Tax system in Bahamas
The Bahamas does not levy personal income tax, wealth tax, inheritance tax or capital gains tax on individuals, and it does not generally impose corporate income tax on ordinary domestic companies. That is the headline attraction for expats, founders and investors.
The real planning work is indirect and transaction taxes. VAT is generally 10%, VAT registration starts at BSD 100,000 of taxable turnover in a 12-month period, and a 0% VAT rate applies to unprepared food from 1 April 2026. Businesses also need to plan for business licence tax, real property tax, stamp duty, customs duty and excise taxes.
Payroll and compliance still matter. National Insurance contributions apply to employees and employers, and large multinational groups can fall into the 15% Domestic Minimum Top-Up Tax regime under Bahamas' Pillar Two rules.
Tax rates at a glance
- Income tax
- 0%Zero
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0%
- Corporate tax
- 0% (15% DMTT for in-scope MNEs)
- Dividend tax
- 0%
- VAT
- 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersInvestorsFamily officesExpatsHolding companies
Watch out for
- The Bahamas is low-tax, not tax-free. VAT, customs duty, business licence tax, real property tax, stamp duty and National Insurance can still change the cost base quickly.
- The government enacted the Domestic Minimum Top-Up Tax Act in 2024, and 2026 administration is rolling out for in-scope MNE groups. That matters even if your domestic company has no general corporate tax.
- VAT rules are moving in 2026, including the 0% rate for unprepared food from 1 April 2026. Do not rely on old tax summaries for retail or food businesses.
Frequently asked questions
Is The Bahamas a low-tax country?
Yes. The Bahamas has no personal income tax, no wealth tax, no inheritance tax and no general corporate income tax for most domestic businesses. The main exceptions are indirect taxes, business licence tax, property tax, stamp duty and the Pillar Two DMTT for in-scope multinationals.
What taxes actually matter in The Bahamas?
The main taxes and charges are VAT, business licence tax, real property tax, customs duty, excise taxes, stamp duty and National Insurance. Large multinational groups also need to check the DMTT rules.
Is The Bahamas good for expats and founders?
It can be, especially if you want no personal income tax and a simple headline tax profile. The trade-off is that you still need to model payroll, VAT, licensing, transfer taxes, residency paperwork and banking compliance.