Bahamas Tax Rates
The Bahamas is one of the world's premier tax havens, with no income tax, corporate tax, capital gains tax, or wealth tax. Government revenue is primarily derived from a 10% value-added tax (VAT), import duties, and various fees. The country's tax-friendly environment, combined with its proximity to the United States and political stability, makes it highly attractive for international business, wealth management, and high-net-worth individuals.
Top Income Tax Rate
0%
Corporate Tax Rate
0%
VAT / Sales Tax
10%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
The Bahamas does not impose any personal income tax. There is no tax on employment income, self-employment income, investment income, or any other form of personal income. This applies to both residents and non-residents. The absence of income tax is a constitutional tradition and a cornerstone of the Bahamian economy, attracting high-net-worth individuals, international business companies, and financial services firms.
| Income Range | Tax Rate |
|---|---|
| B$0+ | 0% |
Corporate Tax
The Bahamas does not impose corporate income tax. Companies incorporated in the Bahamas are not subject to tax on profits, regardless of whether the income is sourced domestically or internationally. The Bahamas is a major international financial center with thousands of registered companies, investment funds, and trusts. The absence of corporate tax, combined with strong banking secrecy laws (though these have been relaxed for international compliance), makes the Bahamas attractive for international business structures.
Standard Rate
0%
Capital Gains Tax
The Bahamas does not impose any capital gains tax. Gains from the sale of real estate, shares, businesses, or any other assets are completely tax-free. This applies to both residents and non-residents.
Rate
0%
VAT / Sales Tax
The Bahamas introduced VAT in January 2015 at 7.5%, which was increased to 12% in 2018 and subsequently reduced to 10% in 2022. The VAT applies to most goods and services. Essential items including breadbasket food items, medicine, and educational supplies are zero-rated. Financial services, insurance, medical services, and residential rental are exempt. Businesses with annual turnover exceeding BSD 100,000 must register for VAT. The government also levies significant import duties (0-45%) which are a major revenue source.
Standard Rate
10%
Cryptocurrency Tax
The Bahamas does not tax cryptocurrency gains, as there is no income tax or capital gains tax. The country has been proactive in regulating digital assets through the Digital Assets and Registered Exchanges (DARE) Act of 2020, which provides a regulatory framework for crypto businesses. The Central Bank of the Bahamas also launched the Sand Dollar, one of the world's first central bank digital currencies (CBDCs), in 2020.
Tax Treaties
The Bahamas has very few double taxation agreements, with only one comprehensive treaty (with the United Kingdom). However, the Bahamas has signed Tax Information Exchange Agreements (TIEAs) with over 30 countries, including the United States, Canada, and major European nations. The Bahamas participates in the Global Forum on Transparency and Exchange of Information for Tax Purposes and has committed to the Common Reporting Standard (CRS) for automatic exchange of financial information.
Treaty Network
1
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Bahamas
See how much you could save by moving here from your current country.
+$20K
Tax in United States
$24K
24.4% effective
Tax in Bahamas
$4K
3.9% effective
You Save
84%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
