Last updated: February 2026 · Verified against IRS, FinCEN, and Bahamas Immigration sources
Bahamas Permanent Residency for American Investors
US citizens who purchase Bahamas real estate valued at $1,000,000 or more can apply for Economic Permanent Residency (EPR). EPR grants the right to reside in The Bahamas indefinitely. No visa needed to visit - just a valid US passport and a 45-minute flight from Miami. Zero Bahamas income tax, zero capital gains tax, zero inheritance tax. The Bahamian Dollar is pegged 1:1 to the US Dollar, eliminating currency risk entirely. Spouse and dependents included.
Glenn Ferguson handles both the property purchase and EPR application - one relationship from property search through residency approval. He coordinates with your US CPA to align closing timelines with IRS reporting requirements (FBAR, FATCA, Schedule E).
Bahamas Residency for Americans - At a Glance
Eligibility: US citizens who purchase Bahamas residential real estate valued at $1,000,000+ (increased January 2025).
Program: Economic Permanent Residency (EPR) - lifetime validity, 10-year property hold, 90 days/year presence requirement.
Funding: Direct bank-to-bank wire transfer from US account to Bahamas attorney escrow. No foreign exchange needed - BSD pegged 1:1 to USD.
US tax: US citizens remain subject to IRS worldwide taxation. FBAR (FinCEN Form 114) if foreign accounts exceed $10,000. FATCA (Form 8938) if foreign financial assets exceed thresholds. Rental income reported on Schedule E.
Bahamas tax: 0% income tax, 0% capital gains, 0% inheritance tax. No US-Bahamas income tax treaty (only a TIEA signed 2002).
Access: No visa needed. Direct flights from Miami (45 min), Fort Lauderdale, New York JFK, Atlanta, Charlotte. Up to 8 months visa-free stay.
Citizenship: Eligible to apply for naturalization after 10 years EPR + 6 years de facto residence (discretionary).
Contact: Glenn Ferguson, BREA #1247, Residency Consultant - handles property purchase and EPR filing. +1-242-395-8495.
Why Bahamas Residency
Why Americans Are Choosing Bahamas Residency
50 Miles from Florida
Nassau is a 45-minute direct flight from Miami, 2.5 hours from New York JFK, and 2 hours from Atlanta. Weekend property visits are routine. Direct flights from Fort Lauderdale, Charlotte, Dallas, and other major hubs.
Zero Currency Risk
The Bahamian Dollar (BSD) is pegged 1:1 to the US Dollar. All property transactions, bank accounts, and daily expenses are effectively in USD. No foreign exchange fees, no conversion losses, no hedging required.
0% Bahamas Income Tax
No personal income tax, no corporate tax, no capital gains tax, no dividend tax, no inheritance tax, no wealth tax. Rental income from your Bahamas property is untaxed by The Bahamas government.
Full Freehold Ownership
Foreign nationals purchase property with identical freehold rights as Bahamian citizens under the International Persons Landholding Act. No leasehold, no time limit, no foreign ownership restrictions on residential real estate.
English Common Law
Legal system based on English common law - familiar to US attorneys. Strong property rights, transparent land registry, and established conveyancing procedures. Title insurance is available and recommended.
Lifetime Residency
EPR remains valid for life unless revoked. Includes spouse and dependent children under 18. File a simple confirmation every 10 years. Citizenship pathway available after 10 years of permanent residency.
"Americans are my largest client group by far. The proximity makes it practical - I have clients who fly in from Miami on a Friday morning, view three or four properties, and are back home for dinner. The 1:1 dollar peg means the price you see is the price you pay, no surprises."
Getting Here
Bahamas Access for Americans
No visa, no hassle: Present your valid US passport at Bahamas immigration. You receive a stamp permitting up to 8 months stay. No visa application, no advance approval, no landing fees. This applies to both tourist visits and property viewing trips. Glenn arranges property viewings around your travel schedule - most American clients spend 2-3 days in Nassau.
