Expat Tax Residency in Bahamas

The Bahamas draws thousands of expats each year -- retirees, entrepreneurs, and high-net-worth individuals -- precisely because the country imposes no personal income tax. Understanding what Bahamian tax residency actually means, how to obtain it, and what obligations remain from your home country is essential before making the move.

Does living in The Bahamas create an income-tax liability?

No. The Bahamas has no personal income tax, no capital gains tax, no inheritance or estate tax, and no gift tax. [1] This is confirmed by PwC's Worldwide Tax Summaries (updated 2026): "There is currently no personal income tax (PIT) in The Bahamas." Government revenue comes instead from Value Added Tax (10% standard rate, 5% on basic foods and medical products), customs duties, real property tax, and business licence fees. [1][2]

Being a Bahamian tax resident does not create any new direct tax on your income, wherever earned. There is no Bahamian filing obligation for personal income. The phrase "tax residency" in a Bahamian context is relevant not because The Bahamas taxes you, but because your home country -- and international reporting systems -- need to know where you are a resident for tax purposes.

How do you become a resident of The Bahamas?

The Bahamas Department of Immigration offers several pathways. The three most relevant for expats are the Annual Residence Permit, Economic Permanent Residency, and -- for employed remote workers -- a now-suspended digital nomad permit.

Annual Residence Permit (Permit to Reside). The annual permit is issued for non-work purposes to individuals who wish to live in The Bahamas without employment authorization. The permit is renewed each year. The government fee is BSD 3,000 per year for the primary applicant and BSD 300 per year for each dependent. [3] Applicants must submit a medical certificate, police certificate, character references, proof of financial means, and a completed Form 1. Processing takes 8 to 12 weeks at the Department of Immigration, Nassau. [3]

Economic Permanent Residency (EPR). Economic Permanent Residency is the long-term solution for investors. As of 1 January 2025, the minimum qualifying investment is BSD 1,000,000 (approximately USD 1,000,000), up from the previous BSD 750,000 threshold. [4] The investment must be held for a minimum of 10 years. Qualifying assets are: (1) direct purchase of residential real estate in The Bahamas, or (2) Zero-Coupon Bonds issued by the Central Bank of The Bahamas. [4] The EPR certificate is issued for life unless revoked and confers the right to reside and to work. [4]

Investors committing BSD 1,500,000 or more in qualifying real estate access an accelerated processing track; standard applications at the BSD 1,000,000 threshold take 3 to 6 months. [4][5] Government fees for the EPR certificate are BSD 20,000 (without business rights) or BSD 25,000 (with business rights), plus a non-refundable BSD 200 application processing fee. [3]

BEATS -- now suspended. The Bahamas Extended Access Travel Stay (BEATS) was a digital-nomad permit allowing remote workers to live in The Bahamas for up to 12 months, renewable twice for a maximum of 3 years. The program cost USD 1,025 for an individual (USD 25 application + USD 1,000 permit). However, the Bahamas Ministry of Immigration suspended the BEATS program in 2024 and it remains suspended as of mid-2026; no reinstatement date has been announced. [6] Remote workers seeking to live in The Bahamas currently must use the Annual Residence Permit pathway or another qualifying category.

What is the Bahamas tax-residency certificate and who needs one?

In response to OECD pressure that residency-by-investment programs were being used to circumvent the Common Reporting Standard (CRS), the Bahamian government introduced a formal tax-residency certificate for permanent residents. [7] The certificate carries a unique Taxpayer Identification Number (TIN) and is presented to foreign banks and tax authorities as proof that The Bahamas is the holder's primary domicile -- which means their financial accounts fall under Bahamian (not their former home country's) CRS reporting obligations. [7]

The 90-day physical presence guideline. To qualify for the certificate, a permanent resident must spend at least 90 days in The Bahamas during the calendar year and must not spend more than 183 days in any single other country in the same year. [7] This is not the same as a 183-day "tax year" test common in other jurisdictions; The Bahamas uses a lower 90-day floor combined with a 183-day cap-elsewhere rule. Permanent residents who fail to maintain 90 days of presence for more than three consecutive years also risk revocation of their EPR status. [5]

The Bahamas participates in the OECD CRS automatic exchange framework and has signed a Model 1 Intergovernmental Agreement (IGA) with the United States under FATCA. [8] There is no US-Bahamas income tax treaty because The Bahamas has no income tax on which to base a double-taxation agreement. [8]

What taxes do exist in The Bahamas?

While income is untaxed, residents and property owners face several other levies.

Does Bahamian residency eliminate your home-country tax obligation?

For most nationalities, establishing Bahamian tax residency and severing ties to your home country can significantly reduce global tax exposure -- but there is a critical exception.

US citizens and green card holders are taxed on worldwide income regardless of where they live. The Internal Revenue Service taxes US persons on all income from all sources, whether earned in The Bahamas or anywhere else. [8] A US citizen who moves to Nassau, holds a Bahamian EPR certificate, and earns passive investment income abroad still files a US Form 1040 every year. There is no US-Bahamas income tax treaty to provide relief, and no totalization agreement covering social security. US persons with Bahamian financial accounts exceeding USD 10,000 in aggregate must also file FinCEN Form 114 (FBAR) annually. [8]

For non-US nationals -- such as UK, Canadian, EU, or Australian citizens -- Bahamian tax residency can be highly effective, provided they formally cease tax residency in their home country under that country's rules (typically by giving up a tax domicile or meeting a days-away test). Each home country has different exit and departure tax rules. Consult a qualified tax professional before relocating.

For more context on what The Bahamas does and does not tax, see the Bahamas country overview and the Bahamas capital gains tax page.

Important: This page summarizes publicly available information for general educational purposes only. Tax and immigration rules change. Before making any decisions about residency, investment, or cross-border tax obligations, consult a qualified tax professional familiar with both Bahamian and your home-country law.