The Government of The Bahamas
Investment Incentives

The Government of The Bahamas, Bahamas Investment Authority, offers investors in The Bahamas multitude investment incentives and are open to qualifying individuals or firms.

The Bahamas Investment Incentives:

  • Provide relief from customs duties on approved raw materials, equipment and building supplies
  • Allow exemptions from real property taxes for up to 20 years

Here, we highlight the incentives.
 

Commercial Enterprises Bill 2017 (CEB)

The Commercial Enterprises Bill 2017 (CEB) was recently introduced by The Government of The Bahamas to help improve the ease of doing business in The Bahamas to generate investment, increase job opportunities and stimulate growth by way of relaxing and streamlining the work permit application process for foreign workers from specified industries. As a result of the Bill, the Bahamas Investment Board has a unit dedicated to assisting foreign, Bahamian and joint-venture businesses and individuals seeking to open a specified commercial enterprise. The specified commercial enterprises or industries included in the Bill are: captive insurance, reinsurance, mutual fund administration, arbitration, wealth management, international trade, international arbitrage, computer programming, software design and writing, bioinformatics and analytics, maritime trade, nanotechnology, biomedical industries, boutique health facilities, data storage or warehousing, aviation approved maintenance operations, aviation registration, call centers, and manufacturing or assembly of manufactures.

Review the Complete Commercial Enterprises Bill 2017 (CEB)
 

City of Nassau Revitalization (Amendment) Act

The City of Nassau Revitalization Act came into operation on July 1, 2008 to encourage the revitalization of the City of Nassau by granting certain exemptions and fiscal incentives to persons engaging in such investment. According to an overview of investment incentives by the Bahamas Investment Authority, the Act provides incentives and duty concessions in connection with restoration, repair and upgrade of buildings, commercial and residential, in the City of Nassau. Since 2008, the Act has undergone amendments and has been extended until June 2018.

Review the Complete City of Nassau Revitalization Act
 

Hotels Encouragement Act (Chapter 289)

The Hotels Encouragement Act commenced on July 22, 1954 as an Act to encourage the construction of hotels in The Bahamas by providing for the refund of customs duties and emergency taxes and certain other concessions, and for the exemption of such hotels from certain taxation, and to relieve existing hotels from certain taxation. The benefits available to investors include:

  • Customs duties exemptions on imports for construction
  • Right to import construction plant
  • Real property tax exemptions for 10 years and reduced rates for up to 30 years

Review the Complete Hotels Encouragement Act (Chapter 289)
Applications
 

Industries Encouragement Act (Chapter 326)

Particularly beneficial to manufacturers, the Industries Encouragement Act came into effect on December 18, 1970 as an Act to encourage the establishment and development of industries and for matters connected therewith. The benefits available to investors include:

  • Customs duties exemptions on imports for machinery and raw materials, and business license fees
  • Exemption on export tax for 15 years
  • Real property tax exemption for 15 years
  • Relief from other taxes

Review the Complete Industries Encouragement Act (Chapter 326)
Applications
 

Family Islands Development Encouragement Act (Chapter 328A)

The Family Islands Development Encouragement Act came into operation on July 1, 2008 as an Act to grant certain import concessions in respect of certain Family Islands for encouraging development. It has been extended until June 2018. The benefits available to investors include:

  • Customs duties exemptions on imports for construction only
  • Customs duties exemptions on imports of land clearing equipment

Review the Complete Family Islands Development Encouragement Act (Chapter 328A)
 

International Persons Landholding Act (Chapter 140)

The International Persons Landholding Act came into effect on January 1, 1994 as an Act to repeal the Immovable Property (Acquisition by Foreign Persons) Act, 3 of 1981, and to facilitate the holding of land by non-Bahamians and by companies under their control. The benefits available to investors include:

  • No permit required for certain purchases by non-Bahamians of property
  • Issue of an annual residence card to a non-Bahamian

Review the Complete International Persons Landholding Act (Chapter 140) and Application
 

Bahamas Vacation Plan and Time-sharing Act (Chapter 141)

The Bahamas Vacation Plan and Time-sharing Act came into operation on January 12, 2000 as an Act to provide for the creation, regulation and management of timesharing and vacation projects; for the protection of purchasers of timesharing and vacation plans; and for connected purposes. The benefits available to investors include:

