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Welcome to the tropical paradise of The Bahamas, where turquoise waters, white sandy beaches, and a vibrant culture are a part of everyday life. Whether you’re investing in a vacation home in Nassau, land for sale to develop your own tourist resort or another endeavor, The Bahamas welcomes you.
As you consider making this beautiful archipelago your home or investment destination, understanding The Bahamas Investment Authority (BIA) is key. In this comprehensive guide, we’ll walk you through the various opportunities the BIA presents for investors, the processes involved, and essential information to make your investment journey smooth.
Let’s get started.
Table of Contents
What is The Bahamas Investment Authority (BIA)?
The Bahamas Investment Authority serves as the gateway for local and international investors looking to capitalize on the unique opportunities offered by the islands. Whether you are eyeing prime real estate, exploring business ventures, or seeking investment incentives, the BIA is your go-to resource.
BIA Investment Opportunities
There are many types of investment opportunities available to foreign investors, whether you’re a US citizen or from further afield. Read on to find out what they are.
Permission to Purchase or Acquire Real Property
Investors seeking to acquire real property in The Bahamas, particularly non-Bahamians dealing with undeveloped land of two or more adjoining acres, must go through the process of obtaining a Permit to Acquire Property. This application process is also mandated for Bahamians if the intended use of the property is not as an owner-occupied residence.
Eligibility
- Non-Bahamians acquiring an interest in undeveloped land or islands for sale
- Non-Bahamians acquiring an interest in two or more adjoining acres
- Bahamians, when the intended use is not as an owner-occupied property
Process
- Fill out Form 3, the Application for Permit, International Persons Landholding Act of 1993, in its entirety.
- Submit Form 3, along with the required supporting documents, to the Secretary of the Investments Board.
- Subject to the nature of the proposed commercial activity, the application undergoes review by the Securities & Intelligence Branch of the Royal Bahamas Police Force and relevant Government Ministries, as applicable.
- Upon approval, an official approval letter is prepared.
- After receiving the approval letter, the applicant is required to make the necessary fee payment to the Public Treasury.
- Submit a copy of the payment receipt to the Investments Board, which then issues the Permit to Acquire Property.
- Upon approval, the Investments Board prepares an official approval letter.
A determination on the application is communicated within 30 days following the submission of all required documents.
Fees
Upon receipt of the approval letter, the applicant must pay the stipulated fee of BS$500.00.
This fee can be paid at the Public Treasury, and for those accessing the service from a Family Island, payment may be made at the Public Treasury offices on Grand Bahama or Abaco.
Registration of Purchased or Acquired Real Property
Investors, whether non-Bahamians or Permanent Residents, seeking to acquire an interest in condominiums or properties for owner-occupied purposes or construction can opt for the streamlined process of registering their acquisition through The Bahamas Investment Authority (BIA). The aim of Certificates of Registration is to facilitate specific categories of non-Bahamians to register their property interests without the need for prior government approval.
Eligibility
- Non-Bahamians acquiring an interest in land or a condominium for owner-occupied use, provided the land is undeveloped and less than two adjoining acres.
- Permanent Residents of The Bahamas.
- Non-Bahamians acquiring an interest in land through a device or by inheritance.
- Non-Bahamians acquiring an interest in land through a court order or as a mortgagee.
- Non-Bahamians acquiring a leasehold interest for trade or business for a period exceeding 21 years.
Process
- Fill out Form 1, the Certificate of Registration under the International Persons Landholding Act of 1993, in its entirety.
- Fulfill the necessary fee payment at the Public Treasury and attach the receipt to the application.
- Submit Form 1, accompanied by the specified supporting documents, to the Secretary of the Investments Board.
- The BIA processes the application, and if successful, it will issue the Certificate of Registration.
The registration process is typically completed within 30 days following the submission of all required documents.
Fees
The applicant must pay the application fee of BS$250.00. The fee can be paid at the Public Treasury.
Registration of a Time-Sharing Purchase or Acquisition
Individuals, both Bahamians and Non-Bahamians, who have acquired an interest in a timeshare in The Bahamas are required to register this interest with The Bahamas Investment Authority (BIA).
Within 60 days of the execution of a time-sharing contract, the Developing Owner or their managing agent must apply to the Registrar to register the rights of the time-sharing purchaser.
The registration is facilitated by the Developing Owner of the time-share resort, ensuring compliance with regulations outlined in The Bahamas Vacation Plan and Time-Sharing Act of 1999.
