Tourism, Banking, Tax Break, and Investor Information for The Bahamas

TOURISM AND BANKING

Tourism is the country's leading industry (85% of tourists are from North America), followed by banking. Barclays, CitiBank, Royal Bank of Canada and CIBC are among the eight clearing banks doing business here. The Bahamas is FATF compliant, which means it meets the international criteria as a country serious about fighting money laundering.

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. The per capita income of the country is $11,000, which puts it amongst one of the highest in the region. Besides political stability, proximity plays a key role in the country's fortunes. The Bahamas is the closest port for luxury cruises from South Florida. And it's only a 30-minute plane hop away.

TAX BREAKS/INCENTIVES

The Bahamas enjoys strong ties with its closest neighbour to the north - the United States. A stable political environment and investor friendly policies have made this island nation one of the most desirable countries in which to live and invest.

One of the Bahamas' key attractions is its tax friendly environment. The country does not levy taxes on capital gains, corporate earnings, personal income, sales, inheritance or dividends. This tax freedom is available to all resident corporations, partnerships, individuals and trusts. Corporations find the Bahamas an ideal place to establish a business. The government is committed to a "No Income Tax" policy.

INVESTORS

In the last decade, Sun International, the international hotel company, has invested $850 million on the world class Atlantis resort and casino, and exclusive Ocean Club and Golf Course development on Paradise Island.
Sun, now Kerzner International, in September, 2003 broke ground on the first phase of a $600 million expansion on Paradise Island.

In Freeport, Grand Bahama, Hutchison-Whampoa, the Anglo-Chinese conglomerate, has established a container port, which rivals that of South Florida, and has teamed up with the local government authority in a massive airport and hotel re-development programme.

ECONOMIC POLICY

The Bahamas Financial Services Board (BFSB) was created in 2000 to promote the country’s role in the international community. With industries such as banking, trust services, mutual funds, capital markets, accounting, legal and insurance represented, the BFSB oversees the development of these industries within the international financial arena. During the 1990s, New Providence and Grand Bahama experienced an unprecedented level of growth as a result of investment by locals and non-Bahamians. The tightening of secrecy laws has led to a fall-off in the number of international business companies forming in the Bahamas. But in spite of this set back, the financial community appears to be holding its own.

For more information on these topics please visit The Central Bank of The Bahamas.