Tax Havens: Bahamas

Emile Justin Cebrian
Far Eastern University Institute of Law

832 (2012 estimate) // Total: $8.The State • Full designation: • Nature of territory: • Location: o Nassau o Archipelago o The Commonwealth Bahamas of the o The Americas (Atlantic side) • Capital city: • Population: • Currency: o 353.658 (2010 estimate) • GDP per capita: o Bahamian Dollar (BSD) o $22.043 billion .

Europe. . That’s because. for Bahamians and resident aliens there are no taxes on personal income. "Tax Havens of the World". and for good reason: "Countries like the Bahamas make tax haven status an integral part of their marketing–relocate to Nassau.“ (Woosley and Eaves. o The Bahamas is likewise touted as “the perfect no-tax haven”. Forbes [2007]) o The Bahamas is the off-shore tax haven of choice for investors from the US. and other developed countries.The Haven • Overview: o The Bahamas is often described as both an off-shore financial center and a pure tax haven. capital gains. inheritance or gifts. and you’ll fear no tax man.

50% for first 50K // 1. partnerships.000 US$50.50% 0.00% for next 50K exempted 0. non-resident and nonresident controlled Bahamian entities and trusts The only direct tax in the Bahamas is a real property tax (rate depends on whether the property is commercial or owner-occupied) Assessed Value Commercial Owner-Occupied ~ US$50.000 0. huehue .50% on all value > 100K Same as immediately preceding but + 1% on all value > 100K It’s not just a haven.000+ Same as immediately preceding but + 1. it’s practically heaven.75% for next 50K US$100.000 – US$100.The Haven • What makes the Bahamas a tax haven? o The Bahamas has: • No personal or company income tax • No capital gains tax • No withholding tax • No business tax • No estate tax • No gift tax • No inheritance tax • No death duties • No employment tax • No sales taxes • No exchange controls • No tax treaties • No probate fees o o This freedom from taxes is enjoyed by resident corporations. individuals.

11.The IBCA • The International Business Companies Act o o Passed on Jan. real estate situated in the Bahamas (unless a lease of office space) • it carries on banking or trust business. • What does the law require for one to be an IBC? o o o o • Benefits that come with IBC status: o o o . etc. 1990 Purpose: providing for the incorporation. registration and operation of International Business Companies ("IBCs") Substantially. • it carries on insurance or reinsurance business • it carries on the business of providing the registered office for companies Minimum number of shareholders required to form a company: 2 The incorporation process takes a measly 24-48 hours Shareholders of IBCs are exempt from all income taxes. capital gains taxes and corporate taxes There is likewise an exemption from inheritance. stamp duties in respect of transfers. succession and gift taxes. or a lease of. to prove non-resident status Any company may be incorporated as an IBC unless: • It carries on business with persons resident in the Bahamas • it owns an interest in. exemption from payment of business license fees. and foreign exchange control regulations No limit to capital.

pdf http://www.com/html/bahamas.mondaq.com/2007/03/15/havens-international-tax-forbeslife-cx_mw_ee_0315taxhavens.htm http://www.com/Caribbean/Bahamas/Taxes-and-Costs o o o .geographia.biz/caribbean_tax_havens/tax_haven_bahamas/ http://www.com/bahamas/investment/inbsco01.geographia. You can wake up now.deloitte.com/x/7406/Environmental+Law/A+Guide+To+International+Business+Companies+In+ The+Bahamas http://www.taxhavens.globalpropertyguide.forbes.com/assets/DcomGlobal/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2013/dttl_tax_highlight_ 2013_Bahamas.html http://www.com/bahamas/investment/trade01. it’s over.html http://www.dunway.Thank you for listening! Yes.htm http://www. • SOURCES: o o o o o http://taxhaven.

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