Eligibility
The process is open to both Bahamians and Non-Bahamians who have acquired an interest in a timeshare.
Process
- Complete Form A, Application for Registration of Time-Sharing Purchaser Licence pursuant to The Bahamas Vacation Plan and Time-Sharing Act, 1999, in its entirety.
- Include a contractual agreement, such as a Conveyance, Membership Agreement, or any relevant agreement related to the timeshare.
- Pay the applicable fees at the time of submitting the application.
- A fee of BS$25.00 is payable for each acquisition of an interest sought to be registered. The payment should be made to The Bahamas Public Treasury.
- Upon approval, the BIA initiates the processing of the time-share certificate.
The registration process is typically completed within 30 days following the submission of all required documents.
Fees
A fee of BS$25.00 is payable for each acquisition of an interest sought to be registered. Payment should be made to The Bahamas Public Treasury.
Establishing a Business in The Bahamas
The Bahamas welcomes foreign investors interested in establishing businesses within its shores. To initiate this process, non-Bahamians or Permanent Residents must submit a Project Proposal to the BIA.
Eligibility
The following requirements must be met:
- Be Non-Bahamian.
- Possess a minimum investment of BS$500,000.00.
- Be interested in an area not reserved for 100% Bahamian participation.
Process
- Prepare and submit a Project Proposal, adhering to the BIA Project Proposal Guidelines, along with the necessary supporting documents, to The Bahamas Investment Authority.
- The BIA processes the application and forwards it to the National Economic Council (NEC) for determination.
- Depending on the nature of the proposed business activity, relevant government ministries or agencies, such as the Ministry of the Environment, Ministry of Works and Transport, Ministry of Housing, and Respective Family Island Local Government, may be consulted for input.
- Once a determination is made, the BIA communicates the decision to the applicant in writing.
- Upon approval, the BIA collaborates with other Government agencies to facilitate the implementation of projects.
The process is typically completed within 60 days following the submission of the project proposal and all required documents.
Fees
There are no fees associated with the submission of a project proposal.
Applying for an Investment Incentive Concession
The Bahamas, renowned for its low-tax environment and currency stability, offers a compelling investment landscape. Concessions are available under the Hotel Encouragement Act, The Bahamas Vacation Plan and Time-Sharing Act, and the Industries Encouragement Act.
Eligibility
The process is open to both Bahamians and non-Bahamians, but non-Bahamians must have prior approval from the NEC to establish a business in The Bahamas, which is part of the application process listed above under “Establishing a Business in The Bahamas.”
Process
- Complete and submit the relevant application form. Currently, there are three forms, and the one you submit depends on the type of business seeking concessions. They include:
- The Hotels Encouragement Act application form for exemption/reduction of customs duties
- Form No. 1 Industries Encouragement Act, Form of Application for Approval of Product, and
- The Bahamas Vacation Plan and Time-sharing Regulations Form B Application for Developing Owner’s/Managing Agent’s License pursuant to The Bahamas Vacation Plan and Time-sharing Act, of 1999.
- The BIA conducts a thorough evaluation of the application to ensure compliance with the relevant Act
- The applicant or their authorized agent is notified in writing of the BIA’s determination.
The process takes between 30-45 days following the submission of the project proposal and all required documents.
Fees
There are no fees associated with the application for incentive concessions.
Establishing a Time-share Resort in The Bahamas
Embarking on the establishment of a time-share resort in The Bahamas involves a straightforward yet crucial process facilitated by the BIA. This opportunity is open to both Bahamians and Non-Bahamians aspiring to construct a new building, undertake improvements, repairs, or alterations to existing structures, or modify the use of an existing building, all to operate a time-sharing project.
With the average rental prices in The Bahamas, there’s lots of enthusiasm around this investment opportunity.
Eligibility
All applicants must meet the following criteria:
- Financial Suitability and Capability: All interested parties including the applicant, the individual responsible for the time-sharing project (if different from the applicant), the developing owner, the marketing agent, and the managing agent possess the financial capacity and are deemed fit and proper to execute their respective roles within the time-sharing project.
- Facility Inspection and Compliance: The parties have had the facilities of the time-sharing project inspected as per section 11, and the project adheres to the prescribed requirements.
- Accommodation Provision: The interested parties confirm that the time-sharing project caters to accommodation needs in New Providence, offering not less than fifty units, or on the Family Islands, providing not less than twenty-five units.
