The Bahamas is literally the Pearl of the Caribbean with pristine beaches where you can still catch crayfish by hand. However, apart from the amazing water sports and high roller lifestyle for which the Bahamas has become famous, the country has still managed to maintain all the benefits of an offshore tax-free paradise, as well as holding on to its status as one of the world’s top financial centers and corporate services hubs. 

According to the government's official website, as much as "24% of the National Budget is allocated to education", demonstrating the right definition of a country that is investing in its youth and its people. Besides this, the country's proximity to key markets and investment incentive policies are just a few elements or factors that make high-net-worth turn their heads towards this Caribbean country.

It would take a book to deal with all the amazing structuring benefits that the Bahamas would offer but here are a few, which also represent strong reasons why Mundo recommends the Bahamas as an offshore destination:

-Safe offshore banking: Bahamian banks historically hold large capital and do not generally lend so they are quite stable and safe, and besides this, they operate the financial affairs of investors with complete fiscal transparency. A great factor in this is the IBC Act (2014). 

-No tax corporate structures. Yes, local taxes are not imposed on personal or corporate income, capital gains, gifting, or inheritance. This makes the Bahamas one of the few countries in the world that does not have taxes.

-Residency and tax residency packages with zero tax on foreign-sourced income. 

-Leading sectors are banking and mutual funds; trust management is also prominent. The insurance sector has assets of US$1.3bn. Professional services are excellent. 

-As if everything else was not enough, the Bahamas has new fast tracked residency that can help you with your plans in an easier and faster way.

-Bahamian companies can hold crypto. Also, funding through ICO and other crypto dealings licensing is available, including crypto investment funds.

-It is also, one of the best fund jurisdictions. However, investors can explore a lot of options when doing business in the Bahamas.

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History

When getting to know a country, a great practice is to read something about its history and development as a country. In the Bahamas' case, this journey can be traced back even to the discovery of America. Christopher Columbus' first encounter with the New World was when he landed on the Bahamian island of San Salvador on 12 October 1492. After various nationalities attempted to settle on the islands in the early 17th century, a group from Bermuda successfully established a colony on Eleutheria in 1648.

In 1666 more Bermudans settled New Providence, and, after a period of some lawlessness, the Bahamas became an English colony in 1718. In the late 18th century, British loyalists arrived from the 13 Colonies. Most of the black population arrived as slaves, though many emancipated slaves arrived in the 19th century.

Nassau became a tourist resort late in the 19th century. In 1954 there were 32,000 annual visitors; now there are more than 4 million. The Bahamas is an Independent Nation State since 1973, when the Commonwealth of the Bahamas became an independent nation and a member of the Commonwealth; it is a member of the UN.

A jewel in the Caribbean Sea: Welcome to the Bahamas

The Caribbean has always attracted high-net-worth individuals looking for better opportunities in places that erase financial pressures from their lives. This might seem impossible in their home countries, and that is why the Caribbean seems like paradise. However, the answer to their problems might be all fitted in one place: the Bahamas.

The Bahamas is a place that, whether you want it or not, turns your head to a dreamy lifestyle. And it might be more achievable and possible than what you might expect at first. This jurisdiction has more to offer than crystalline beaches, and we want to prove it.

In the Bahamas, you can enjoy what might be called heaven, since you can enjoy its beautiful beaches for almost the whole year. The climate of the archipelago is semitropical and has two seasons, summer and winter. During the summer (May through November), the climate is dominated by warm, moist tropical air masses moving through the Caribbean. Midsummer temperatures range from 21 °C to 34 °C. In winter (December through April), temperatures during the winter months range from 15 °C to 24 °C.

The archipelago lies in the Atlantic Ocean, extending more than 650 miles from the eastern coast of Florida to the southeastern part of Cuba. Their strategic location has given the history of The Bahamas a unique and often outstanding charm.

As an interesting fact, it was there that Christopher Columbus made his original landfall in the Americas. 

Bahamian population is estimated at 400,000 (2019 est.), in an area of 14.000 square kilometers if you add up all the islands that make up the archipelago.

Nevertheless, most of the population lives in urban areas, with two-thirds living on New Providence Island where Nassau is located. The next most populous island is Grand Bahama, with about 55,000. About 91% of Bahamians are black, 5% are white and 2% are mixed race.

