Bahamas
Caribbean • UTC-4 • America/NassauBahamas Tax System
The Bahamas operates a tax system with no personal or corporate income taxes. The primary tax is a Value Added Tax (VAT) applied to goods and services.
Income Tax
0%
No personal income tax
Corporate Tax
0%
No corporate income tax
VAT / GST
12%
Standard VAT rate
Nomad Visa
Available
Annual Residency Permit
Tax System Overview
The Bahamas has a tax system characterized by the absence of personal and corporate income taxes. The primary tax is VAT, applied at a standard rate of 12%.
System Type
No personal or corporate income tax
Resident Taxation
Residents are not taxed on personal income.
Non-Resident Taxation
Non-residents are not taxed on personal income.
Tax Year
January 1 – December 31
Income Tax Bands
No personal income tax. The Bahamas does not levy tax on personal income.
Tax Treaty
Double Taxation Agreements are not applicable as the Bahamas does not levy income tax.
United Kingdom
Treaty ActiveThe Bahamas does not have a double taxation treaty with the UK, as it does not levy income tax.
Key Benefits
No double taxation on income- No withholding taxes
Totalization Agreement
Totalization agreements are not applicable as the Bahamas does not levy social security taxes.
United States of America
Agreement ActiveThe Bahamas does not have a social security totalization agreement with the USA.
Coverage Areas
Facts
- No social security taxes in the Bahamas
- No agreements with other countries
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
No corporate income tax
VAT Registration
Mandatory for businesses with turnover exceeding $100,000 annually.
Freelancer Rules
Freelancers are not subject to income tax but must comply with VAT if applicable.
Crypto Policy
Cryptocurrency transactions are not specifically regulated for tax purposes.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No personal income tax for residents
- No capital gains tax
Filing Roadmap
Determine VAT Obligations
Assess if your business meets the VAT registration threshold of $100,000 annual turnover.
Register for VAT
If applicable, register for VAT with the Bahamas Department of Inland Revenue.
Maintain Financial Records
Keep accurate records of all business transactions for VAT reporting purposes.
File VAT Returns
Submit VAT returns as required by the Department of Inland Revenue.