  • Customs duties exemptions on imports for construction

Review the Complete Bahamas Vacation Plan and Time-sharing Act
 

Tariff Act (Chapter 297)

The Tariff Act came into effect on July 1, 2008 as an Act to make new provision for the imposition and collection of customs duties, and to give effect to the harmonized system of tariff and for other matters connect therewith. The benefits available to investors include:

  • Customs duties exemptions on imports of raw materials, supplies and equipment as outlined in relevant schedules. According to Business Investment Authority (BIA), the Tariff Act, 2013 provides exemptions to approved manufacturers for the import of capital equipment and raw material for garment manufacturing, food processing, the production of handicraft and souvenir items, and cottage industries.

Review the Complete Tariff Act, 2013
 

Export Manufacturing Industries Encouragement Act (Chapter 327)

The Export Manufacturing Industries Encouragement Act commenced on January 15, 1990 as an Act to encourage the establishment and development of export manufacturing industries and for matters connected therewith. The benefits available to investors include:

  • Customs duties exemptions on imports of machinery or raw materials
  • Real property tax exemption on factory premises for 25 years

Review the Complete Export Manufacturing Industries Encouragement Act
 

Agricultural Manufactories Act (Chapter 243)

The Agricultural Manufactories Act commenced on July 7, 1913 as an Act relating to the encouragement of agricultural manufactories. The benefits available to investors include:

  • Interest-free loans for the purchase of supplies
  • Customs duties exemptions on machinery, tools, fixtures and supplies used in processing agricultural, marine, floricultural and horticultural products and materials for building and equipping a factory
  • Exemption from export taxes

Review the Complete Agricultural Manufactories Act
 

The Hawksbill Creek Agreement Act

The Hawksbill Creek Agreement Act was established in 1955, entered into by the Bahamian Government and a newly formed Grand Bahama Port Authority (GBPA). Envisioning a future as a leading shipping hub and center for international business, this future-forward group saw to it that a deep-water harbor and an economic zone were established on Grand Bahama Island. Their vision became reality, with Freeport, Grand Bahama Island at its center. Today, Freeport is the beating heart of this 230-square-mile economic zone fueling massive trade, tourism and much more. Long-term tax concessions, world-class infrastructure, reliable telecommunications, and accessibility make it an exceptional location to live and work.

Read the Complete Hawksbill Creek Agreement Act
 

The Bahamas Free Trade Zones Act (Chapter 325)

The Bahamas Free Trade Zones Act came into effect on December 31, 1984 as an Act providing for the operation of free industrial and commercial zones within The Bahamas.

Review the Complete Free Trade Zones Act
 

Spirits and Beer Manufacture Act (Chapter 373)

The Spirits and Beer Manufactures Act commenced on July 31, 1963 as an Act to prohibit the distilling and manufacture of spirits and the brewing and manufacture of beer, except under license and to provide for the free importation of materials and goods in connection with such manufacture in certain circumstances. The benefits available to investors include:

  • Duty-free import of raw material and equipment for spirits and beer manufactures

Review the Complete Spirits and Beer Manufacture Act

For support navigating the series of investment incentives and applications provided by The Government of The Bahamas, Bahamas Investment Authority, contact IFF today.

*Bahamian or non-Bahamian investors seeking to invest in and/or establish a business in The Bahamas must submit a proposal to the Authority for consideration by the National Economic Council (NEC), if the proposal involves any of the following:

  • Non-Bahamian participants
  • The use of foreign capital
  • Application for Government concessions, particularly under the Hotels Encouragement Act, the Tariff Act and the Industries Encouragement Act
  • Long lease and/or purchase of immovable property by foreign concerns
  • Transfer of shares to non-Bahamians

*Source: Summary of Benefits Under The Hotels Encouragement Act

 

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Review the complete list of investment incentives by downloading the Incentives Summary today!

Download the Incentives Summary




Investment opportunities in The Bahamas span many sectors. Learn more about investment opportunities in The Bahamas, and the application and approval processes, by downloading The Commonwealth of The Bahamas National Investment Policy. All investors should be guided by the National Investment Policy.

Download the National Investment Policy




IFF can guide you throughout the entire investment process.
Contact us today!