Capital gains tax in Bahamas

Does The Bahamas have a capital gains tax?

No. The Bahamas has no capital gains tax of any kind. Gains from the sale of shares, real estate, businesses, crypto assets, or any other capital asset are not subject to Bahamian tax -- for residents or non-residents alike. The country also imposes no personal income tax, no corporate income tax on domestic profits, no inheritance or estate tax, and no wealth tax. The Department of Inland Revenue (DIR) confirms that individuals and companies face no direct tax on income or capital gains at the national level. [^1]

This puts The Bahamas in the same zero-direct-tax bracket as the Cayman Islands, British Virgin Islands, and Bermuda. However, the absence of domestic CGT does not automatically shelter foreign nationals from their home-country tax obligations on Bahamian-sourced gains -- a point covered below under CRS reporting.

What taxes does apply in The Bahamas?

Although no direct taxes apply to income or capital gains, The Bahamas raises government revenue through indirect and transaction-based taxes.

Value Added Tax (VAT) was introduced in January 2015. The standard rate is 10 percent on nearly all goods and services sold or consumed domestically. A reduced rate of 5 percent applies to basic foods, select medical supplies (expanded September 2025 to include baby and adult diapers, feminine hygiene products, and additional medications), and certain hygiene products. Businesses with taxable revenue exceeding BSD 100,000 in any 12-month period must register with the DIR. The VAT is administered through the DIR's Online Tax Administration portal. [^1][^2]

Real property tax is an annual tax levied on all property in The Bahamas. Rates are progressive and differ by ownership classification. For owner-occupied residential property, the first BSD 300,000 of assessed value is fully exempt; the band from BSD 300,001 to BSD 500,000 is taxed at 0.625 percent per year; value above BSD 500,000 is taxed at 1 percent per year, subject to a BSD 120,000 annual cap. Commercial property rates start at 0.75 percent on the first BSD 500,000, rising to 1 percent on the BSD 500,001 to BSD 2,000,000 band, and 1.5 percent above BSD 2,000,000. Non-Bahamian-owned property is assessed at 1 percent on improvements plus a separate rate on the unimproved land value. [^3]

Conveyance VAT (formerly Stamp Duty) applies to real-estate transfers. Since 1 July 2023 the conveyance charge has been structured as a flat 10 percent VAT on the transaction value, replacing the prior progressive Stamp Duty schedule. By custom the charge is split 50/50 between buyer and seller, though contract terms may vary. Parties must now obtain a VAT invoice from DIR before executing a conveyance -- a procedural change introduced by the July 2025 legislative amendments. [^2][^4]

Business Licence Fee applies to every person or entity conducting business in The Bahamas, under the Business Licence Act 2010 (as amended). The fee is calculated on the preceding year's gross turnover: BSD 100 flat for turnover up to BSD 50,000; 0.50 percent for turnover from BSD 50,001 to BSD 500,000; 0.75 percent from BSD 500,001 to BSD 5,000,000; and 1.25 percent for turnover above BSD 5,000,000. Licences expire 31 December annually, with a grace period to 31 January. Late payment incurs a 10 percent surcharge and 5 percent annual interest after 30 days. [^5]

Customs duty applies to imported goods, calculated on cost-insurance-freight (CIF) value using tariff headings from the Customs Management Act. Rates range from 0 percent to 220 percent depending on product category, with most consumer goods falling in the 5 to 35 percent band. A 1 percent customs processing fee applies (minimum BSD 10, maximum BSD 750). Revised tariff schedules took effect July 2025 targeting reductions on energy-efficient goods and building materials. [^6]

National Insurance Contributions (NIC) are paid by employers (6.65 percent) and employees (4.65 percent) on weekly earnings up to BSD 810. Self-employed individuals contribute 10.3 percent on the same ceiling. NICs fund the National Insurance Board's pension and social-security programmes and are not income taxes. [^1]

Summary table: tax types in The Bahamas

What is the 15% Domestic Minimum Top-Up Tax for multinational groups?

The Bahamas enacted the Domestic Minimum Top-Up Tax Act (DMTT Act) on 29 November 2024, implementing the OECD/G20 Pillar Two global minimum tax framework. The DMTT is deemed retroactively effective from 1 January 2024 for fiscal years starting after 31 December 2023.

The DMTT applies only to in-scope multinational enterprise (MNE) groups -- those with consolidated global revenues of EUR 750 million or more in at least two of the four fiscal years preceding the year under review. Businesses that operate solely within The Bahamas are expressly excluded regardless of their local revenue. The top-up mechanism works as follows: if an in-scope MNE group's Bahamian constituent entities pay an effective tax rate below 15 percent on Bahamian profits, the DMTT collects the difference up to the 15 percent floor. Qualifying Domestic Minimum Top-Up Tax (QDMTT) safe-harbour provisions allow the top-up taxes otherwise collectible by other jurisdictions to be treated as zero when the Bahamas DMTT applies. Returns must be filed within 15 months after the last day of each fiscal year (18 months for the transition year). The Business Licence (Amendment) Act 2025, effective 1 January 2024, introduced tax credits so that DMTT liability can offset applicable Business Licence fee obligations. [^7][^8]

For operators of standard domestic or small-group businesses, the DMTT is irrelevant -- the EUR 750 million threshold is far above typical commercial activity in The Bahamas.

Do Bahamas residents need to report foreign gains elsewhere?

The Bahamas participates in the OECD Common Reporting Standard (CRS), meaning Bahamian financial institutions automatically exchange account information with the tax authorities of participating CRS partner countries. A Bahamian-resident national of a CRS-partner country who holds foreign assets through Bahamian accounts may therefore have that information reported to their home country's tax authority.

US citizens are separately subject to FATCA (Foreign Account Tax Compliance Act) and to US federal income tax on worldwide income regardless of residence -- US citizens in The Bahamas remain liable for US capital gains tax on gains wherever realised. The Bahamas has no bilateral tax treaty with the United States, but has signed Tax Information Exchange Agreements (TIEAs) with the US, UK, Canada, and other partners. [^1]

Anyone managing cross-border asset positions should consult a qualified tax professional familiar with both Bahamian and home-country rules before relying on the zero-CGT status of The Bahamas as a complete shelter.

For a broader picture of living, working, or investing in The Bahamas, see the The Bahamas country overview. Because individual circumstances vary significantly -- especially for expatriates, foreign investors, or members of large corporate groups -- the information on this page is a neutral factual summary only. Always confirm current rules and how they apply to your situation with a qualified tax professional.