Bahamas Residency by Investment: The Island Living Guide

Written by Rico Sands, licensed Bahamian realtor & incurable conch-salad evangelist.

Imagine rolling out of bed to the hush of turquoise water, checking the markets (or your emails) before you wander to the dock for a quick pre-work swim. No, this isn’t another airbrushed travel brochure—it’s Tuesday for many of my clients who’ve secured legal residency in The Bahamas.

Since 1993 I’ve walked buyers, renters and barefoot dreamers through the island’s property market. Lately, interest in our Residency-by-Investment (RBI) routes has spiked: remote founders escaping winter, retirees craving zero income tax, even crypto teams who’d rather debug code under palm trees. This guide distils three decades of hand-holding and a fair bit of sunscreen into one relaxed yet factual read.

Disclaimer: I’m a realtor, not your attorney or tax advisor. Always cross-check the law and get professional counsel.

Why The Bahamas, Anyway?

Besides 340 sunny days a year, we sit just 40 minutes by air from Miami while feeling worlds apart. English is the official language, banking is sophisticated, and—let’s be honest—pictures of your Zoom setup with powder-blue water sell themselves on LinkedIn.

But RBI is more than aesthetics. The government actively courts high-net-worth residents as one pillar of the national economy. By leasing or purchasing approved property above certain thresholds, you earn the right to live here indefinitely and, optionally, tack on work permissions.

We’ll break down both pathways, then dive into the lifestyle nuts and bolts clients ask about most: days in country, taxes, schooling, healthcare and whether you can keep the golden retriever (spoiler: yes, but the dog needs its own paperwork).

Quick RBI Snapshot

Numbers current to April 2024, published Gazette No. 34/2023.

1. Annual Home Rental vs. Purchase

Renting: Dip Your Toes Without a Cannonball

Some clients spot a beach cottage on Eleuthera, lease it, then realise 18 months later that Margaritaville isn’t a phase—so they upgrade to ownership. The government encourages this test-run via an Annual or 3-Year Home Owner’s Resident Card.

Key details: * Minimum annual rent: US$30,000 (lease must be registered). * Condo, single-family home or even long-term marina berth qualify. * The permit covers spouse and dependent kids under 18. * Renewable on proof of ongoing lease and clean police record.

Paperwork is light: notarised lease, police clearance, health certificate and two passport photos that don’t betray how badly you need a sun hat. Fees run about US$1,000 for the principal applicant and US$25 for each dependent.

Pros * Zero VAT on rent if term is longer than six months. * Quick approval (I’ve had cards in hand within a month). * Flexibility—move islands each lease cycle.

Cons * Not a pathway to citizenship. * Rent payments don’t build equity. * You’ll still need a separate work permit if you intend to run revenue-generating activity out of The Bahamas.

Realtor’s Tip: “Snowbirds” often rent November–April, driving prices up. Sign a 12-month lease starting in May or June and you’ll bargain at least 10 % off peak rates.

Buying: Plant Your Financial Flag

Permanent Residency requires a minimum US$500,000 property purchase. Yet the magic number everyone quotes at cocktail parties is US$750,000—because that unlocks fast-track consideration. In practice, approvals take 6–10 weeks instead of an entire hurricane season.

Purchase costs at a glance: * Government stamp duty: 10 % (often split buyer/seller 50-50 but negotiable). * Legal fees: 2.5 %–3 % of purchase price. * Realtor commission: 6 % residential / 10 % vacant land (paid by seller). * VAT on conveyance: included in stamp duty post-2022 merger.

Once you own the property, submit the Permanent Residency application: 1. Title deed + appraisal proving threshold. 2. Police certificate (no felonies). 3. Medical (tuberculosis clearance). 4. Two character references—think accountant, attorney, or parish priest who hasn’t seen you at karaoke night.

The residency card is indefinite, but you’ll need to renew the physical booklet every 10 years (US$100).

Pro move: Buy in a Designated Economic Development Zone such as Grand Bahama or the Family Islands and you might snag duty exemptions on building materials if you’re renovating.

2. Minimum Stay Days

The Bahamas imposes no statutory minimum for maintaining Permanent Residency—music to frequent flyers’ ears. Realistically, you should drop in enough to keep local bank relationships warm and show immigration officers you know which side of the road we drive on (left, by the way).

For the Annual or 3-Year cards, spending at least 90 days a year is advisable. It demonstrates good faith that you’re truly “residing,” not stockpiling offshore addresses. My clients aim for one week per quarter; customs officers know them by nickname, which makes holiday travel smoother too.

Hot Rumour vs. Reality
“I heard if you live here 15 years you get citizenship automatically.” Not quite. Continuous legal residence for 10 years may make you eligible to apply for naturalisation, but approval remains discretionary and factors like community involvement weigh heavily.

