The Bahamas tax
Foreign-source income of residents: No personal income tax. No special regime for new residents in our records.
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Standard rules and foreign-source income
Standard rules
No personal income tax; VAT and National Insurance
No personal income tax
Details
- On: Consumption (VAT) and wages (National Insurance contributions)
The Bahamas Government investment guidance lists personal income, capital gains, inheritance, withholding, dividend and payroll taxes as absent; residents pay VAT and National Insurance contributions instead. 1 2 3
Taxed on
Consumption (VAT) and wages (National Insurance contributions)
Tax residence
No income tax residence test applies because no personal income tax is levied; National Insurance applies to employees, employers and the self-employed.
Visas
Permanent residence and permit holders pay VAT and National Insurance on the same basis.
Other taxes
National Insurance contribution rates rose by 1.5 percentage points from the first Monday of July 2024 (shared by employer and employee), with further 1.5-point rises every two years to 2044. Real property tax applies to owners.
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VAT, social security and other taxes
- National Insurance contribution rates rose by 1.5 percentage points from the first Monday of July 2024 (shared by employer and employee), with further 1.5-point rises every two years to 2044. Real property tax applies to owners.
Questions people ask
Is foreign-source income taxed in The Bahamas?
No personal income tax. The Bahamas Government investment guidance lists personal income, capital gains, inheritance, withholding, dividend and payroll taxes as absent; residents pay VAT and National Insurance contributions instead.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (3)
Official sources
- Frequently Asked Questions (Why should I invest in The Bahamas) · Government of The Bahamas · checked 2026-10-10
- Value Added Tax (VAT) · Government of The Bahamas (Ministry of Finance) · checked 2026-10-10
- Minister Sears updates on Immigration and National Insurance · Government of The Bahamas · checked 2026-10-10