The Bahamas

Demographics

Starting 60 miles off the coast of South Florida and stretching as far south as Cuba, Haiti and the Dominican Republic, The Bahamas is a coral archipelago of 700 islands, 29 of which are inhabited, and over 2,000 rocks and cays.

With a population of over 300,000 people, most of whom live on the major islands (New Providence, Grand Bahama, Eleuthera, Abaco, Exuma, Long Island, Inagua, Cat Island, Bimini and Andros), and with an adult literacy rate of 95%, The Bahamas, an English Speaking country, has a capable and adable work force.

The term, "Isles of June" has often aptly been used to describe the Bahamas due to its mild climate. Having a tropical maritime wet and dry climate, with slight incursions of mildly polar air, generally the Bahamas does not experience extremes of temperatures. The humidity is fairly high, especially in the summer months, but there is usually a pleasant breeze which lessens the humid effect, rain showers can occur at any time of the year, but the rainy months are May to October. Rainfall is mainly in the form of heavy thundershowers, which clear quickly.

Infrastructure

THE Bahamas has comprehensive and modern infrastructure, particularly on the two major islands, New Providence and Grand Bahama, where most of the population live. Electricity and water are in abundant supply. Telecommunications services and facilities in The Bahamas are state-of-the-art, with direct international links provided through a 100% digital switching system.

Government

The currency of the Bahamas is the Bahamian Dollar. Although all other currencies are foreign, the U.S. Dollar is readily accepted throughout The Bahama islands and is on par with the Bahamian Dollar. The Exchange Control is administered by The Central Bank of The Bahamas.

Economy

The Bahamas is a stable developing nation, according to a United States of Commerce report by the U.S. Embassy in Nassau. The economy is based mostly on tourism and offshore banking and other financial services. Retail and wholesale distributive trade, manufacture, agriculture and fisheries are the other major sectors of the economy. The Gross Domestic Product (GDP) of The Bahamas exceeds $3 billion, 60% of which comes from tourism related activities.

International Home Owners

Overseas investors may acquire up to five acres of residential property in The Bahamas without prior government approval. However, such acquisitions are required to be registered in accordance with the International Persons Landholding Act. Foreign homeowners are eligible for a 'Home Owners Residence Card', renewable annually for a small fee. This card will facilitate entry into The Bahamas and entitle the owner, his/her spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card. Application may be made to the Director of Immigration.

Annual or Permanent Residence

Accelerated consideration of applications for annual or permanent residence will be given to major international investors; and owners or residences valued at $500,000 or more.

Work Permits

If setting up a business in The Bahamas, necessary work permits for key personnel will be granted. Businesses requiring permits for persons other than key personnel are encouraged to discuss these requests with The Bahamas Investment Authority in advance.

Local Partners in Joint Ventures

International investors are encouraged to establish joint ventures with Bahamian partners. The choice of such Bahamian partners is at the absolute discretion of the investor.

Government Stamp Tax on Property Conveyances

A graduated tax is payable on the conveyance of all real property in The Bahamas based on the value as follows:

This tax is shared equally (50/50) by the buyer and the seller.

Lawyer Fees

Both the buyer and the seller are responsible for 2.5% legal fees on the sale of property.

Rates of Taxes

Effective from January 1, 1994, the rates of tax on real property are as follows: