Bahamas
Top Income Tax
0%
Marginal rate
Corporate Tax
0%
Standard rate
VAT / Sales Tax
10%
Standard rate
Capital Gains
0%
Standard rate
Overview
The Bahamas is a zero-tax paradise with no income, corporate, or capital gains taxes. Revenue comes primarily from VAT and import duties. The BEATS program makes it easy for remote workers to relocate. High cost of living and import dependency are the main drawbacks.
Income Tax Brackets
| Income Range (BSD) | Tax Rate |
|---|---|
| 0+ | 0% |
No personal income tax, capital gains tax, or wealth tax.
Corporate Tax
Standard Rate
0%
No corporate income tax. Business license fees apply based on turnover.
VAT / Sales Tax
Standard Rate
10%
Reduced Rates
0%
10% VAT standard rate (reduced from 12% in 2022). 0% on breadbasket items.
Capital Gains Tax
Standard Rate
0%
No capital gains tax.
Social Security Contributions
Employee
3.9%
Employer
5.9%
Self-Employed
8.8%
NIB (National Insurance Board) contributions.
Special Tax Regimes
HEART (Bahamas Residence Card)
Permanent residency for high-net-worth individuals making economic contribution.
Eligibility: Must purchase property of at least BSD 750,000 or invest in approved project.
Digital Nomad Visa
BEATS (Bahamas Extended Access Travel Stay). Must earn at least USD 750/year (effectively no minimum). Valid 1 year.
Pros & Cons
Pros
- Zero income tax
- Zero corporate tax
- Zero capital gains tax
- BEATS digital nomad program
- Beautiful Caribbean location
Cons
- High cost of living
- 10% VAT
- Limited domestic economy
- Hurricane risk
- Dependent on imports
- Very few tax treaties
Living Indicators
Cost of Living Index
Expensive
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Bahamas is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Bahamas government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.