US Preclearance: Nassau's Lynden Pindling International Airport (NAS) is one of the few international airports with US Customs and Border Protection preclearance. You complete US immigration formalities in Nassau before departure, meaning you arrive at your US destination as a domestic passenger - no immigration lines, no customs queues.
After EPR approval: Once Economic Permanent Residency is granted, you receive a Certificate of Permanent Residence allowing unrestricted entry and exit. No time-of-stay limitations. Your US passport remains your primary travel document.
"I've had clients fly in on a 7 AM American Airlines flight from Miami, view properties all day, have dinner at Albany, and take the 7 PM flight home. The US preclearance at Nassau airport is a huge perk - when you land back in the US, you walk straight out. No other Caribbean destination offers that kind of convenience."
Economic Permanent Residency
The EPR Program - Complete Details
What EPR provides: The right to reside in The Bahamas indefinitely, open local bank accounts, and enter and exit freely. EPR does not include the right to work - a separate work permit is required for employment or business operations. However, EPR holders can invest in businesses, receive passive income (rental, dividends, interest), and manage their investment portfolio without restriction.
Family inclusion: Spouse and dependent children under 18 can be endorsed on the EPR certificate for $300 per person. An endorsement for a dependent remains valid until they cease to be a dependent. Note: under current Bahamian law, if the EPR holder is female, she cannot apply to endorse her husband - this is a gender-specific restriction in the existing legislation.
Maintaining EPR: The property must be held for a minimum of 10 years. The EPR holder must file a declaration every 10 years confirming no material changes. The property purchase must be completed (title transferred) before the EPR application can be submitted. Selling the property within 10 years may result in revocation of EPR status.
Investment options: EPR can be obtained through purchase of residential real estate ($1,000,000+) or through Central Bank Zero-Coupon Bonds ($1,000,000+). The vast majority of American investors choose real estate for the combined benefits of residency, property appreciation, and rental income.
| EPR Cost Component | Amount |
|---|---|
| Government fee (if approved) | $20,000 |
| Spouse endorsement | $300 |
| Each dependent child endorsement | $300 |
| Legal fees (attorney) | Typically 1-2.5% of property value |
| VAT on conveyance (buyer share) | ~5% of property value |
| Title insurance | ~0.5-1% of property value |
| Annual property tax | 1% on value above $500K (owner-occupied) |
IRS Compliance
US Tax Obligations for Bahamas Property Owners
FBAR - FinCEN Form 114: If you hold a Bahamian bank account (even for receiving rental income) and the aggregate balance of all your foreign financial accounts exceeds $10,000 at any point during the calendar year, you must file an FBAR electronically with FinCEN by April 15, with an automatic extension to October 15. FBAR penalties for non-willful violations can reach $10,000 per violation; willful violations carry penalties of up to 50% of the account balance.
FATCA - Form 8938: US taxpayers living abroad must report specified foreign financial assets on Form 8938 if they exceed $200,000 at year-end (single) or $400,000 (married filing jointly). Foreign bank accounts, investment accounts, and interests in foreign entities are reportable. Directly owned foreign real estate is not itself a specified foreign financial asset, but bank accounts holding rental proceeds and sale proceeds are.
Rental income - Schedule E: Rental income earned from your Bahamas property must be reported on Schedule E of your US tax return. You can deduct allowable expenses including property management fees, maintenance, insurance, property taxes, depreciation, and travel costs related to managing the property. Since The Bahamas charges no income tax on rental income, there is no foreign tax credit to claim against it.
Capital gains on sale: When you eventually sell your Bahamas property, any profit is subject to US capital gains tax. Long-term capital gains rates (for property held over one year) are 0%, 15%, or 20% depending on your taxable income. The 3.8% Net Investment Income Tax (NIIT) may also apply if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). Since The Bahamas charges no capital gains tax, there is no foreign tax credit offset.
FEIE ($132,900 for 2026): If you relocate to The Bahamas and earn income abroad, the Foreign Earned Income Exclusion allows you to exclude up to $132,900 of foreign earned income for tax year 2026 ($130,000 for 2025). You must meet either the Physical Presence Test (330 days abroad in a 12-month period) or the Bona Fide Residence Test. FEIE applies only to earned income - not rental income, dividends, or capital gains.
