Bahamas, The

Value-added tax (VAT)

VAT applies broadly to goods and services, with the standard rate for taxable supplies set at 10%.

Certain essential items, including basic foods, medical products, and hygiene products, are subject to a reduced VAT rate of 5%.

Businesses offering taxable supplies are required to register for VAT when their total taxable revenue meets or exceeds 100,000 Bahamian dollars (BSD) within any 12-month period. Nevertheless, specific circumstances may necessitate mandatory registration regardless of revenue thresholds.

Customs duties

Customs duties are levied at different rates on imported goods based on their tariff headings in the Schedules to the Customs Management Act. These duties are calculated on the cost, insurance, and freight (CIF) value of the goods at the time of importation.

Excise taxes

Excise taxes are levied at varying rates on specific manufactured products, such as tobacco, alcoholic beverages, and petroleum items. The applicable rates span from 5% to 300%.

Property taxes

In The Bahamas, land is subject to property tax based on its classification, such as foreign-owned, commercial, or owner-occupied.

Real property tax rates vary depending on the property's assessed value and classification.

Transfer taxes

There are no transfer taxes in The Bahamas.

Stamp duties

Stamp duty is levied on instruments of all types (e.g. deeds of conveyance, mortgages, debentures, trust deeds, leases, insurance policies, agreements, share transfers).

Stamp duty is imposed at varying rates depending on the registration of the legal instruments involved.

See ‘Dividend income’ in the Income determination section for a description of a stamp duty on certain dividends.

Capital gains taxes

There are no capital gains tax in The Bahamas.

Turnover taxes

Pursuant to the Business Licence Act, 2023, individuals are prohibited from conducting business activities within or from The Bahamas unless they have been granted a duly issued licence.

Turnover refers to the aggregate revenues, whether in cash or equivalent value, generated by a person from business operations conducted within or from within The Bahamas during the relevant assessment year.

Business Licence fees are assessed on turnover at the applicable statutory rate.

Environmental levies

Environmental levies are charged on imported items and are intended to go towards the recycling of the item when it is disposed of.

Payroll taxes

There are no payroll taxes in The Bahamas.

National Insurance contributions

Under the 1972 Act, both employees and self-employed individuals are mandated to register and contribute to National Insurance. Employers are required to pay contributions at a rate of 6.65%, while employees contribute 4.65%, with both calculated on a maximum remuneration of BSD 810 per week. Self-employed individuals contribute at a rate of 10.3% on maximum earnings of BSD 810 per week.