Investing in the Bahamas as a Foreigner 2026: Property, Funds and the Zero-Tax Frame
Investing in the Bahamas comes with no income, capital-gains or inheritance tax, but foreigners pay 10% VAT on property, annual property tax under rules reformed in July 2026, and face permits, exchange control and hurricane risk. The post Investing in the Bahamas as a Foreigner 2026: Property, Funds and the Zero-Tax Frame appeared first on The Rio Times .
Investing in the Bahamas as a foreigner in 2026 comes with several considerations. There is no personal income, capital-gains or inheritance tax, but investors must be prepared to pay transfer VAT, property tax, and permits. The country has a population of around 403,000 people according to World Bank data for 2025, with output per person at about US$39,455 in 2024, less than half of the US level.
The economy measures approximately US$15.8 billion, with 43.8% of government revenue coming from VAT. The Bahamas levies a standard VAT rate of 10%, with a 5% rate for listed items. Unprepared grocery food has been VAT-free since April 2026. The country does not impose personal income tax returns for non-residents. The Bahamas has a fixed exchange rate of 1 Bahamian dollar to 1 US dollar, protected by exchange control.
Non-residents can bring foreign currency to purchase property and register it under Approved Investment Status, allowing them to repatriate sale proceeds and rental income. Bahamian law governs foreign ownership of land, with a Certificate of Registration or a permit required for first-time buyers. Transfer VAT is the largest closing cost, with non-Bahamian buyers paying 10% of the property's value. Bahamian buyers pay tiered rates from 2.5% to 10%.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
