Starting a business in
🇧🇸Bahamas
Checked November 4, 2026 · How we score
Corporate tax
0%
Top income tax
0%
Setup from
$1,500
all-in, first year
Time to form
5 days
can be done remotely
Taxes in The Bahamas
| Corporate income tax | 0% No corporate income tax. Businesses pay an annual business licence fee on turnover (about 0.25%–1.5% on a sliding scale) rather than a profit tax. A 15% Domestic Minimum Top-up Tax applies from 2025 only to in-scope multinational groups with revenue of EUR 750 million or more. |
|---|---|
| Personal income tax (top) | 0% No personal income tax. Residents pay VAT, import duties, real property tax and stamp duty on property transfers (2.5%–10%). |
| Tax system | No personal income tax |
| Capital gains tax | 0% |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 10% |
| Social security | VAT 10% since July 2022 (was 12%). National Insurance (NIB) contributions apply to employees' wages at roughly 3.9% employee and 5.9% employer rates, subject to ceilings. |
Forming a company in The Bahamas
| Usual entity | International Business Company (IBC) or Bahamas limited company |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $1,000–$2,500 |
| Time to incorporate | 5 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
BEATS allows remote workers to stay in the Bahamas for up to one year (renewable for a second year) with a modest fee and no stated income threshold. Economic permanent residency is available to property buyers (from about US$750,000 for permanent residency; lower values qualify for annual residence permits), and the process involves an interview and police checks. Verify current thresholds with the Department of Immigration.
| Digital nomad visa | BEATS (Bahamas Extended Access Travel Stay) |
|---|---|
| Golden visa | Yes, from $750k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Economic Permanent Residency
Foreign buyers of Bahamian real estate valued around US$750,000 or more can apply for permanent residency, with a lower-priced annual residence permit as an alternative; neither grants a work right.
BEATS remote worker permit
A one-year stay (renewable once) for remote workers and students, which does not create tax obligations in the Bahamas.
Digital Assets and Registered Exchanges (DARE) Act
A licensing framework for crypto businesses, which has attracted exchanges and fintechs to the Bahamas, including SCB regulation.
Pros and cons
Why founders pick The Bahamas
- No corporate, personal income, capital gains or inheritance tax
- English common law, USD-pegged currency and proximity to the US
- Crypto regulatory framework (DARE Act)
- Remote worker permit and residency by property
Watch out for
- High cost of living and real estate; 10% VAT
- Economic substance and beneficial ownership rules apply to some entities
- Banks are cautious with newly formed foreign-owned companies
- Reputation as an offshore centre; has faced past listings
Best for: Offshore holding, trading and crypto companies · High-net-worth individuals seeking zero income tax and a nearby-to-US base · Founders who want to live in a zero-income-tax jurisdiction with English common law
The Bahamas: common questions
Does the Bahamas have income tax?
No. The Bahamas levies no personal income tax, corporate tax, capital gains tax or inheritance tax. Government revenue comes from a 10% VAT, customs duties, business licence fees, real property tax and stamp duty.
Is the Bahamas on the EU tax blacklist?
As of the EU list update adopted on 9 October 2026, the Bahamas appears on neither Annex I (the blacklist) nor Annex II (the grey list). The Bahamas has been listed in the past, so banks still conduct enhanced due diligence. Check the Council of the EU's page for the latest status.
How much does it cost to set up a Bahamas company?
An IBC typically costs about $1,500–$3,500 to set up including agent and government fees, then $1,000–$2,500 annually. A registered agent and office in the Bahamas are required, but directors and shareholders can be foreign and non-resident.
Can I get residency in the Bahamas?
Yes. The BEATS permit allows remote workers to stay for up to a year, renewable once. Property buyers can seek economic permanent residency from about US$750,000 and lower-value annual permits. Neither gives the right to work for a Bahamian employer without a work permit.
Is a Bahamas company good for e-commerce or SaaS?
It works for holding, trading or crypto businesses that need zero tax and a quick setup. However, Stripe and some banks restrict Bahamas entities, and customers or platforms may view it as an offshore structure. Many online businesses prefer US LLCs or EU entities for payment processing.
Sources
- Bahamas Government: Ministry of Finance
- Bahamas Investment Authority
- Council of the EU: list of non-cooperative jurisdictions
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.