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Bahamas: tax, residence and citizenship

The Bahamas is relevant to high-net-worth households seeking a genuine residence base without domestic personal income tax. Economic permanent residence has a substantial investment requirement and long holding period. Property costs, immigration permissions and continuing UK obligations remain important parts of the overall decision.

Sources last checked · Research methodology

Tax relocation in Bahamas

The Department of Inland Revenue’s guidance expressly states that The Bahamas has no domestic personal income tax regime. This does not make every activity or purchase tax-free: property, consumption and business charges need separate assessment. It also does not cancel another country’s taxing rights. A UK household must test its actual departure, retained accommodation, work and family ties, as well as continuing UK-source income and inheritance-tax exposure. The economic-residence certificate is an immigration status, not a universal certificate proving entitlement under every tax treaty.

Residence rights

The Immigration (Amendment) (No. 2) Act 2024, effective from 1 January 2025, requires a qualifying BSD 1 million investment for at least ten years in Bahamian real estate or Central Bank zero-coupon bonds. The legislation also requires investment documentation and excludes a deed of gift as a qualifying real-estate investment. Approval and the work rights attached to the certificate should be checked for the intended activity. Family inclusion, health insurance, application charges and continuing compliance need an individual quotation. Permanent residence does not automatically produce Bahamian citizenship.

Second citizenship

Residence is separate from citizenship. Any naturalisation, family or descent route requires its own eligibility review.

What to establish first

  • Qualifying real estate or Central Bank zero-coupon bonds: BSD 1 million.
  • Minimum investment holding period: ten years under the amended legislation.
  • Provide prescribed evidence; a deed of gift does not qualify as the investment.
  • Confirm the certificate’s work conditions and family permissions.

Consider the trade-offs

  • The investment holding period creates a material liquidity commitment.
  • A no-income-tax system still has property, consumption and business costs.
  • Residence approval and subsequent citizenship are different processes.
These are research findings, not an individual eligibility or tax determination. Confirm current rules and your circumstances before committing funds or moving.

Official sources and further reading

Immigration (Amendment) (No. 2) Act 2024 Office of the Prime Minister 2024/2025 Budget Communication Department of Inland Revenue guidance confirming the absence of domestic personal income tax