Investment Factors: A Climate For Business
Freedom From Taxation
One of the most attractive elements about investing in The Bahamas is the tax free status accorded income. There are no taxes levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. This tax freedom is available to all resident corporations, partnerships, individuals and trusts.
Economic and Monetary Stability
Investors are also attracted to the stability of the economy which is steadied by the solid value of the Bahamian dollar. This currency is pegged to the U.S. dollar on a 1:1 ratio. U.S. dollars and Bahamian dollars are used interchangeably throughout the island chain.
A Wealth of Investment Incentives
The inducements of a tax-free environment and a stable currency are enhanced by a series of investment incentives that provide relief from customs duties on approved raw materials, equipment and building supplies, as well as allowing exemptions from real property taxes for up to 20 years.
1. The Hotels Encouragement Act
2. The Industries Encouragement Act
3. The Export Manufacturing Industries Encouragement Act