Bahamas Information

The Spanish called it Bajamar, shallow sea….

In October of 1492, Christopher Columbus, having crossed the uncharted Atlantic Ocean, stumbled onto the shores of San Salvador and became the first European to visit The Bahamas. Our very first tourist! History tells us that the Spanish accepted the hospitality of the Lucayan people of Guanahani, whom they described as a kind, gentle and handsome people, but did not return their kindness. Those who were not killed off by imported European diseases were killed off by the Spaniards or shipped off to Spain where they supposedly died of heartbreak for their islands or of the unaccustomed cold of Europe. After this rude awakening The Bahamas was left alone by the Spanish although their shipping routes routinely took them through Bahamian waters.

The British assumed control of The Bahamas in 1629 and in 1670 The Bahama Islands were granted to the Lords Proprietors of Carolina. A formal governing body and a constitution was now in place. New Providence was the seat of government. New Providence was also a hotbed of pirates, drunken, unruly and outrageous behaviour the norm. However, The British prevailed and with the appointment of Captain Woods Rogers as Governor in 1717, law and order was finally established and the colony grew strong.

In addition to the profitable business of shipwrecking, pineapples, oranges, limes and Sisal were exported to England and the United States. The British retained control until The Bahamas gained its independence on July 9, 1973. The Bahamas is a parliamentary democracy with a population of approximately 305,000.

The Bahamas archipelago is made up of 700 islands and thousands of cays stretching from South Florida to Cuba, covering an area of some 5382 sq. miles. Brilliant blue and turquoise waters and wonderful coral beds alive with vast numbers of living creatures of all size, shape and colour surround these low-lying islands.

It seems from our earliest visitors, the Islands of The Bahamas have drawn people from around the world, intrigued by its history, its beauty, its people and it share of eccentric characters and its tax free environment.

Sales tax in The Bahamas is not an add-on tax, instead it is a hidden tax that is levied on all merchandise imported into the country and merchants are obliged to pay these taxes before goods are released. In addition to customs duties which average 35% on some items or zero on others and up to 300% on luxury items calculated on a cost+insurance+freight basis, Stamp Tax is also added to all imported items and these taxes vary from 2% to 7%.

There are, however, no taxes on profits, dividends, capital gains, gifts, estates, inheritances or wealth. Residents pay neither the hated value-added tax nor goods and services tax and best of all, there are no income taxes, which makes The Bahamas an almost tax-free haven.

Passports are required for all nationals of a foreign country residing in or visiting The Bahamas with the exception of visiting citizens of The U.S. Canada, the U.K. and its colonies. U.S. citizens must show proof of citizenship; a valid passport, birth certificate or naturalization certificate.

The Bahamas welcomes investors whether purchasing a holiday home for private pleasure or investing in business or building hotels or time-share complexes. In 1994 the government introduced The National Investment Policy to support an investment friendly climate and foster economic growth and development of The Bahamas.

Investment incentives include exemption from the payment of customs duties on building materials, equipment and approved raw materials and real property taxes for periods up to 30 years. Of particular interest is the Hotel Encouragements Act and The Family Island Development Encouragements Act.

An international investor seeking to do business in The Bahamas should submit to BIA, (The Bahamas Investments Authority), a project proposal including details of the project envisioned.

Indeed The Bahamas is open for business.