Estate tax: Bahamas property owned by US citizens is included in your US taxable estate. The 2026 federal estate tax exemption is $15,000,000 per individual. For estates below this threshold, the Bahamas property has no estate tax impact. The Bahamas charges no inheritance tax or estate duty.
This page provides general information only and is not tax or legal advice. US tax law is complex and subject to legislative change. Always consult a qualified US CPA or tax attorney specializing in expatriate tax before purchasing overseas property. Glenn Ferguson is not a tax advisor.
Ready to Explore Bahamas Residency?
Glenn identifies qualifying properties and manages the full EPR process.
Funding Your Purchase
Funding from the US - The Simplest Process
How the wire transfer works: Once you sign the Sale and Purchase Agreement, Glenn's coordinating attorney provides escrow account details at a major Bahamian bank. You instruct your US bank to send an international wire transfer in USD. The funds arrive in 1-2 business days. Most major US banks (Chase, Bank of America, Wells Fargo, Citi, Schwab) process international wires routinely. Wire fees typically range from $25-$50 for the outgoing transfer.
No foreign exchange needed: Because the BSD is pegged at parity to the US Dollar, the amount you send is the amount that arrives. A $1,500,000 wire from your US account lands as $1,500,000 BSD in the Bahamian escrow. No conversion spread, no FX fees, no hedging costs. This is a significant advantage over purchasing property in Europe, Asia, or other Caribbean jurisdictions where currency fluctuations can add 2-5% to transaction costs.
No US government approvals: Unlike investors from India (who must comply with RBI remittance limits), China (SAFE approval), or other countries with capital controls, American buyers face no regulatory barriers to transferring funds overseas for property purchase. There is no dollar limit, no government form to file before the transfer, and no waiting period. The Bahamas is not subject to OFAC sanctions or restrictions.
Post-purchase banking: Most EPR investors open a Bahamian bank account to receive rental income, pay property expenses, and manage local transactions. Major Bahamian banks include Royal Bank of Canada (Bahamas), CIBC FirstCaribbean, and Scotiabank. Account opening typically requires your passport, proof of address, a reference letter from your US bank, and your EPR certificate or property ownership documents. Remember: Bahamian bank accounts trigger FBAR reporting if aggregate foreign account balances exceed $10,000.
"I tell my American clients: if you've ever wired money for a US real estate closing, the Bahamas process is identical - except you don't need to worry about exchange rates. Wire goes out Monday, lands Tuesday, and it's the same dollar amount on both ends. I've had closings completed in under 60 days from first viewing because the funding is so straightforward."
Tax Comparison
United States vs. Bahamas Tax Environment
| Tax Category | United States (Federal) | The Bahamas |
|---|---|---|
| Personal income tax | 10-37% (progressive brackets) | 0% - no personal income tax |
| Capital gains tax (long-term) | 0%, 15%, or 20% + 3.8% NIIT | 0% - no capital gains tax |
| Corporate tax | 21% flat rate | 0% - no corporate tax |
| Dividend / interest tax | Qualified dividends: 0-20% | 0% - no withholding |
| Inheritance / estate tax | 40% above $15M exemption (2026) | 0% - no estate duty |
| Wealth / net worth tax | None (federal) | 0% - no wealth tax |
| Property tax | Varies by state/county (0.3-2.5%+) | 1% on value above $500,000 (owner-occupied) |
| Sales tax / VAT | Varies by state (0-10.25%) | 10% VAT (standard rate) |
| State income tax (additional) | 0-13.3% depending on state | No state/local equivalent |
| Currency | US Dollar (USD) | BSD pegged 1:1 to USD |
Practical impact for Americans: If you earn $50,000 per year in rental income from a Bahamas property, The Bahamas taxes that income at 0%. You report it on your US tax return (Schedule E) and pay US federal and possibly state income tax. Compare this to owning rental property in, say, California or New York, where you would pay both federal and state income tax on the same rental income. The Bahamas effectively eliminates one layer of taxation.
