Last updated: February 2026 - Verified against CRA, Bahamas Immigration, and Canadian Department of Finance sources
Bahamas Permanent Residency for Canadian Investors
Canadian 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. Canadians enjoy 8-month visa-free entry, direct flights from Toronto in under 3.5 hours, and a tax environment with zero income tax, zero capital gains tax, and zero inheritance tax. Spouse and dependents included.
Glenn Ferguson handles both the property purchase and EPR application. He works with your Canadian cross-border accountant to ensure CRA compliance on T1135 reporting, departure tax planning, and capital gains structuring.
Bahamas Residency for Canadian Investors - At a Glance
Eligibility: Canadian citizens who purchase Bahamas real estate valued at $1,000,000+ (increased January 1, 2025).
Program: Economic Permanent Residency (EPR) - lifetime validity, 10-year property hold, 90 days/year presence.
Visa entry: Canadians enter visa-free for up to 8 months. Direct flights from Toronto, Montreal, Ottawa, Calgary, Halifax.
CRA reporting: Form T1135 required if Bahamas property is rented for profit and total specified foreign property exceeds CAD $100,000. Personal-use vacation homes are excluded.
Capital gains: Inclusion rate remains at 50% (proposed increase to 66.67% cancelled March 21, 2025). Zero capital gains in Bahamas.
Tax advantage: Bahamas charges 0% income tax, 0% capital gains, 0% inheritance tax. Canada-Bahamas TIEA in force since 2011.
Citizenship: Eligible to apply for naturalisation 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 Canadians choose The Bahamas
Why Canadian Investors Are Choosing Bahamas Real Estate
0% Income Tax
The Bahamas imposes no personal income tax, no corporate income tax, and no capital gains tax under the Revenue Administration Act. Canadian investors who establish Bahamas residency and cease Canadian tax residency can eliminate the CRA's worldwide income taxation, which currently reaches up to 53.53% at the top combined federal-provincial rate in Ontario.
CAD-USD Parity Play
The Bahamian Dollar (BSD) is pegged 1:1 to the US Dollar by the Central Bank of The Bahamas, a monetary policy maintained since 1973. For Canadian investors, Bahamas real estate is a USD-denominated hard asset that serves as a natural hedge against Canadian Dollar depreciation, which has averaged 25-30% weakness against the USD over the past decade.
Freehold Ownership
Canadians can own property outright with full freehold title under Bahamas common law. The Bahamas International Persons Landholding Act permits unrestricted foreign ownership of residential property on parcels that are owner-occupied. Property rights are identical to those held by Bahamian citizens, with title registered at the Bahamas Registrar General's Office.
Lifetime EPR
Economic Permanent Residency (EPR) through $1M+ real estate investment is valid for life unless revoked by the Minister of Immigration. Your spouse and dependent children under 18 are endorsed on your EPR certificate at just $300 per person, as administered by the Bahamas Department of Immigration.
English Common Law
The Bahamas operates under English common law, derived from the same legal tradition as Canada's common-law provinces. Property transactions follow established Torrens-style conveyancing procedures. The Supreme Court of The Bahamas and the Privy Council in London provide judicial oversight of property disputes.
Under 4 Hours Away
Air Canada and WestJet operate direct flights from Toronto Pearson (YYZ), Montreal-Trudeau (YUL), Ottawa (YOW), Calgary (YYC), and Halifax Stanfield (YHZ) to Nassau's Lynden Pindling International Airport (NAS). Toronto to Nassau is 3 hours 20 minutes, closer than Phoenix, Los Angeles, or Cancun.