3. Work Permit Add-Ons

Residency is your beach pass; a work permit is your licence to earn conch dough. Here’s how the two tango:

• Entrepreneur route: Incorporate a Bahamian International Business Company (IBC) for about US$1,800, then apply for a work permit as executive director. Minimum capitalisation isn’t legislated, but bring at least US$250k to look credible.
• Remote work route: If all revenue is foreign-sourced and staff are abroad, you might often operate under a “remote work clarification letter” from Immigration, skipping the permit. Still, best to file and keep it on record.
• Spousal employment: Each adult spouse needs their own permit unless income is genuinely passive (dividends, royalties).

Cost? Expect US$6,000–$10,000 a year for senior management roles; half that for technical staff. Renewals are easier after the first year if you’ve hired Bahamians and dutifully paid National Insurance for any local employees.

4. Tax Advantages

Welcome to one of the world’s most straightforward fiscal regimes:

• No income tax
• No capital gains tax
• No inheritance tax
• No corporate tax on foreign-earned income of IBCs (domestic turnover >$100k may trigger Business Licence fees though).

Revenue for the government largely comes from VAT (12 %), customs duties and real estate stamp duty.

Avoiding Double-Tax Woes

If you’re American, Uncle Sam still wants his cut worldwide. The beauty is you may leverage the Foreign Earned Income Exclusion (FEIE) or tax treaty benefits from your home jurisdiction. Talk to a pro—we cover creative structuring in our Tax optimisation guide.

5. How Does The Bahamas Compare Regionally?

In practice, savvy clients pick The Bahamas for:
a) fastest flight links to North America,
b) genuine permanent status—not just a fancy visa decal,
c) real estate appreciation (average 5 % annually on waterfront homes since 2018).

6. Step-By-Step Application Timeline

1. Week 0–2: Engage realtor, compile shortlist, sign Buyer’s Agreement or rental Letter of Intent.
2. Week 3–5: Complete due diligence, property inspection, deposit 10 %.
3. Week 6: Execute conveyance or lease; submit Immigration forms.
4. Week 8–12: Biometrics & interview (often waived for leases under $100k).
5. Week 9–14: Approval letter; pay issue fees.
6. Week 12–16: Resident card delivered—cue shellfish and champagne.

7. Cost Breakdown Cheat-Sheet (2024)

• Legal/filing fees: $1,800–$3,500
• Property stamp duty: 10 % of purchase (often shared)
• Realtor commission: 6 % (seller pays)
• Annual resident card renewal (if renting): $1,000
• Permanent Resident booklet re-issue (every 10 yrs): $100
• Work permit senior exec: $8,000 yr 1, $6,000 renewal
• Health insurance: $1,200–$3,000 per adult annually

Ballpark: All-in, a $1 million condo purchase runs $1.12 m after taxes and fees—still below comparable waterfront in Miami Beach.

8. Island Life Logistics

Schooling

• Lyford Cay International School (IB) – wait-list can bite; apply early.
• Queen’s College – British curriculum.
  Tuition ranges $12k–$25k per child.

Healthcare

• Doctors Hospital West on Nassau rivals U.S. standards—ask about their new global health insurance plan.
• Emergency airlift to Florida costs $15k; keep Medevac membership (US$349/year).

Internet Speed

• Fiber (600 Mbps) now covers 90 % of New Providence; Starlink fills the gaps on the cays. Average cost US$120/month.

Everyday Costs

• Groceries run 30 % above U.S. mainland—learn to love local snapper and papaya.
• Gasoline hovers around US$6.30/gal (import duties).
• Domestic helpers earn US$300–$400/week, freeing you to paddle-board at lunch.

9. Realtor-Tested Tips

• Open a local bank early. Lend-lease fees and conveyances clear faster if your money’s already onshore.
• Get a Bahamas Travel Health Visa for your first few landings—immigration officers appreciate neat paperwork history.
• Join the Rotary Club or sponsor Junkanoo costumes. Community ties bolster future citizenship applications.
• Insure against hurricanes. Deductibles vary by island; I favour all-risk policies with named-storm riders.
• Split your shipment. Courier valuables, sea-freight the IKEA. Customs levies 35 % on furniture but only 10 % on electronics.

Closing Coconut

If island living keeps tugging your sun-hat strings, The Bahamas offers a straightforward, tax-friendly gateway—whether you’re renting a chic harbour loft or snapping up that beachfront spread you’ve doodled on napkins for years. The bureaucracy is lighter than most Caribbean neighbours, the travel links unbeatable, and, candidly, nothing beats a Flamingo-pink sunset after a day of remote work.

Ready to map out the minutiae—school picks, duty breaks, even the best Eleuthera-grown pineapples? Create your free, personalised relocation plan with BorderPilot today and let’s turn daydreams into an address.