Bahamian Tax Advantages

Offshore Tax Haven

You will have to make an effort to find anything on which you can pay taxes in the Bahamas. Nothing is levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. This applies not only to individuals, but also to all resident corporations, partnerships and trusts.

Accelerated consideration for annual or permanent residence is given to major investors and owners of upscale Bahamian property (such as that available through February Point). Immediately upon application to the Director of Immigration, all international persons owning residences in The Bahamas are eligible to receive a "Home Owners Card" which entitles the spouse and children of the owner (as well as the owner) to enter and remain in The Bahamas for the duration of the validity of the card.

Financial Center

Financial services constitute the second-most (after only tourism) important sector of the Bahamian economy, due to the country's status as a tax haven and offshore banking center. There are to date, 267 banks and trust companies in The Bahamas. One in 10 Eurobonds are traded here. Secrecy laws are similar to those of Switzerland.

The stability of the government and its currency, its progressive legislative and regulatory structures, convenient air transportation, modern infrastructure and excellent telecommunications system have attracted many of the world's largest and most prestigious financial institutions.

The International Business Companies (IBC) Act, passed in January 1990, has enhanced the country's status as a leading financial center by simplifying and reducing the cost of incorporating in the The Bahamas. Within 9 years, more than 84,000 IBC-type companies had been established. Since 1991, when the government legalized the establishment of Asset Protection Trusts, The Bahamas has been a world leader in asset protection.

The Bahamas is a signatory of the International Monetary Fund Agreement, under which there are neither restrictions placed on current account transactions nor on the repatriation of profits.

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February Point will provide a referral to one of the pre-eminent Bahamian law firms to advise you on individual and corporate issues - for example, asset protection, offshore incorporation etc.

The Hotels Encouragement Act, The Industries Encouragement Act, The Export Manufacturing Industries Encouragement Act, The Bahamas Free Trade Zone Act, Agricultural Manufactories Act, Freeport on Grand Bahama Island, Tariff Act, The Spirit and Beer Manufacture Act are among many business-friendly bills enacted by the Bahamian government to encourage investment. These measures include providing exemptions from customs duties and property taxes and interest free loans for a panoply of industries.

In addition:

» International Financing – availability of direct financing and loan guarantees to foreign investors

» Exemptions from business licensing fees for up to 20 years

» Facilitated Incorporation and Registration

» Work permits are speedily granted for key personnel. For other personnel, the Bahamas Investment Authority can be counted on for cheerful cooperation provided they are given sufficient notice.