Bahamas Economic Permanent Residence | An Incomplete Guide

Overview:

Since July 2021, the government of the Bahamas has initiated an Economic Permanent Residence program targeting global investors. This program offers permanent residency with the freedom to work and live in the Bahamas to investors who fulfill specific investment criteria.

It has always been very difficult to obtain a permanent residence card in the Bahamas, and the Economic Permanent Residence program is currently almost the only route for swiftly securing permanent residency there.

As of now, the Bahamian government has not established a uniform minimum investment amount for the Economic Permanent Residence program. According to the State Immigration Service, the minimum required investment is $750,000, while the Investment Agency sets it at $1.5 million.

In practice, however, overseas investors who inject at least $500,000 into real estate or business operations within the Bahamas are generally assured of gaining this economic permanent residency status.

The Economic Permanent Residence is a permanent residency permit that does not require renewal. However, every ten years, holders must update their resident identity information by submitting a report to the Bahamian Immigration Agency.

Additionally, economic permanent residents face two key conditions to maintain their status:

1. The investment must be held for over ten years; after this period, one can apply for Bahamian citizenship. If opting not to become a citizen, it is advisable to continue the investment.

2. Economic permanent residents are required to reside in the Bahamas for at least 90 days each calendar year.

Application Process:

To apply for the Bahamas Economic Permanent Residency Program, you need to first enter the Bahamas, open a bank account, transfer funds, complete the investment, and then gather all the necessary documents to submit your permanent residency application to the local immigration office.

The required documents for this program include:

1. Applicant’s identification documents: These should include valid passports for both the main applicant and any dependents; two passport-sized photos; birth certificates; and marriage certificates or other proof of relationship for dependents.

2. Proof of completed investment.

3. Proof of assets: You need to demonstrate that you have sufficient financial resources to support your family’s life in the Bahamas after completing the investment.

4. Medical certificate: All main applicants and dependents must undergo a medical examination.

5. Certificate of no criminal record: All adult main applicants and dependents must provide a certificate of no criminal record issued by the local law enforcement agency.

The Bahamian government processes the Economic Permanent Residency Program relatively quickly, and the entire project can be completed in as little as three months. Additionally, if your investment amount is exceptionally large (over $1.5 million USD), the processing time by the Bahamian government will be shortened to within 21 working days.

Dependents:

The Bahamas Economic Permanent Residency Program allows the spouse of the main applicant, economically dependent children, and parents to simultaneously obtain residency as dependents.

Taxation:

The Bahamas is renowned as one of the tax havens in the Caribbean region. The local government does not impose income tax, capital gains tax, inheritance tax, or gift tax on residents. Instead, their main sources of revenue include value-added tax (VAT), stamp duty, import taxes, and various licensing fees.

As a Bahamian tax resident, you’ll encounter the following key taxes:

1. Value-Added Tax (VAT): The Bahamas has two VAT rates—either 0% or 10%.

2. Stamp Duty: Ranging from 2.5% to 10%.

3. Property Tax: For properties valued below $500,000, the tax rate is 1%. For properties valued above $500,000, it’s 2%, with a maximum limit of $60,000.

Citizenship:

After residing in The Bahamas for a minimum of ten years (six months per year) with Bahamian economic permanent residency, investors who renounce their original nationality can apply for naturalization and Bahamian citizenship.