The attractiveness of a low-tax environment and a stable currency are enhanced by a series of investment incentives that provide relief from customs duties on approved raw materials, equipment and building supplies, as well as allowing exemptions from real property taxes for up to 20 years.
The following incentives are open to any qualifying individual or firm:
- The Hotels Encouragement Act — Provides duty free entry of approved construction materials, furnishings and fixtures for hotel development as well as provides for exemption/concession from real property tax for the first twenty years of operation of a hotel/resort.
Hotels with as few as four guest rooms on a Family Island and those with a minimum of ten rooms in New Providence qualify for concessions under the Hotels Encouragement Act.
The act has been amended to also include shops and restaurants, which have a touristic component, and entertainment facilities.
- The Industries Encouragement Act — Provides duty-free concessions for the importation of machinery, raw materials and building supplies for manufacturing entities in addition to exemption from Real Property Tax for a 15 year period.
Duty free concessions for applicants is valid for the first five years of operation. Thereafter, applicants would be required to pay a reduced rate of duty (10%) on all approved materials and equipment imported.
- The Bahamas Vacation Plan and Time Sharing Act — Provides duty-free concessions for building supplies for the construction of timeshare facilities.
- The Free Trade Zones Act — Designates areas within The Bahamas as free industrial and commercial zones.
- The Hawksbill Creek Agreement Act — Allows the Port Area that is the free trade zone of Freeport, Grand Bahama, freedom from all taxes until 2015 and from excise taxes, stamp duties and most customs duties until 2054.
- The Tariff Act — Allows for customs duty exemption on specified raw materials, supplies and equipment for Agriculture, Floriculture, Horticulture, Fisheries, Forestry, Cottage and Light Industries, and Commercial Printing.
- The Export Manufacturing Industries, Encouragement Act, The Agricultural Manufactories Act, The Spirits and Beer Manufacture Act — Investment incentives under these acts include exemption from the payment of customs duties on building materials, equipment and approved raw materials and real property taxes for periods up to 20 years.
- The City Of Nassau Revitalization Act — Provides incentives and duty concessions in connection with the restoration, repair and upgrade of buildings, commercial and residential, in the City of Nassau.
- The Family Island Development Encouragement Act — Provides duty concessions on the importation of building materials, equipment and supplies for commercial and/or residential developments on specified Family Islands.
|Areas of Responsibility||BIA Officer|
|Hotel Encouragement Act||
|Industries Encouragement Act
The Ministry of Economic Affairs
International Persons Landholding Act
|Bahamas Vacation Plan & Time-Sharing Act||Shenique Thurston
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