Bahamas, The

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 810 Bahamian dollars (BSD) per week. Self-employed individuals contribute at a rate of 10.3% on maximum earnings of BSD 810 per week.

Capital gains taxes

There are currently no capital gains taxes in The Bahamas.

Consumption taxes

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%.

Net wealth/worth taxes

There are no net wealth/worth taxes in The Bahamas.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in The Bahamas.

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.

Luxury and 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%.

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.

Environmental taxes

Environmental levies are imposed on imported goods, with the intention that these funds will support the recycling of such items upon their disposal.