The Bahamas expat tax guide
Caribbean · how a foreigner who moves to The Bahamas is taxed · 2026 · Very expat-friendly
If you move to The Bahamas, you become a tax resident when economic Permanent Residency via real-estate investment (or annual residence permit). As a resident you are taxed on a territorial basis — The Bahamas levies no personal income tax at all, so a new resident's worldwide income (including foreign pensions and capital gains) is simply not taxed. The top personal income tax rate is 0% (no personal income tax). A foreign pension is treated as: Not taxed (no income tax). The Bahamas also offers the Economic Permanent Residency (real estate) regime, which can sharply change this picture. It lacks a US tax treaty and lacks a US totalization agreement. Overall it reads as very expat-friendly for an inbound mover. General information, not tax advice — verify with The Bahamas's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
The Bahamas expat tax at a glance
| Question | The Bahamas (2026) |
|---|---|
| When you become tax resident | Economic Permanent Residency via real-estate investment (or annual residence permit) |
| Residency day-count trigger | No day count (facts-and-circumstances test) |
| How residents are taxed | Territorial — The Bahamas levies no personal income tax at all, so a new resident's worldwide income (including foreign pensions and capital gains) is simply not taxed. |
| Top personal income tax rate | 0% (no personal income tax) |
| Foreign pension treatment | Not taxed (no income tax) |
| Foreign capital gains / dividends | Not taxed (no income tax, no capital gains tax) |
| Special expat / non-dom / retiree regime | Economic Permanent Residency (real estate) |
| US income tax treaty | No |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for The Bahamas, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to The Bahamas
The first thing that matters is tax residency: economic Permanent Residency via real-estate investment (or annual residence permit). Because The Bahamas has no simple day count, residency turns on where your real home and life are, which is harder to plan around than a day rule.
Once resident, The Bahamas largely leaves foreign income alone (territorial basis), which is why it appears on lists of friendly destinations for expats and remote workers. Crucially, The Bahamas charges no personal income tax on individuals, so salaries, pensions and gains are not taxed locally.
Foreign pensions and investments
Foreign pension: Not taxed (no income tax). Foreign capital gains and dividends: Not taxed (no income tax, no capital gains tax). These outcomes can be overridden by a double-tax treaty, which decides whether the source country or The Bahamas taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The Economic Permanent Residency (real estate) regime
Permanent residence is granted to investors who buy qualifying Bahamian real estate; the minimum was raised to USD 1,000,000 effective 1 Jan 2025. It is an immigration route, not a tax regime, since there is no income tax to exempt.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with The Bahamas's tax authority before relying on it.
US citizens and social security in The Bahamas
| Question | The Bahamas |
|---|---|
| US income tax treaty? | No |
| US social-security totalization agreement? | No |
| Tax basis for residents | Territorial |
| Top personal income tax | 0% (no personal income tax) |
There is no US tax treaty with The Bahamas, so US citizens rely on the Foreign Tax Credit (and the Foreign Earned Income Exclusion) under US domestic law to soften double taxation. With no totalization agreement, you can be exposed to social-security-type charges in both the US and The Bahamas. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to The Bahamas
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| The Bahamas (this country) | Territorial | 0% (no personal income tax) | Economic Permanent Residency (real estate) |
| Cayman Islands | Territorial | 0% (no personal income tax) | Residence by independent means |
| Oman | Territorial | 0% (no personal income tax) | 18-month foreign-income exemption (from 2028) |
| Monaco | Territorial | 0% (no personal income tax) | None |
| Bermuda | Territorial | 0% (no personal income tax) | None |
| British Virgin Islands | Territorial | 0% (no personal income tax) | None |
Frequently asked questions
When do you become a tax resident of The Bahamas?
Economic Permanent Residency via real-estate investment (or annual residence permit). There is no simple day count — residency turns on facts and circumstances such as your home and centre of life. Once resident, The Bahamas taxes you on local-source income only (foreign income is generally outside scope). This is general information for 2026, not tax advice — verify with the official authority.
How does The Bahamas tax a foreign pension?
Not taxed (no income tax). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the Economic Permanent Residency (real estate) regime in The Bahamas?
Permanent residence is granted to investors who buy qualifying Bahamian real estate; the minimum was raised to USD 1,000,000 effective 1 Jan 2025. It is an immigration route, not a tax regime, since there is no income tax to exempt. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with The Bahamas's tax authority.
Is The Bahamas good for US citizens or retirees?
The Bahamas does not have a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for The Bahamas compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. No personal income, capital gains, inheritance or wealth tax. Revenue comes from VAT, customs duties, stamp duty and property tax. Not on the IRS treaty list nor the SSA totalization list. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with The Bahamas's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21