In case you are just getting to know the wonders of the Bahamas, we wanted to show you a general image of how it is in the present, after developing as a jurisdiction for business:

Economy: The national currency is the Bahamian dollar, but U.S. money is also accepted throughout the islands. Bahama’s economy is mainly based on Financial Services and Tourism, but surprisingly it was relatively late in developing as a financial centre. In tourism, you must know that they receive around 4m visitors a year. Despite the concentration of the population in urban centres (especially Nassau and Freeport) that are dedicated to tourism, the traditional pattern of small farming and fishing prevails remarkably in the southeastern islands. Likewise, the Industries Encouragement Act (1970) offers manufacturers relief from tariffs and various taxes. 

GDP was estimated at US$12.16bn in 2017 (est), and GDP per capita was about US$27,700 in 2017 at purchasing power parity. This is above average for the region, but well behind the most successful (and smaller) jurisdictions such as the Cayman Islands and the British Virgin Islands. The Bahamas recovered quite quickly from the global financial crisis, thanks mainly to increased tourism, particularly from the US, and new investments.

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Business environment: As the economy depends heavily on the offshore financial sector, there is relatively little government involvement in business in the Bahamas, particularly for offshore businesses. The onshore business activity requires a licence under the Business Licenses Bill (2010). This is a result of the Bahamas' long-term policy of promoting itself as an international finance centre, accompanied by a well-developed regulatory structure. There are detailed lists of those business activities for which the government will, or will not, normally issue a licence. The rules governing foreign investment are complicated, and expert guidance is necessary. Therefore, our experts at Mundo are more than willing to help you with it. 

Accessibility and Official Language: Getting to the Bahamas is honestly easy from any major airport in the United States and from some of the largest capitals in the Caribbean region. Once on the island, you don't have to worry about learning another language since English is the official language. However, nearly all the population also speak Bahamian Creole. A small minority speak Haitian Creole. 

Infrastructure: Major road construction has been completed in Nassau and on the Family Islands, which have also benefited from improvements in their electricity systems and airports. From air and sea access to voice and data communications, the Bahamas offers an infrastructure for economic development. Communications with other countries are available through various international and regional airlines which provide service to strategic destinations in North and South America and the Caribbean, and even Europe.

Especially six major airports. The Bahamas brings the reliability, performance, and bandwidth availability for basic to complex voice, Internet and data applications. They do so through a wide range of telecommunications and Internet Service Providers.

Religion: The Bahamas is an overwhelmingly Christian country; about 80% of the population is Protestant (especially Baptist) and about 15% are Roman Catholic.

Government and politics: This country is a parliamentary democracy under a constitutional monarchy. It is also a Commonwealth realm. The Westminster-style government is business-friendly. The May 2017 general election saw an extraordinary turnaround in which the ruling parting (the Progressive Liberal Party) lost all but four seats. 

Immigration Process: This process is controlled by Residence and Work Permits. Since there is an unemployment problem, the Government controls access to Bahamian jobs with this system of work permits. Nevertheless, access to housing has been recently relaxed for foreigners, who are now encouraged to buy or build 'second homes'. Also, the government wants to allow the Bahamas to attract the best finance industry talent, and therefore this sector is working with the authorities to develop a more flexible work permit framework. 

Judiciary system: The judiciary is independent and based on British common law. Allegations of government interference in the judicial process are rare. However, laws to combat corruption by public officials have been applied inconsistently. The highest local court is the Supreme Court, and there is a Court of Appeal; final appeals can be made to the Privy Council in London.

The country was placed on both the FATF and OECD 'blacklists' in 2000. However, the government reviewed its legislative structure to make the Bahamas follow tougher international standards. A tax information exchange agreement was signed with the USA in 2002, and the new Bahamian government in 2002 emphasized its determination to maintain the country as a fully compliant international financial centre. The Bahamas has since signed a further 30 tax information exchange agreements.

As you can see, the Bahamas is a country that is worth looking at. If you are looking for a good business environment, in a beautiful and warm place that welcomes you with open arms, as well as good business opportunities, then the Bahamas is a perfect match. Allow us, and our partners, to show you the best options in the country and any information you may need. Contact us now!

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