NATIONAL INVESTMENT POLICY

Economic Policy

The Government of the Commonwealth of The Bahamas is committed to building an economic environment in which free enterprise can flourish; where the Government assumes its proper role as regulator and facilitator of economic development; where the ideals of transparency, fair play and equality of treatment are paramount; and a policy that maintains a stable society in which all people are afforded the opportunity to realize their maximum potential. In this regard, the National Investment Policy is designed to support an investment friendly climate; guarantees the complementarity of Bahamian and overseas investments; fosters appropriate linkages with all sectors of the economy, in particular, the tourism and financial services sectors; encourages the exploitation of our natural resources in an environmentally sound and sustainable manner; provides for the maximum level of employment; guarantees an acceptable level of economic security and generally foster the economic growth and development of The Bahamas.

The Investment Environment

To undergrid the National Investment Policy the Government will provide:

• A politically stable environment conducive to private investment;
• An atmosphere where investments are safe and the expropriation of investment capital is not a considered option;
• 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;
• A stable macroeconomic environment bolstered by a prudent fiscal policy, a stable exchange rate, flexible exchange control rules and free trade;
• An environment in which freedom from Capital Gains, Inheritance, Withholding, Profit Remittance, Corporate, Royalties, Sales, Personal Income, Dividends, Payroll and Interest taxes is ensured;
• Essential public services, an adequately equipped police constabulary, modern health and education facilities and other social service;
• Dependable public utilities; and
• Essential public infrastructure such as roads, ports and airports.
• International Financial Centre

The Government is committed to enhancing the image of The Bahamas as an international financial centre. To this end the Government will:

• maintain the Bahamas as a leading financial services centre;
• monitor all developments in the international financial markets and amend any rules, regulations or legislation that would preserve and enhance the competitiveness of the financial services sector of the Bahamian economy;
• ensure the operation of a clean financial centre with specific rules and regulation to prevent the laundering of criminally derived assets;
• support The Central Bank of The Bahamas in its commitment to bank supervision and promoting high standards of conduct and sound banking practices;
• support the self regulatory measures of the Association of International Bank and Trust Companies (AIBT), particularly, the established code of conduct for bank and trust companies;
• continue enforcement of our bank secrecy laws.

Investment Incentives

Investment incentives under the following Acts include exemption from the payment of customs duties on building materials, equipment and approved raw materials, business licensing fees and real property taxes for periods up to twenty years:

The Export Manufacturing Industries Encouragement Act
The Industries Encouragement Act
The Agricultural Manufacturers Act
The Tariff Act
The Free Trade Zone act
The Hotels Encouragement Act
The Spirits and Beer Manufacturers Act
NOTE: Custom duty exemptions do not apply to personal consumables.

Investors may acquire publicly owned lands for approved developments on concessionary terms; and
Acquire low cost space for lease for industrial enterprises.
Government will provide special training and retraining for Bahamian workers to ensure the continuing availability of a highly skilled labor force.


General

To ensure the maximum benefit to The Bahamas from the National Investment Policy, certain immigration provisions will apply:

International Owners of Second Homes: Overseas Investors may acquire residential properties in The Bahamas of up to five acres without prior Government approval. Such acquisitions are required to be registered in accordance with the International Persons Landholding Act. Second Home Owners are eligible for a Home Owners Residence Card, renewable annually. This card will:

facilitate entry into The Bahamas, entitle the owner, his spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card. Application may be made to the Director of Immigration.

Annual or Permanent Residence: Accelerated consideration of applications for annual or permanent residence will be given to: -major international investors; and --fit and proper owners or residence valued at $500,000 or more.



Current Real Estate Legislation, Stamp Duties and Taxes... Yes! You CAN buy real estate in The Bahamas

In 1994 it became much easier for non-Bahamians to purchase real estate in The Bahamas.

Effective January 1, 1994, the government of The Bahamas introduced new legislation to facilitate the purchase of land in The Bahamas by non-Bahamians. This Legislation is cited as "The International Persons Landholding Act, 1993." The important provisions of this Act are as follows:

It provides that a non-Bahamian (other than a permanent resident or a non-Bahamian acquiring land or an interest in land under a devise or by inheritance) may purchase a condominium, or property for use as a single family dwelling or for the construction of such a dwelling without the need of a permit provided the property is no more than 5 acres in size. The purchaser must, however, apply to the Secretary upon the receipt of the respective fee specified in the schedule shall register the purchase or acquisition in the Register and shall issue a certificate to the applicant.