State tax planning: Americans who establish Bahamas EPR and spend significant time there may benefit from changing their US state of domicile to a no-income-tax state (Florida, Texas, Nevada, Wyoming, etc.) before or alongside the move. This eliminates state-level taxation on worldwide income. Consult a US tax advisor experienced in domicile planning.
"Many of my American clients are based in high-tax states - New York, California, New Jersey, Connecticut. For them, the Bahamas tax environment is a significant motivator alongside the lifestyle. I connect you with US CPAs who specialize in cross-border tax planning so you can structure everything correctly from day one."
Qualifying Properties
EPR-Qualifying Properties for American Investors
Luxury Condos
Beachfront condominiums in Nassau, Cable Beach, and Paradise Island. Turnkey, professionally managed, optional rental programs. From ~$1M-$11M+. Ideal for Americans who want rental income between visits.
Gated Community Homes
Single-family homes in exclusive gated communities like Ocean Club Estates, Albany, Lyford Cay, and Old Fort Bay. From ~$2M-$30M+. Maximum privacy, marina access, golf, and world-class amenities.
Beachfront Villas
Standalone beachfront or waterfront villas across New Providence, Paradise Island, and the Out Islands. From ~$1M-$20M+. Direct beach access, private docks, and custom construction options available.
Featured communities: Ocean Club Estates on Paradise Island offers ultra-private estate living with marina and golf. Albany on South Ocean delivers a resort-caliber lifestyle with a deepwater marina and three miles of private beach. Aqualina Cable Beach is a new 27-unit luxury tower adjacent to Baha Mar Resort, with all units exceeding the EPR threshold and an optional rental program.
Investment performance: Nassau luxury real estate has delivered consistent appreciation over the past decade, supported by limited buildable land, sustained international demand, and major infrastructure investment including the $4.2 billion Baha Mar development. Glenn provides actual rental yield data, recent comparable sales, HOA fee schedules, and developer track records for every property he recommends.
"For Americans visiting 4-8 times a year - which is typical given the proximity from the East Coast - I recommend managed condos with proven rental programs in Nassau or Cable Beach. You use the property when you're here, and it generates income when you're not. I provide actual rental yield data, not projections, so you know exactly what to expect."
Long-Term Pathway
From EPR to Bahamas Citizenship
Naturalization requirements: 10 years of Economic Permanent Residency with at least 6 years of de facto physical residence in The Bahamas. The application is submitted to the Department of Immigration. Citizenship is granted at the discretion of the government - it is not automatic even if all formal criteria are met.
Dual citizenship considerations: The Bahamas does not formally recognize dual citizenship. If granted Bahamian citizenship, you may be asked to renounce your US citizenship. For most Americans, this is a significant consideration. Renouncing US citizenship involves IRS exit tax provisions under IRC Section 877A, including the mark-to-market deemed sale of worldwide assets. Consult both a US immigration attorney and a US tax attorney before pursuing this path.
Alternative: retain EPR indefinitely. The majority of American investors choose to maintain EPR without pursuing Bahamian citizenship. EPR provides all the practical benefits of Bahamas residency - tax-neutral environment for Bahamas-source income, banking access, free entry and exit, 1:1 USD currency - without any impact on US citizenship status or tax obligations.
Renouncing US citizenship triggers the IRS exit tax and has irreversible consequences. Glenn strongly recommends consulting a US immigration attorney and US tax attorney experienced in expatriation before considering this step. Most American clients maintain EPR indefinitely.
Step-by-Step Process
How Americans Obtain Bahamas Residency
Contact Glenn
Discuss goals, budget, and timeline. Receive EPR-qualifying property options with pricing, rental yield data, and comparable analysis across Nassau, Paradise Island, and Cable Beach.
Plan Tax Strategy
Work with your US CPA on FBAR, FATCA, FEIE, and state domicile implications. Glenn connects you with Bahamas-experienced US tax advisors if needed.
