Bahamas: zero tax one hour's flight from Miami

The Bahamas have never introduced personal income tax. The list of levies administered by their tax authority bears this out: value added tax, business licence, property tax and stamp duty, with no heading for income.

Company profits are not taxed either: the applicable rate is 0%¹, 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.

We do not publish the Bahamian VAT rate, property tax bands or stamp duties: they do not appear in the official sources we have been able to verify, even though these are the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

The absence of income tax in fact masks real indirect taxation, in a country where almost everything is imported and where housing bears an annual property tax.

Finally, the Bahamian dollar is pegged at par to the US dollar, which removes exchange rate risk for a budget in dollars and makes prices immediately readable for an international buyer.

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 US tax residency.

The United States taxes its residents on their worldwide income, and leaving that status is itself costly. This is exactly 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.

The paradox should be stressed: what makes the destination attractive — proximity — is also what threatens the advantage being sought.

Economic permanent residence requires a minimum investment of from $1,000,000², or approximately about €1,000,000³, made in real estate or through the purchase of zero-coupon bonds issued by the central bank.

In both cases, the asset must be held for a minimum period of from 10 years⁴. This is the point most often left out of sales presentations.

The threshold was raised on 1 January 2025; it was previously set at a significantly lower level, which makes any earlier documentation obsolete.

A separate route exists for homeowners: the government states that buying a property worth at least $1,500,000⁵ gives access to accelerated review of the application — processing priority, not an automatic right.

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

• The absence of income tax coexists with real indirect and property taxation.
• The from $1,000,000² investment is locked in for from 10 years⁴.
• Proximity to Florida creates a risk of US tax residency through presence.
• There is no tax treaty between France and the Bahamas.
• Hurricane risk makes insurance expensive and sometimes difficult to obtain.

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, count their days in the United States and have cut their ties with France beyond dispute.