Bahamas: economic residence one hour from Miami

The Bahamas Department of Immigration grants permanent residence to foreigners making a minimum investment of from $1,000,000¹, or approximately about €1,000,000².

The investment can take two forms: real estate, or the purchase of zero-coupon bonds issued by the Central Bank of The Bahamas.

In both cases, the asset must be held for a minimum period of from 10 years³. This is the point most often left out of sales presentations: the capital is locked in for a decade.

The threshold was also raised on 1 January 2025; it was previously set at a significantly lower level. Any documentation prior to that date is therefore obsolete.

A separate route exists for homeowners: the government states that buying a property worth at least $1,500,000⁴ gives access to accelerated review of the application — processing priority, not an automatic right.

The Bahamas have never introduced personal income tax. Company profits are not taxed either: the applicable rate is 0%⁵, with only the business licence, based on turnover, payable.

One exception has been introduced: the domestic minimum top-up tax applies to multinational groups whose consolidated revenue reaches the threshold set by international rules. Small entities are expressly excluded.

The absence of income tax does, however, mask real indirect taxation: a consumption tax in a country where almost everything is imported, an annual property tax, and stamp duty on transfers.

We do not publish the Bahamian VAT rate, property tax bands or stamp duties: they do not appear in the official sources we have been able to verify, even though these are the levies that actually weigh on a resident.

There is also no tax treaty between France and the Bahamas: no treaty mechanism exists to settle a case of dual residence.

The distance argument is real: Nassau is one hour's flight from Miami, with numerous connections. For a resident whose interests are in North America, this is a considerable advantage.

It nevertheless calls for particular vigilance. Frequent stays in the United States can, through the substantial presence test, create tax residency there — which is precisely what a Bahamian resident is trying to avoid.

This risk is specific to destinations close to the United States and is rarely pointed out. It is managed by rigorously counting days and, where appropriate, by completing the formalities provided for this purpose.

Finally, hurricane risk is the major practical constraint. It makes insurance expensive and sometimes difficult to obtain, depending on the construction and exposure of the property; Hurricane Dorian demonstrated in 2019 how extensive the destruction can be.

• The from $1,000,000¹ investment must be held for from 10 years³.
• The threshold was raised on 1 January 2025: earlier documentation is obsolete.
• The absence of income tax coexists with real indirect and property taxation.
• There is no tax treaty between France and the Bahamas.
• Proximity to Florida creates a risk of US tax residency through presence.

The Bahamas therefore belong to a specific category: destinations where the tax advantage is genuine but where the cost of entry, running costs and climate exposure restrict the scheme to substantial fortunes. The country suits those who have significant capital, are willing to lock it in for a decade and have cut their ties with France beyond dispute.