Visit Nassau
Glenn arranges viewings, attorney introductions, and area tours. Direct flights from Miami (45 min), Fort Lauderdale, New York JFK, Atlanta. No visa needed - just your US passport.
Reserve & Sign SPA
Glenn coordinates offer, negotiation, and Sale and Purchase Agreement. Wire deposit to Bahamas attorney escrow. No foreign exchange needed - BSD pegged 1:1 to USD.
Wire Purchase Funds
Direct bank-to-bank wire transfer from your US account. Simple, familiar process - no foreign exchange, no regulatory hurdles, no government approvals needed for the transfer.
Close & Register
Attorney conducts title search, prepares conveyance with correct ownership structure. Pay VAT on conveyance (~5%), legal fees, stamp duty. Property registered with Registrar General.
File EPR
Glenn files your Economic Permanent Residency application with the Department of Immigration. Proof of property ownership required. $20,000 government fee plus $300 per dependent.
Receive Certificate
EPR certificate issued. Spouse and dependents endorsed. Enter and exit The Bahamas freely. Set up FBAR and FATCA reporting for any Bahamian bank accounts with your US CPA.
"For Americans, the funding process is the simplest of any nationality I work with. You wire dollars to a Bahamian escrow account and receive dollars' worth of property - no foreign exchange, no regulatory approvals, no multi-year funding plans. I've closed transactions where the entire process from first viewing to title registration took under 60 days. One relationship from first call through residency certificate."
Enquire Now
Bahamas Residency Enquiry for American Investors
Tell Glenn your requirements - investment budget, residency goals, family size, timeline - and receive a personalized property and residency roadmap.
Keep Reading
Related Bahamas Guides
Residency by Investment
The complete Bahamas EPR guide - all nationalities. $1M threshold, application process, qualifying investments.
Read the GuideComplete Buying Guide
Step-by-step process, costs, taxes, and island comparison for all foreign buyers.
Read the GuideCan a Foreigner Buy?
Foreign ownership rights, permits, and the complete process for international buyers.
Read the GuideOcean Club Estates
Ultra-luxury gated community on Paradise Island. Marina, golf, estate homes from $5M+.
View Community2026 Market Report
Island-by-island pricing data, transaction volumes, and Glenn's market forecast.
Read the ReportBrowse All Listings
Live Bahamas MLS listings plus Glenn's off-market inventory across all islands.
Browse Listings
Frequently Asked Questions
American Investors Bahamas Residency FAQ
Can US citizens get permanent residency in The Bahamas?
Do Americans still pay US taxes if they get Bahamas residency?
What IRS reporting is required for a Bahamas property?
Do US citizens need a visa to visit The Bahamas?
What are the EPR government fees?
Can Bahamas EPR lead to citizenship for Americans?
Does EPR grant the right to work in The Bahamas?
How do I start the Bahamas residency process from the US?
Your Residency Consultant
About Glenn Ferguson
Glenn Ferguson
BREA Licensed #1247 · Bahamas MLS · Residency Consultant · 24+ Years
Glenn Ferguson is a licensed Bahamas real estate agent (BREA #1247) and authorized residency consultant based in Nassau, New Providence. Over 24 years, he has guided foreign buyers through property acquisition and residency applications across all major Bahamas communities. Americans represent Glenn's largest client group, drawn by the proximity (50 miles from Florida), the 1:1 USD currency peg, and the straightforward wire transfer process. Glenn manages the entire journey from identifying EPR-qualifying properties through attorney coordination, closing, and EPR filing with the Department of Immigration. He works alongside your US CPA to ensure IRS reporting requirements (FBAR, FATCA, Schedule E) are addressed from the outset. Glenn holds WPIC wedding planning certification and is a licensed Marriage Officer, reflecting his deep integration into Bahamas professional life.
View Glenn's full profile and credentialsReady for Bahamas Residency?
Glenn Ferguson - EPR-qualifying properties, IRS-aligned planning, and full residency application management from the US to Nassau.
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