Death & Taxes?
Indeed, many foreign companies set up head offices in the Bahamas to take advantage of this largely tax-free environment.
If there is one disadvantage to this tropical tax paradise, it is that the Bahamian government relies on these import duties and tariffs to raise 65% of its revenue. Consequently, import duties are high, averaging nearly 33%. In addition, the government charges a 7% stamp tax on imported goods.
Fortunately for investors however, the Bahamian tax system is rife with all manner of exemptions and investment incentives that provide relief from duties, taxes, and fees. Hotel developers for instance, are exempt from customs duties on raw materials and equipment. They may also claim exemptions from Bahamas real estate tax and business licensing fees. Agricultural businesses are eligible for interest-free loans for the purchase of supplies.