How are you taxed?
The Bahamas is a tax friendly environment, but it’s a mistake to think that The Bahamas is a tax-free jurisdiction. Every government must find ways of paying expenses. The Bahamas government is no exception. In The Bahamas there are various forms of taxation as follows:
- 0% tax rate on income, dividends, capital gains, wealth and inheritance.
- 10% VAT on almost all goods and services, except essentially food items and some medical services.
- 2.5% – 10% stamp duty on real estate transactions
- 0% – 1% property taxes on owner-occupied real estate and up to 2% on commercial property
- 0% – 40% import duties, which apply to many essential items need on the island + VAT.
At face-value, The Bahamas can seem like a zero-tax paradise, but don’t be deceived, there are taxes in the Bahamas like every territory in the world. Be sure to consult a tax specialist to ensure that you know well your tax obligations, particularly if you are from a country that has a worldwide tax system (i.e. taxes are applicable to all domestic-source, as well as the foreign-source income).