A permanent resident may purchase land without a permit but must also register the purchase on acquisition as above.

No permit is required by a non-Bahamian if land or an interest in land is acquired by reason of device or inheritance but the acquisition must also be registered.

A non-Bahamian (other than a permanent resident or non-Bahamian acquiring land or an interest in land under a devise or inheritance) who wishes to acquire five or more contiguous acres of land in The Bahamas must apply for a permit from the Board on the requisite form stating the intended use for the land. Otherwise any such acquisition shall be null and void in the absence of such permit.

The Act exempts banks and trust companies and insurance companies who acquire interests in land under a mortgage from the requirement to obtain a permit.

The Act exempts banks and trust companies and insurance companies who acquire interests in land under a mortgage from the requirement to obtain a permit. Again, the acquisition need only be registered.

The Act provides that certain business leases be registered with the Board where the lease is for 21 years or more. Otherwise, the lease is defective.

The Act provides that the stamp duty payable by a non-Bahamian is the same as in the case of a Bahamian.

The Act also enables a non-Bahamian who owns and maintains a home in The Bahamas to obtain an annual home owner resident card upon application to the Director of Immigration and payment of the specified fee in the Schedule. This card shall entitle the applicant, his spouse and minor children (if any) to enter and remain in The Bahamas for the duration of the card unless their entry is otherwise barred under the Immigration laws.


SCHEDULE OF FEES

Application for registration - $25.00
Application for permit - $25.00
Certificate of registration:
a. the value of the property is $50,000 or less - $50.00
b. the value of the property is $101,000 and over - $100.00
Home owner resident card - $50.00
GOVERNMENT STAMP TAX ON PROPERTY CONVEYANCES

A graduated tax is payable on the conveyance of all real property in The Bahamas based on the value as follows:

Up to and including $20,000 - 2%
From $20,000.01 to $50,000 - 4%
From $50,000.01 to $100,000 - 6%
From $100,000.01 to $250,000 - 8%
Over $250,000 - 10%
This tax is shared equally (50/50) by the buyer and the seller.

LAWYER FEES

Both the buyer and the seller are responsible for 2.5% legal fees on the sale of property.

RATES OF TAXES

Effective from January 1, 2003, the rates of tax on real property are as follows:-

The first $250,000 is tax exempt.
On that portion in excess of $250,000 and less than $500,000 the rate of tax is ≤ percent of the market value of the property.
On that portion in excess of $500,000 the rate of tax is 1% of the market value of the property.
The maximum annual tax will not exceed thirty five thousand dollars.
As of the 1st day of January and shall expire on the 1st day of January 2008:

Every application by a person for the exemption of stamp duty on instruments relating to the acquisition and mortgage of real property valued at two hundred and fifty thousand dollars or less, to be used exclusively by the owner of such real property as a first time dwelling house shall be made in writing to the Minister of Finance and such application shall be accompanied by an affidavit by such person stating that he intends to occupy and reside in such house and there is no other house being held on his behalf for which an exemption has already been granted.

WHAT YOU NEED TO KNOW ABOUT IMMIGRATION

Bahamian immigration rules are designed with the view that everyone wants to immigrate to the tiny Bahamas - which, if this were to occur, would sink under the weight. Consequently, while tourism and investment are encouraged, true immigration is possible but tightly controlled. Visas, work permits and residency permits are available.

General: Everyone entering The Bahamas MUST fill out an embarkation-disembarkation card usually provided by the travel agent, airline or ship. Non-residents surrender the specified part when departing.

NEW REQUIREMENTS FOR U.S. CITIZENS:

The Islands Of The Bahamas Implements Same Entry Requirements as the U.S.

The Bahamas is Accepting Government Issued Photo ID and
Proof of Passport Application for Entry

NASSAU, The Bahamas, June 18, 2007 - The Islands Of The Bahamas announced today that its Department of Immigration would accept a valid, government issued photo ID along with the proof of passport application for entry into the destination, following the United States' announcement that it was temporarily suspending the requirement for air travelers to present a passport for re-entry into the United States.

Potential visitors to The Islands Of The Bahamas who are concerned that a passport may not arrive in time for their scheduled, or proposed, travel dates should be advised that the U.S. Department of State has temporarily revised enforcement of the Western Hemisphere Travel Initiative from now until September 30, 2007. This reprieve and cooperation from The Islands Of The Bahamas should alleviate concerns and remove impediments to summer travel.

