How does the Bahamas tax system work?

The Bahamas has a relatively low tax rate. In summary:

• Income, dividends, capital gains, wealth and inheritance are all tax-free.
• There is a 12% VAT on nearly all products and services, with the exception of food and some medical services.
• On real estate transactions over $100,000, there is a 10% stamp duty.
• On owner-occupied real estate, an annual property tax of around 1.5 percent is levied.
• Many items have import taxes ranging from 25% to 40%.

The Bahamas may appear to be a tax-free haven on the surface, but to actually benefit from this jurisdiction’s tax system, the help of a professional like One IBC^® is strongly advised.