Ambassador highlights Bahamas investment benefits
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| Published on Monday, July 21, 2008 |
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ATLANTA, USA. “Tourism has brought the brightest sparkle to the archipelagic jewels called the Bahamas, and our work in this area has brought great rewards,” said the Bahamas Ambassador to the United States, C. A. Smith as he highlighted the tax free benefits for international investors in the Islands of the Bahamas.
Smith, along with the Prime Minister of Barbados, David Thompson, courted hundreds in attendance at the 12th Annual National Association of Black Hotel Owners, Operators & Developer Summit, held at the Marriott Century Center, Atlanta, July 16 - 20, 2008.
Pointing to the government’s red carpet versus red tape policy, the ambassador said the Bahamas has established generous legal incentives to attract foreign investors and has streamlined government bureaucracy for timely project approval.
Today those categories of investment include: tourism, financial services, international services, e-business, manufacturing, agriculture and fisheries and real estate development.
Veteran politician and former Cabinet Minister, Smith who was recently appointed Ambassador to Washington DC, was accompanied to the summit by Consul General Gladys Sands of the Bahamas Consulate in Miami and Honorary Consul Mike Young, Atlanta.
Known as one of the World’s Best Brands, the Islands of the Bahamas offers a variety of vacation experiences. Among the islands offering quality life styles and well known to the world are Nassau and Paradise Island, Grand Bahama Island, Harbour Island, Abaco, Exuma, Eleuthera, Long Island and Bimini. There are many others lesser known and a few perhaps, unexplored.
“Grand Bahama Island and Cays, the most northerly of our 700 islands is located 54 miles off the coast of Palm Beach, Florida” the ambassador said.
The Commonwealth of the Bahamas is governed by a Westminster-based legislative system; has celebrated 280 years of uninterrupted parliamentary democracy; earned the highest ranking for civil liberties & political rights; and on July 10, marked 35 years as an Independent nation.
“Our country has been faithfully committed for more than 60 years to the ideals necessary to foster the right environment to attract the wealthy to live and conduct business in The Bahamas.”
There exists in the Bahamas a qualified professional community; a sizeable financial sector, supported by the Government commitment to education of over 20% of the national budget.
In addition to the multi-billion dollar Atlantis Resort and Casino on Paradise Island, the Islands of the Bahamas have attracted world class brands.
International Resort brands such as Four Seasons, Ritz Carlton, Westin, Sheraton, Hilton, Wyndham, Ginn and others have made the Bahamas their home; and Foxwood’s and Aman Resorts are on tap for future development.
The Bahamas possesses an outstanding infrastructure for commercial and industrial activity, and offers a highly-skilled workforce: the professional community of accountants, international bankers, trustees, and investment specialists is large, diverse and highly skilled.
There is also a full complement of respected and experienced law firms. The climate for foreign investment is particularly favourable to the finance industry, insurance, manufacturing, shipping, import & export trade, and of course, tourism development.
One of the most attractive elements of investing in The Bahamas is the tax-free status accorded to income.
There are no taxes levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. This tax freedom is available to all resident corporations, partnerships, individuals and trusts.
Investors are also attracted to the stability of the economy, which is steadied by the solid value of the Bahamian dollar. Our currency is pegged to the US dollar on a 1:1 ratio. US dollars and Bahamian dollars are used interchangeably throughout the island chain.
The inducement of a tax-free 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 business licenses and real property taxes for up to 20 years.
• The Hotels Encouragement Act exempts hotel developers from customs duties on raw materials and equipment. Exemptions from real property tax and licensing fees are also available.
• Freeport on Grand Bahama Island gives businesses in the free trade zone exemption from taxes on profits, capital gains, inheritance, income, earnings, distributions, gifts, or on imported and exported goods. In addition, import duties and taxes on real estate have been waived through August 3, 2015.
In accordance with terms of the International Monetary Fund Agreement, The Bahamas has no restriction on current account transactions. Additionally, there are no restrictions on the free repatriation of profits.
Exchange control is administered by The Central Bank of the Bahamas. The Bank, however, delegates to its authorized dealers the power to approve allocations of foreign exchange for certain payments.
The Bahamas is associated with several organizations that ease access to financing and provide important safeguards for investors.
The US Government's Overseas Private Investment Corporation (OPIC), for example, makes direct financing and loan guarantees available to foreign investors.
The Multilateral Investment Guarantee Agency is a World Bank unit and parent of the Multilateral Investment Guarantee Convention, which provides protections similar to those of OPIC. The Bahamas also recently agreed to become a party to the convention on the settlement of investment disputes.
The International Business Companies Act of 1989 and the Companies Act of 1992 have made it easier than ever before to establish a commercial presence in The Bahamas.
Necessary work permits for key personnel are readily granted. Businesses requiring work permits for other than key personnel are encouraged to advise The Bahamas Investment Authority of their needs at an early stage in their discussions.
Accelerated consideration for annual or permanent residence is given to major investors and to owners of residences valued in excess of $500,000.
All international persons owning residences in The Bahamas are eligible to receive, upon application to the Director of Immigration, a "Home Owners Card."
The card does not provide residency status for tax purposes; however, it facilitates entry into The Bahamas and entitles the owner, his/her spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card.
Currently the Bahamas is experiencing significant levels of foreign direct investment, especially in the resort and second home sector.
The ambassador intimated that it is fully expected that "when you add to that, this year’s approvals by the National Economic Committee of the Bahamas which exceeds $10.2 billion - spread over twelve islands, the next two decades will see the country transformed as the destination of choice for luxury vacations and high-end real estate development.”
“Therefore, Ladies and Gentlemen, the Islands of the Bahamas’ envious location as the closest offshore destination to the East Coast USA, offering easy access as well as lower ticket prices by air is of great benefit to developers and end purchasers.
“The government and people of the Bahamas extend a warm invitation to you to consider and invest in the Islands of the Bahamas.” | | | | Reads : 209 |
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