From the U.S. Department of State Web site:

"U.S. citizens traveling to Canada, Mexico, the Caribbean, and Bermuda who have applied for but not yet received passports can nevertheless temporarily enter and depart from the United States by air with a government issued photo identification and Department of State official proof of application for a passport through September 30, 2007."

From now until September 30th of this year, you may confidently plan a vacation to The Bahamas even if your passport has not yet arrived. During this time official proof that you have applied for a U.S. passport (passport status notice downloaded from the State Department Web site at http://travel.state.gov) along with a government issued photo ID such as a driver's license will be sufficient for air travel to and from the U.S. and The Islands Of The Bahamas.

Travelers must have at least made application for a passport prior to travel to qualify.

VISAS & PASSPORTS NOT REQUIRED FOR:

-Canadian citizens, United Kingdom subjects and those of British Colonies unless stay exceeds 3 weeks.

-U.S. Citizens, visas are not required for U.S. citizens entering as bona fide visitors if stays are for eight months or less.

VISA NOT REQUIRED FOR:

-Canadian Immigrants possessing Canadian Immigration Record and visa on single visit of less than 30 days.

-US Alien Residents possessing "Green Card" or U.S. Alien Registration Card, except South African nationals who always require a valid passport and visa. Transit Without Visa: Dominican Republic Passports but no visa (Up to 8-month stay): Citizens of Belgium, Greece, Iceland, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, San Marino, Switzerland, Turkey, U.S.; (3 Months or less) Austria, Denmark, Federal republic of West Germany, Finland, France, Irish republic, Israel, Japan, Mexico and Sweden; (Not more than 14 Days) Argentina, Bolivia, Brazil, Chile, *Columbia-if traveling from a U.S. port, unless in transit; Equador, Guatemala, Republic of Honduras, Nicaragua, Costa Rica, Panama, Paraguay, Peru, Uruguay, Venezuela and El Salvador.

NO VISA REQUIRED:

Persons possessing a valid Bahamian residence or work permit from the Director of Immigration; persons in transit including stateless persons with valid refugee and stateless person document if they have tickets onward and stay no longer than three days.

*Other restrictions apply.

VISAS REQUIRED:

By All others. Applications should be made to the nearest Bahamian or British Consular Office. Citizens of Haiti and South Africa ALWAYS require visas, even in direct transit by air.

VISAS & PASSPORTS REQUIRED:

All Communist countries, Dominican Republic except in transit, Haiti, South Africa. If in doubt, check with the Immigration Department, P.O. Box N-831. Nassau, The Bahamas. Tel. (809) 322-7530.

MAXIMUM STAY:

8 months with proper documents including a return ticket and evidence of financial support. Those wishing longer stays may apply for temporary residence to The Director of Immigration Department, P.O. Box N-831. Nassau, The Bahamas. Tel. (809) 322-7530. Visitors and temporary residents may not engage in gainful employment while in The Bahamas.

CITIZENSHIP, RESIDENCY & WORK PERMITS:

Bahamian Immigration Department permits are needed for those who wish to reside, work or engage in business, including selling. Applications must be supported with these documents: A police certificate covering the last five years or in the UK, a sworn affidavit of good character; two character references from responsible persons in the home country or The Bahamas; two full face photographs signed on the back by the applicant (max. size 3 x 3 inches; min. size 2 x 2 inches) and a valid health certificate not more than 30 days old.

CITIZENSHIP:

The Bahamas Constitution and the Bahamas Nationality act, 1973, detail the acquisition and loss of citizenship. Persons born in The Bahamas before July 10, 1973, or outside The Bahamas to a Bahamian farther became Bahamian Citizens on Independence Day, July 10, 1973, as did most persons registered as a citizen of The Bahamas under the British Nationality Act of 1948. Persons born in The Bahamas after Independence are citizens if either parent is a Bahamian citizen and are entitled to register as a citizen if born here, subject to interests of national security or public policy, by making application within 12 months after his or her 18th birthday. Persons born legitimately outside The Bahamas after July 9, 1973 to a Bahamian mother and illegitimate children born outside The Bahamas to Bahamian women are entitled to apply between the ages of 18 and 21 years subject to interest of national security or public policy. Any woman married to a Bahamian is entitled to be registered as a citizen upon application provided she is still married to that person and subject to interest of national security or public policy.

Others who are not entitled to be registered or naturalized by virtue of an existing status may apply for citizenship under the Nationality Act. Residence for a period, English proficiency and the intention to make The Bahamas a permanent home are among the qualifications.

