tradition of parliamentary democracy, the rule of constitutional and statute laws, and where security of life and personal property are guaranteed.

4. Clear and transparent investment incentive legislation.

5. An environment in which freedom from capital gains, inheritance, withholding, profit remittance, corporate, royalty, sales, personal income, dividends, payroll and interest taxes is ensured.

6. Timely amendment and/or enactment of new legislation as required.

7. Essential and reliable public services, including modern utilities infrastructure: water, electricity and communications.

8. An educational system designed to meet the needs of foreign and domestic investments.


Investment incentives


Investment incentives under the following Acts include, among other incentives, exemption from the payment of customs duties on certain construction materials, equipment and approved raw materials. Additionally, waiver of real property taxes is available for certain investments for periods of up to 20 years.

- Export Manufacturing Industries Encouragement Act

- Industries Encouragement Act

- Agricultural Manufactories Act

- Tariff Act

- Hotels Encouragement Act

- Spirits and Beer Manufacture Act

- Family Island Development Encouragement Act

- Free Trade Zone Act

- City of Nassau Revitalization Act

- Bahamas Vacation Plan and Time-sharing Act

- Hawksbill Creek Agreement Act