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Prime Minister
Rt. Hon.
Perry G. Christie
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Introduction to The Bahamas
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 some 284,000 people, most of who 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 has a capable and adaptable work force.
The Bahamas, an English speaking country which gained its independence from Britain on July 10, 1973, is one of
the most politically stable countries; a parliamentary democracy has operated without interruption for 275 years.
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.
The economy of The Bahamas is driven by tourism and international banking and other financial services. Retail
and wholesale distributive trades, manufacturing, agriculture and fisheries are the other major sectors of the
economy. The Gross Domestic Product (CDP) of The Bahamas exceeds $3 billion, 60% of which comes from tourism related
activities. The per capita income of the country is $11,000. The Bahamas is an independent monetary entity. The
Bahamian dollar is on par with the U.S. dollar. There are no income and corporate taxes in The Bahamas.
Economic Policy
The Government of the Commonwealth of The Bahamas is committed to building an economic environment in which free
enterprise can flourish; where the Government assumes its proper role as regulator and facilitator of economic
development; where the ideals of transparency, fair play and equality of treatment are paramount; and a policy
that maintains a stable society in which all people are afforded the opportunity to realize their maximum potential.
In this regard, the National Investment Policy is designed to support an investment friendly climate; it guarantees
the complimentarity of Bahamian and overseas investments; fosters appropriate linkages with all sectors of the
economy, in particular, the tourism and financial services sectors; encourages the exploitation of our natural
resources in an environmentally sound and sustainable manner; provides for the maximum level of employment, guarantees
an acceptable level of economic security and generally fosters the economic growth and development of The Bahamas.
The Investment Environment
To undergird the National Investment Policy, the Government will provide:
· A politically stable environment conducive to private investment
· An atmosphere where investments are safe and the expropriation of investment capital is not a considered
option
· A legal environment based on a long tradition of parliamentary democracy, the rule of constitutional and
statute laws and where security of life and personal property is guaranteed
· A stable marcoeconomic environment bolstered by a prudent fiscal policy, a stable exchange rate, flexible
exchange control rules and free trade
· An environment in which freedom from Capital Gains, Inheritance., Withholding, Profit Remittance, Corporate,
Royalties, Sales, Personal Income, Dividends, Payroll and Interest Taxes is ensured
· Essential public services, an adequately equipped police constabulary, modem health and education facilities
and other social services
· Dependable public utilities
· Essential public infrastructure such as roads, ports and airports.
International Financial Centre
The
Government is committed to enhancing the image of The Bahamas as an international financial centre. To this end
the Government will:
· maintain The Bahamas as a leading financial services centre
· monitor all developments in the international financial markets and amend any rules, regulations or legislation
that would preserve and enhance the competitiveness of the financial services sector of the Bahamian economy
· ensure the operation of a clean financial centre with specific rules and regulations to prevent the laundering
of criminally derived assets
· support The Central Bank of The Bahamas in its commitment to bank supervision and promoting high standards
of conduct and sound banking practices
· support the self regulatory measures of the Association of International Banks and Trust Companies (AIBT)
particularly, the established code of conduct for banks and trust companies; continue enforcement of our bank secrecy
laws
Preferential Trade Incentives
Business located in The Bahamas may benefit from the following preferential trade arrangements:
· The Lome Convention
· General System of Preference (GSP)
· Caribcan
· Caribbean Basin Initiative.
Administration of The Investment Policy
Executive Management of the Investment Policy is resident in the National Economic Council (NEC), headed by the
Prime Minister and operational activities will be the responsibility of The Bahamas Investment Authority
(BIA) or the Investor's "One-Stop-Shop".
Establishing a Business In The Bahamas
An international investor seeking to do business in The Bahamas should submit to BIA a project proposal, along
with supporting documents. The proposal should provide the information indicated in the Project Proposal Guideline.
GENERAL
Work Permits
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.
International Owner of Second Homes
Overseas Investors may acquire residential properties in The Bahamas of up to five acres without prior Government
approval. Such acquisitions are required to be registered in accordance with the International Persons Landholding
Act. Second Home Owners are eligible for a Home Owners Residence Card, renewable annually. This card will facilitate
entry into The Bahamas and entitle the owner, his 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 fit and proper owners of residence valued at $500,000 or more.
Areas Especially Targeted for Overseas Investors
· Touristic Resorts
· Upscale Condominium, Time share and Second Home Development
· Marinas
· Information and Data Processing Services
· Assembly Industries
· High-Tech Services
· Ship Repair and other services
· Light Manufacturing for export
· Agro-Industries
· Food Processing
· Mariculture
· Banking and other Financial Services
· Captive Insurance
· Aircraft Services
· Pharmaceutical Manufacture
· Off-shore Medical Centres
NB: This list is not exhaustive and investors interested in areas not included above are encouraged to bring their
interest to the attention of BIA. Please note that investments of less than $250,000 will not be considered.
Local Partners in joint Ventures
International investors are encouraged to establish joint ventures with Bahamian partners. The choice of such Bahamian
partners is in the absolute discretion of the investor.
Areas Reserved for Bahamians
· Wholesale and Retail Operations
· Commission agencies engaged m the import/ export trade
· Real estate and domestic property management agencies
· Domestic newspapers and magazine publications
· Domestic advertising and public relations firms
· Nightclubs and restaurants, except specialty, gourmet and ethnic restaurants and restaurants operating
in a hotel, resort complex or tourist attraction
· Security services
· Domestic distribution of building supplies
· Construction companies, except for special structures for which international expertise is required
· Personal cosmetic/beauty establishments
· Shallow-water scale-fish, crustacea, mollusks and sponge-fishing operations
· Auto and appliance service operations
· Public transportation
International Investors may engage in the wholesale distribution of any product they produce locally.
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