Are you a US Expat living in the Bahamas? Did you know that the United States taxes its citizens and U. If you do not reside within the US or its territories or have any US income, you are still required to file an income tax return and pay taxes on your worldwide income. Congress has passed some very confusing new tax laws, which go into effect this tax season.
By changing everything around, Congress has made filing an accurate return nearly impossible. Very costly penalties can be imposed if you do not report correctly. Not sure what to do? Have questions about your own tax situation? Get started today! We specialize in handling past due tax returns.
With our help, we can get you back on track with the IRS. What if I am paying income taxes in the Bahamas? Do I have to pay taxes to the US? There are opportunities for U. But you must file a tax return with the Internal Revenue Service to qualify for these benefits. Preparing tax returns is always a hassle. US expatriate taxes add even more frustration because of the special tax rules for Americans citizens and Green Card Holders living abroad.
There are many tax risks with filing a return for expatriates and green card holders, but there are also many opportunities. We offer flat fee rates for our services. As a valued client, you get a secure, password-protected portal to store and access your important financial documents from anywhere at any time. To start using the client portal please log in using this form or register here.
Just need to send us a file? Don't worry, you don't even need an account! Just use our convenient SecureSend page. Do I need to file taxes if I am living in the Bahamas? Citizens married to Non-U. Got Documents? Portal Login E-Mail:. Skype: myaccountant.There are rare exceptions to this, so check your bill before paying.
Gratuities are usually included. This is not unusual in The Bahamas, but something to be aware of. While Shopping in the Bahamas, most products are not only tax free but free from Duty when bringing them back home. Check your local customs for details. Liguor is noticeably less expensive, and can be purchased to drink while on vacation, or pack to bring home. Again, each country has it's limites.
The Bahamas Tax Rates
US allows 2 litres of alcohol per adult. Log in to get trip updates and message other travelers. Bahamas Traveler Article: Bahamas: Taxes. This article contains a discussion by Tripadvisor members concerning the above topic. Please note that the discussion was closed to any additional postings as of Nov 1, and, as such, some of the information contained herein may be outdated and cannot be commented on by travelers at this time.
Please take this into account when making your travel plans. Duty Free Shopping While Shopping in the Bahamas, most products are not only tax free but free from Duty when bringing them back home. TripAdvisor LLC is not responsible for content on external web sites. Taxes, fees not included for deals content. About Us Help Center. United States.This is because citizens of the Bahamas and resident aliens pay no taxes on personal income, inheritance, gifts, or capital gains.
The Bahamas is an international center for banking activities that attract foreign financial institutions because of its reputation for stability. A parliamentary democracy of the Bahamas has governed the island nation continuously since Bahamian laws protect the right to privacy of bank clients. Strict Bahamian laws also prohibit illicit financial activity, such as money laundering.
The Central Bank of The Bahamas regulates foreign financial entities by providing a secure environment for banks specializing in private banking, mutual fund administration, and portfolio management. The Bahamas offers foreign companies seeking a tax haven the convenience of easily setting up a business entity. One example of business entities for foreign individuals and businesses is the international business company IBC.
Bahamian IBCs do not have to pay corporate tax unless the revenue is derived locally. IBCs are required to list one director, and a copy of the register of directors and officers must be open to the public.
Why Is the Bahamas Considered a Tax Haven?
Bahamian law allows foreign investors to establish businesses as sole proprietors. Investors need to obtain a business license and register their businesses. Investors must get approval from the Bahamas Investment Authority for business ventures, as some business areas are reserved for Bahamian citizens.
Foreign investors can buy property in the Bahamas without restrictions.
The stamp tax is between 2. Commonwealth of the Bahamas, Department of Inland Revenue. The Government of the Bahamas, Ministry of Finance. Accessed Jan. The World Bank. The Government of the Bahamas. Statute Law of the Bahamas.The economy of the Bahamas is dependent upon tourism and offshore banking.
Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences had led to solid GDP growth for many years, but the slowdown in the US economy and the attacks of September 11, held back growth in these sectors in — However, since Decemberwhen the government enacted new regulations on the financial sector, many international businesses have left the Bahamas.