- Compliance with Regulatory Requirements: The interested parties meet all stipulated requirements outlined in The Bahamas Vacation Plan and Time-Sharing Act.
- Legal and Business Compliance: The interested parties are not in violation of any other laws pertaining to business operations in The Bahamas, emphasizing that their business activities align with the best interests of The Bahamas.
Process
- Complete and submit Form B, Application for the Time-Sharing Project, in its entirety, including all required supporting documents.
- Pay the application fee at the submission stage.
- The BIA processes the application, scrutinizing it against specific criteria.
- Once the BIA concludes its evaluation, a written notification is issued to the applicant or their authorized agent, detailing the determination made regarding the Time-Sharing Project application.
The process is typically completed within 60 days following the submission of the application and all required documents.
Fees
The fees vary across the types of development and the number of units within a development.
For a Developing Owner License, the fees are:
- Projects with up to 10 units, BS$1,000.00
- Projects between 10 and 20 units, BS$2,000.00
- Projects between 20 and 50 units, BS$3,000.00
- Projects over 50 units, BS$5,000.00
For a Marketing Agent Licence, the fees are:
- Projects with up to 10 units, BS$500.00
- Projects between 10 and 20 units, BS$1,000.00
- Projects between 20 and 50 units, BS$1,500.00
- Projects over 50 units, BS$2,500.00
For a Managing Agents Licence, the fees are:
- Projects with up to 10 units, BS$25.00/year
- Projects between 10 and 20 units, BS$50.00/year
- Projects between 20 and 50 units, BS$75.00/year
- Projects over 50 units, BS$100.00/year
All fee payments should be made by cheque, payable to the Public Treasury, upon submission of the application.
Areas Targeted for Foreign Investment
There are specific areas that the Bahamian government highlights as perfect for foreign investment. While comprehensive, this list isn’t exhaustive, and if you have a project you feel fits in this category, contact the BIA for further information.
- Tourist Resorts
- Upscale Condominiums, timeshares, and second home developments
- Services in the field of information and data processing
- Assembly industries
- High-tech services.
- Repairs and services related to ships
- Light manufacturing for export
- Agriculture industries
- Food processing
- Mariculture
- Banking and other financial services
- Captive insurance
- Aircraft services
- Pharmaceutical manufacture
- Off-shore medical centers
Investment Areas Reserved for Bahamians
Just as there are areas where foreign investment is welcome, there are also areas that are for Bahamians only. These include:
- Wholesale and retail businesses
- Commission agencies engaged in import/export trades
- Real estate and domestic property management agencies
- Domestic newspapers and magazine publications
- Domestic advertising and public relations firms
- Security services
- Domestic distribution of building supplies
- Construction companies, barring special structures for which international expertise is required
- Personal cosmetic/beauty establishments
- Commercial fishing within the exclusive economic zone of The Bahamas
- Auto and appliance services businesses
- Public transportation inclusive of locally solicited charter boat tours
- Landscaping
More About The Bahamas Investment Authority
What is BIA in The Bahamas?
The Bahamas Investment Authority, operating from the office of the Prime Minister as the administrative arm of the National Economic Council and Investments Board, guides economic growth and development within The Bahamas. They exist to simplify foreign and domestic investments in The Bahamas.
What is The Bahamas policy on foreign investments?
The Bahamas welcomes foreign investors and even offers incentives for specific types of projects.
Can you invest in The Bahamas?
Absolutely. There are many ways to invest in The Bahamas. From buying a Bahamas investment property to establishing a food processing business, or offering professional services across many fields, there are many ways to invest in The Bahamas.
Who is the director of the BIA?
The Honorable Isaac Chester Cooper, as the Deputy Prime Minister and Minister of Tourism, Investment, and Aviation, oversees the running of the BIA.
Getting Support Investing in Property in The Bahamas
Investing in The Bahamas goes beyond a mere financial endeavor; it’s a journey toward embracing the remarkable lifestyle, rich culture, and limitless opportunities offered by this breathtaking nation.
At MCR Bahamas, we specialize in connecting investors with their ideal properties in one of the world’s most captivating and welcoming environments. Whether you need a mortgage or can buy outright, we can help you find the real estate that fits your needs.
Reach out to MCR Bahamas today, and let us be your guide in turning your investment dreams into everyday reality. Your venture into the realm of luxury Bahamas real estate begins right here.
Connect with MCR Bahamas now to initiate your investment journey.