A Global Leader In High Net Worth Investment Solutions (And THE Leader in Beautiful Beaches and Clear Turquoise Water)
In addition to world-renowned beaches, resort destinations and of course the famous swimming pigs, The Bahamas remains a tier 1 international financial centre which remains highly competitive in the global arena. There are approximately 250 licensed banks and trust companies, 64 licensed administrators and 160 registered securities intermediaries. These institutions are supported by highly experienced and trained industry professionals, accountants and legal advisors, many of whom have been recognized by international associations as leaders in their field.
To maximize its position as both an international financial centre, resort destination, and real estate investment mecca, the government of The Bahamas has implemented its Permanent Residency Program for the high net worth global investor.
License Partner Colin Lightbourn says “The Bahamas Permanent Residency program has become very popular with high net worth individuals from Europe, Canada and South America in particular. Qualified investors are seeking long-term investment strategies that suit both financial and lifestyle goals. The government’s requirement is a $750,000 purchase of a residence or $1,500,000 to have the residency process ‘fast-tracked’. It’s not only the potential tax benefits and portfolio diversification but we have the proximity to the US, some of the world’s most beautiful beaches and water and tremendous opportunities and products in the real estate market. The infrastructure is also here and the ability to move freely through the islands and internationally is very convenient.
There is a lot of ‘value-added’ to being a Permanent Resident of The Bahamas.”
“Second and third homeownership is one of the fastest-growing sectors in the real estate industry. The choices are very diverse and the real estate is of a very high quality. There are golf communities, marina communities, luxury beachfront estates and of course The Bahamas is famous for private islands which have become a trend with celebrities and billionaires. Our concierge-level service makes it very easy during the purchase process as we work with the top lawyers and bankers in the country. Our professional team will also manage and rent the property after the sale is completed.”
Permanent Residency is also not limited to one individual. A person holding a certificate of permanent residence who wishes to include their wife or husband, or dependent child under the age of eighteen (18) and ordinarily resident in his household, may have them endorsed on the certificate at the time of his original application or at a subsequent date. Permanent residents may bring their own personal assistants or household staff with them to The Bahamas subject to government clearance and the issuance of work permits.
Questions and Answers with Engel & Völkers Advisor Leo Huber
Leo has 20 years past experience in private banking where he was Head Trader and then Vice-President of investment strategy at the Bahamas office of Pictet, one of the world’s premier private banking institutions
What is the Bahamas Permanent Residency program?
Simply put, a Permanent Residency Permit gives an individual the right to live permanently in The Bahamas and travel freely to and from The Bahamas.
What would the typical candidate for PR look like?
Ultra-high net worth individuals with a global asset valuation starting in the eight-figure range looking for a sound alternative investment with the added bonus of a residency permit that might benefit their tax status.
What are the tax advantages of residency in The Bahamas?
There may be advantages if the client relocates to The Bahamas. For assets and portfolios held locally, there are no taxes on capital gains, inheritance, corporate and personal income, dividends and interest. However, it is possible to be a tax resident in more than one jurisdiction. We recommend confirming first with legal council in your home jurisdiction. There would be no advantage for a citizen of the United States who are taxed on citizenship rather than residency.
What are the requirements to achieve permanent residency?
A Permanent Residency Permit may be applied for upon the purchase of a residence with a value of $750,000 or greater. Applications may be ‘fast-tracked’ with a purchase of $1.5m+
Does Permanent Residency give me the right to work?
Not directly but a separate work permit can be obtained. Also, The Bahamas government has recently proposed the Commercial Enterprises Bill 2017 which seeks to liberalise the granting of work permits to an enterprise that wishes to establish itself in The Bahamas and requires work permits for its key personnel.
What are the benefits from Permanent Residency in The Bahamas?
This question can be answered two-fold. Aside from the potential tax incentives mentioned previously there are both economic and lifestyle benefits to residency in The Bahamas not limited to:
– Peaceful and stable democracy since 1729.
– Stable property market.
– Banking and financial center with branches from most global institutions.
– Excellent airlift and global connections. The Bahamas is only 50 miles from the
United States with direct flights also to the UK, Europe, and Latin America.
– Clean environment, crystal clear waters and a yachting and fishing haven
– Ideal and yearlong temperate climate with hundreds of secluded islands to chose
from and explore.
– Accredited schools.
Why is The Bahamas an attractive location for these benefits?
The Bahamas is an independent nation with compliant legislation and a consultative legislative approach. As a former British colony the Bahamas remains in The Commonwealth and the highest court of appeal is the UK Privy Council. The Bahamas provides proactive incentives for Investment, a highly trained and professional workforce and all essential public services within a modern infrastructure.
Do I have to live in The Bahamas full time?
No, the Permanent Residency permit allows the holder to travel freely to and from The Bahamas.
Who is best suited to benefit from this residency program?
Astute investors who wish to diversify their global asset holdings. With uncertainties and geopolitical risks around the world, The Bahamas offers safety both financially and as a wonderful place to live.
What is the best way to figure if this is a suitable option for ones wealth security and diversification?
We recommend consulting with both your legal and financial advisors of the potential economic and tax advantages of investments outside your home jurisdiction.
How do I apply for Permanent Residency?
Applications must be made to the Department of Immigration at the time of closing on the property purchase. Our concierge-level services facilitate the process by connecting the purchaser with a qualified and competent local attorney familiar with all aspects of the transaction and application procedures.
Why choose Engel & Völkers?
Globally Engel & Völkers has set a standard. For the discerning Ultra High net worth client we offer a concierge service not only in the area of high-end real estate but also to facilitate a client’s investment and relocation to The Bahamas with local legal and financial institutions to make the process as professional as possible. Our concierge-level services facilitate all aspects of the transaction before, during and after the property acquisition.