In addition to tourism and banking, the government supports the development of a "2nd-pillar", e-commerce. The Bahamian economy is almost entirely dependent on tourism and financial services to generate foreign exchange earnings. The European Union lists the Bahamas as one of several Caribbean "uncooperative jurisdictions" because it fails to meet tax fairness and transparency benchmarks. Inover 3 million tourists visited the Bahamas, most of whom are from the United States and Canada.
A major contribution to the recent growth in the overall Bahamian economy is Kerzner International's Atlantis Resort and Casino, which took over the former Paradise Island Resort and has provided a much needed boost to the economy.
The Bahamian Government also has adopted a proactive approach to courting foreign investors and has conducted major investment missions to the Far EastEuropeLatin Americaand Canada. The primary purpose of the trips was to restore the reputation of The Bahamas in these markets.
As of Decemberbanks and trust companies have been licensed in the Bahamas. The Act simplified and reduced the cost of incorporating offshore companies in the Bahamas. Within 9 years, more thanIBC -type companies had been established. In Februarythe government also legalized the establishment of Asset Protection Trusts in the Bahamas. In Decemberpartly as a response to appearing the plenary FATF Blacklistthe government enacted a legislative package to better regulate the financial sector, including creation of a Financial Intelligence Unit and enforcement of " know-your-customer " rules.
Other initiatives include the enactment of the Foundations Act in and the planned introduction of legislation to regulate Private Trust Companies. The Bahamas exports lobster and some fish but does not raise these items commercially. There is no large scale agriculture, and most agricultural products are consumed domestically.
The government aims to expand food production to reduce imports and generate foreign exchange. It actively seeks foreign investment aimed at increasing agricultural exports, particularly specialty food items. The government officially lists beef and pork production and processing, fruits and nuts, dairy production, winter vegetables, and mariculture shrimp farming as the areas in which it wishes to encourage foreign investment.
The Bahamian Government maintains the value of the Bahamian dollar on a par with the U. The Bahamas is a beneficiary of the U. Other industries include sun-dried sea salt in Great Inagua, a wet dock facility in Freeport for repair of cruise ships, and mining of aragonite—a type of limestone with several industrial uses—from the sea floor at Ocean Cay. Other smaller but more nimble players in the banking industry include Fidelity Bank Bahamas Ltd. FBB offers a wide range of innovative banking products including loan products with built-in savings plans.
It provides investment products and services and attracts the majority of the corporate business deals in the Bahamas, most recently acting as financial advisor and placement agent for the largest initial public offering IPO ever in the Bahamas with the IPO of Commonwealth Brewery, a Heineken subsidiary.
The Hawksbill Creek Agreement established a duty-free zone in Freeport, The Bahamas' second-largest city, with a nearby industrial park to encourage foreign industrial investment. The Bahamian Parliament approved legislation in that extended most Freeport tax and duty exemptions through The Bahamas has no income tax, corporate tax, capital gains tax, or wealth tax.
Payroll taxes fund social insurance benefits and amount to 3. It then increased from 7. The following table shows the main economic indicators in — Total government spending, including consumption and transfer payments, is relatively low.
In the most recent year, [ when? These three island territories form the Virgin Islands. From Wikipedia, the free encyclopedia.I forgot my password. No account yet? Sign up. If you do not receive an email within 15 minutes, please check your spam folder or contact us for help.
Already have an account? I want to login. Taxation Researcher May 22, The Bahamas lacks any form of taxation on income, sales, estates or inheritances. The only direct tax is a real property tax. Business licenses are required when leasing property in the Bahamas. Stamp duties are due when leasing real properties in the Bahamas. The duty is levied on the annual rent and the rates vary depending on the duration of the lease. Real property taxes are imposed on the assessed market value of the property.
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Click here to see a worked example. Source: Global Property Guide research.A tax haven is simply a country that offers individuals or businesses little or no tax liability.
Many of the Caribbean tax havens are what is sometimes known as pure tax havens, in that they impose no taxes at all.
A number of Caribbean nations were motivated to become tax havens so they could reduce dependence on foreign countries and maintain their own economies. The Cayman Islands is one of the five largest offshore financial centers worldwide, providing services such as offshore banking, offshore trusts, and the incorporation of offshore companies.
The Cayman Islands has no income taxno corporate tax, no estate or inheritance tax, and no gift tax or capital gains tax, making it a pure tax haven. The Caymans have very strict banking laws designed to protect banking privacy. There are no exchange controls in the Caymans restricting money transfers in any way.