ANNUAL RESIDENCY:

A head of household pays $1,000 plus $20 per dependent. Male spouses of Bahamians pay only 4100, annually, with no charges for dependents. Applicants must show evidence of financial support.

PERMANENT RESIDENCY:

Those who wish to settle in The Bahamas by investing in property, retiring here or opening a business usually apply for this status. Applicants must be of good character, show evidence of financial support, and say in writing that they wish to live permanently in The Bahamas. Wives and dependent children (under age 18) usually resident in a household can be endorsed on the certificate when the original application is made or later, subject to conditions which may be made by the Immigration Board.

Persons with this status prior to the Immigration act (1975) continue to hold the status automatically. Spouses of Bahamian can receive a Certificate of Permanent Residence with the right to engage in gainful employment at any time for females and after five years of marriage for males. Permanent residency can be revoked for cause including divorce. Cost of Permanent Residence is $5,000 before issuance, with endorsements free. Permanent Residents who were formerly "belongers" (British subjects) keep the status for life with no fee and no restriction regarding employment.

WORK PERMITS:  

The Bahamas Government tries to ensure that Bahamians are given fair consideration for employment. A work permit application is not considered if a suitably qualified Bahamian is available or if the prospective employee is already in the country and entered as a visitor. If the Immigration Board considers the prospective non-Bahamian employee will be an asset to the Bahamas it reviews the application, but only after the prospective employer advertises and interviews locally and obtains a certificate from the Labour Exchange stating there is no qualified Bahamian registered who could fill the post.

Permits for longer than one year may be given for key personnel on contract, often with an endorsement that the employee will be replaced by a Bahamian or will train a Bahamian to perform the job in a specified time.

Each work permit is for a specified person and job. A permit holder may apply for a new permit for a new post without leaving the island.

 

DEMOGRAPHICS

Starting 60 miles off the coast of South Florida and stretching as far south as Cuba, Haiti and the Dominican Republic, The Bahamas is a coral archipelago of 700 islands, 29 of which are inhabited, and over 2,000 rocks and cays.

With a population of some 269,000 people, most of whom live on the major islands (New Providence, Grand Bahama, Eleuthera, Abaco, Exuma, Long Island, Inagua, Cat Island, Bimini and Andros), and with an adult literacy rate of 95%, The Bahamas, an English speaking country, has a capable and adable work force.

The term, Isles of June has often aptly been used to describe the Bahamas due to its mild climate. Having a tropical maritime wet and dry climate, with slight incursions of mildly polar air, generally the Bahamas does not experience extremes of temperatures. The humidity is fairly high, especially in the summer months, but there is usually a pleasant breeze which lessens the humid effect. Rain showers can occur at any time of the year, but the rainy months are May to October. Rainfall is mainly in the form of heavy thundershowers, which clear quickly.

INFRASTRUCTURE

The Bahamas has comprehensive and modern infrastructure, particularly on the two major islands, New Providence and Grand Bahama, where most of the population live. Electricity and water are in abundant supply. Telecommunications services and facilities in The Bahamas are state-of-the-art, with direct international links provided through a 100% digital switching system.

GOVERNMENT

The Bahamas declared independence from Great Britain on July 10, 1973, a new Constitution became the supreme law of the land for the Commonwealth of The Bahamas. The Constitution of the Bahamas proclaims the islands as a sovereign democratic state, sets forth requirements for citizenship and guarantees fundamental human rights. The Bahamas retains its ties with the Commonwealth of Nations (formerly the British Commonwealth) and also retains the British monarch as its head of state. The Queen is represented in The Bahamas by a Governor General who is appointed and serves at Her Majestys pleasure.

CURRENCY

The legally acceptable currency of The Bahamas is the Bahamian dollar. Although all other currencies are foreign, the U.S. dollar is normally accepted throughout The Bahama islands and is on par with the Bahamian dollar. The Exchange Control is administered by The Central Bank of The Bahamas.

ECONOMY

The Bahamas is a stable developing nation, according to a United States of commerce report by the U.S. Embassy in Nassau. The economy is based mostly on tourism and offshore banking. Retail and wholesale distributive trade, manufacture, agriculture and fisheries are the other major sectors of the economy. The Gross Domestic Product (GDP) of The Bahamas exceeds $3 billion, 60% of which comes from tourism related activities. The per capita income of the country is $11,000.