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Bahamas Seeks to Increase Investment with Tax Changes

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The Bahamas has long been one of the favored destinations for international travelers and tourists looking for fun not far from the shores of the United States, but in recent years the islands have suffered a bit of downturn. Two recently introduced acts hope to turn things around for the nation of some 700 islands, and in particular in the city of Nassau.

Nassau has always been a popular cruise ship port of call, but in recent years that popularity has waned a bit. The City of Nassau Revitalization Act is aimed at bringing in more investment with tax concessions over a five year period of time. With parts of the city suffering from urban blight, the hope is to bring in more investment in both upscale tourist destinations as well as nice housing for residents and international property visitors. Upscale restaurants and shops will bring more tourists and, in turn, help to spur additional investment.

The new act will exempt all imported materials from taxes that are used for building within the city of Nassau. Additionally, property taxes on investment buildings will also be exempted for up to five years. The same basic rules will apply to outlying islands through the Family Islands Development Encouragement Act. It is hoped that both Nassau and the other islands of the beautiful Bahamas will see an increase in investments and tourism as a result of these new laws.

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