Offshore businesses are not required to pay stamp duty on asset transfers. The Republic of Panama is considered a very secure pure tax haven.
One noteworthy characteristic of Panama offshore jurisdiction law is that offshore companies are allowed to conduct business operations within and outside of the offshore jurisdiction.
Offshore Panamanian companies and their owners are not subject to income taxes, corporate taxes, or local taxes, and people of any nationality may incorporate within Panama. Panama strictly protects the privacy of offshore trusts and foundations by law. As a provider of offshore banking services, Panama has strict banking secrecy laws designed to protect the privacy of account holders. Panama has no tax treaties with any other country and no exchange control laws.
The Bahamas became widely popular as a tax haven in the s after passing legislation that enabled the incorporation of offshore corporations and IBCs.
It remains one of the preferred tax havens for residents of the United States and European countries.How The Wealthy Hide Billions Using Tax Havens
The Bahamas provides offshore banking, registration of offshore companies, registration of ships, and offshore trust management. The Bahamas was the first Caribbean nation to adopt strict banking secrecy laws. Information on offshore bank account holders can only be disclosed by the specific order of the Bahamian Supreme Court. The Bahamas is a pure tax haven, with no tax liability at all for offshore companies or individual offshore bank account holders on income earned outside of the jurisdiction.
The country does not impose any taxes on offshore accounts, and it has no tax treaties with other nations, thus protecting the financial privacy of bank account holders.
Taxes & Bahamas Homes: What You Should Know
An advantage to offshore banking customers and offshore companies incorporated in the BVI is that there are no exchange controls. This makes it much easier to transfer funds from one place to another for trading and investment purposes while protecting financial privacy.
Often confused with the Dominican Republic, the Commonwealth of Dominica has initiated legislation that facilitates the creation of offshore corporations, trusts, and foundations, providing tax-friendly and privacy-protected offshore banking services. Dominica is a pure tax haven that imposes no income taxes, no corporate taxes, and no capital gains tax on income earned abroad.
There are also no withholding taxes and no estate taxes, including inheritance taxes or gift taxes. Offshore companies and trusts do not have to pay any stamp duty on transfers of assets. People of any nationality may form offshore corporations in Dominica. The nation has privacy laws that shield the identities of owners and directors of offshore companies incorporated in Dominica.
There is no taxation of interest earned on offshore bank accounts, and information on offshore account holders is not shared with tax authorities of any other country. Dominica's asset protection and financial privacy laws are very strict, making Dominica a secure offshore tax haven. Nevis, together with St. Kitts, forms the St.
Kitts and Nevis Federation. Nevis offers tax-friendly formation of offshore limited liability companies LLCstrusts, and foundations, along with excellent offshore banking and insurance services. Nevis provides financial privacy by not making public any information regarding owners and directors of offshore companies.Making the Bahamas your home?
Bahamas taxes are a hot topic when people talk about buying a home in the Bahamas. There are many questions people have when they are considering buying a second home in a different country. Real property tax ranges from. Click here for a complete breakdown of these taxes. Valued added tax VAT was introduced in January Every person or business making local purchases or importing goods or services into The Bahamas will be required to pay 7.
All persons engaging in gainful employment in The Bahamas — whether employed on a temporary, probationary, part-time or permanent basis — are required to register with National Insurance. There is no reclamation of any taxes paid, with the exception of businesses that are registered for rebates on VAT. Declaration of earnings does not have to be done in the Bahamas and there are no tax returns to be completed.
For more information on the Bahamas lifestyle click here to visit our FAQ page. Drop us a note here: Palm Cay is a community of ocean-lovers in the Bahamas with over exquisite marina homes 15 minutes from Nassau, 28 fun-filled boating miles from the Out-islands. Previous Next. Here is everything you need to know about Bahamas taxes: What property taxes do you have in The Bahamas?
Will I be taxed when entering and exiting the Bahamas? Yes, a departure tax is paid by each visitor and the cost is included in the return airfare. What is national insurance? Can you claim any of the taxes?
If a non- residents earns money in the Bahamas will it be taxed by their home country? Declaration of earnings does not have to be done in the Bahamas and there are no tax returns to be completed The Bahamas lifestyle has a special beauty to it and is the perfect place to own a home.