The Bahamas - The Best Tax Haven in America
The Bahamas is one of the largest tax havens in the world - by almost any measure. It has state-of-the-art communications and excellent flight connections to the USA and to Europe. There is no personal or corporate income tax, no capital gains tax, no sales tax, no withholding tax, no employment tax, no gift tax, no inheritance tax, and no probate fees in the Bahamas. The governments main sources of revenue are company registration fees and customs duties.
More than 270 years of uninterrupted parliamentary democracy makes the Bahamas one of the most stable countries in the world. It is a major financial centre with more than 400 banks and trust companies, one of the most important jurisdictions for international business companies, and an excellent place for tax-free residence for financially independent individuals.
The Constitution, which has been in effect since 1973, declares that the Commonwealth of the Bahamas is a sovereign democratic state. It guarantees fundamental human rights, such as freedom of expression and assembly. Prior to its independence in 1973, the Commonwealth of the Bahamas was a British Colony. To this date, the Bahamas remains a member of the Commonwealth and also holds membership in the United Nations and the Organization of American States (OAS). The political system is based on the British parliamentary system.
The Bahamian Judiciary is fully independent from the the government. English Common Law forms the basis of the legal system although many Bahamian statutory elements have been added over the years. The Supreme Court is the main court in the Bahamas. Its decisions may be appealed before The Bahamas Court of Appeal. Final appeals may be presented to the Privy Council in London.
The population is approximately 255,000 centred principally on the capital city of Nassau on the island of New Providence. The economy is heavily dependent on tourism and banking. Tourism alone accounts for more than 60% of GDP and directly or indirectly employs 40% of the archipelago's labor force.
The Bahamas have an excellent range of international banks based in the islands with approximately 400 bank and trust companies registered there. Confidentiality is excellent with the English common law duty of confidentiality being preserved and expanded upon by statute. Additionally, the Bahamas have no tax treaties or agreements for the exchange of information with any other state except agreements covering mutual assistance in cases of drug trafficking.
The Bahamas offer many advantages, including:
- No income or capital gains tax, no inheritance tax
- No double taxation agreements
- Excellent jurisdiction for incorporating offshore companies
- Major banking centre
- Attractive lifestyle and ideal location near the US mainland
- Excellent access by sea and the international airport of Nassau
Read the article in Vault (OFC Publications, September 2002) by Raymond T. Gibson, Henley & Partners, The Bahamas
To establish yourself or your business in the Bahamas will require securing relationships with key partners such as government officials, bankers and corporate professionals. You need experienced consultants to build a network of contacts and to help you to become established in your new environment.
The specialised services of Henley & Partners are a resource and complement to major law and consulting firms. We can help other firms and their clients with the unique and specific details required by the immigration and business relocation process and related tax planning.
Further Information
Through its offices in the Bahamas, Henley & Partners assist foreign individuals in obtaining residence status, and advise corporations and investors about all aspects of investing and doing business in the Bahamas, including comprehensive and efficient company incorporation and management. Please contact us for more information or to arrange for an initial personal consultation.