Canada vs. Bahamas: Tax Comparison for HNI Investors
| Tax Category | Canada (CRA) | The Bahamas |
|---|---|---|
| Personal Income Tax | Up to 53.53% (federal + provincial, Ontario top rate) | 0% |
| Capital Gains Tax | 50% inclusion rate (taxed at marginal rate) | 0% |
| Corporate Income Tax | Up to 26.5% (federal + provincial combined) | 0% |
| Inheritance / Estate Tax | Deemed disposition at death (capital gains triggered) | 0% |
| Dividend Tax | Up to 39.34% (non-eligible dividends, Ontario) | 0% |
| Property Transfer Tax | Varies by province (e.g. Ontario Land Transfer Tax) | ~7-8% (VAT on conveyance + legal fees) |
| Annual Property Tax | Varies by municipality (assessed value based) | 1% on value above $500K (owner-occupied) |
| Wealth / Net Worth Tax | None (but Alternative Minimum Tax applies) | 0% |
| Foreign Income Reporting | T1135 required if specified foreign property exceeds CAD $100K | No worldwide income reporting |
| Tax Treaty Status | Canada-Bahamas TIEA (Tax Information Exchange Agreement) signed June 17, 2010, in force November 16, 2011. Not a full double taxation treaty. | |
Over 24 years in Bahamas real estate, I have worked with more Canadians than any other foreign nationality after Americans. From Toronto business owners to Vancouver tech entrepreneurs to Calgary energy executives, I have guided Canadian buyers through the process. Most are surprised how straightforward it is compared to buying in the US or Europe. The familiarity of common law, the proximity, and the 8-month visa-free stay make The Bahamas the most accessible Caribbean investment for Canadians.
Travel & entry
Getting to The Bahamas from Canada
Passport requirements: Your Canadian passport must be valid for at least 3 months after your return date for direct travel to The Bahamas, or 6 months if transiting through the United States. Most airlines require 6-month validity regardless of routing.
Direct flights: Air Canada, WestJet, and seasonal charter operators fly nonstop from Toronto Pearson (YYZ), Montreal-Trudeau (YUL), Ottawa (YOW), Calgary (YYC), and Halifax (YHZ) to Nassau's Lynden Pindling International Airport (NAS). Toronto to Nassau is approximately 3 hours and 20 minutes.
After EPR is granted: Once you receive Economic Permanent Residency, you can enter and exit The Bahamas freely without any visa or length-of-stay restrictions. You carry your EPR certificate alongside your Canadian passport. This eliminates the 8-month limitation entirely.
Travelling with minors: If a child is travelling with only one parent, a notarised letter of consent from the other parent may be requested by Bahamas immigration.
I typically arrange property viewing trips as 3 to 4-day visits from Toronto or Montreal. Fly down on a Thursday morning direct flight, view properties Thursday afternoon and Friday, review your top picks over the weekend, and fly home Sunday evening. I have had clients from Vancouver do the same trip via a quick Miami connection. The convenience compared to European or Asian property markets is a major reason Canadians keep choosing The Bahamas.
EPR program
The EPR Program - Complete Details
What qualifies: Residential real estate in The Bahamas valued at $1,000,000 or more. The investment can be a single property or multiple properties totalling the threshold. Qualifying alternatives include Central Bank of The Bahamas zero-coupon bonds, though real estate is the preferred route for most Canadian investors.
Hold period: The property must be maintained for at least 10 years from the date of EPR approval. Selling before the 10-year mark can result in revocation of your residency status.
Presence requirement: EPR holders must spend a minimum of 90 days per year in The Bahamas. This is cumulative across the year and does not need to be consecutive.
Family inclusion: Your spouse and dependent children under 18 can be endorsed on your EPR certificate. The endorsement fee is $300 per person. Children who turn 18 need to apply separately.
Work rights: EPR does not include the right to work or operate a business. A separate work permit is required for employment. However, EPR holders can open local bank accounts, access medical services, and enjoy all other residency privileges.
| EPR Cost Item | Amount (USD/BSD) |
|---|---|
| Minimum property investment | $1,000,000 |
| EPR government fee | $20,000 |
| Spouse endorsement | $300 |
| Each dependent child | $300 |
| VAT on conveyance (buyer share) | ~5% of property value |
| Legal fees | 1 - 2.5% of property value |
| Property tax (owner-occupied, above $500K) | 1% annually |
In my experience filing EPR applications for Canadian clients over the past decade, processing takes approximately 3 to 4 months when your documentation is complete and properly prepared. I handle the entire filing, from compiling your financial references and police clearance to submitting the application package to Bahamas Immigration. One relationship from property search through residency approval.
CRA reporting
CRA Form T1135 - Foreign Property Reporting
Personal-use exemption: If your Bahamas property is used primarily (more than 50%) for personal use and enjoyment, the CRA considers it personal-use property. Personal-use property is not "specified foreign property" and does not need to be reported on Form T1135. This is a question of fact determined case by case.
When T1135 is required: If you rent out your Bahamas property for profit more than 50% of the time, it becomes specified foreign property. You must file T1135 if the total cost of all your specified foreign property exceeds CAD $100,000 at any point during the tax year. The cost amount is typically the adjusted cost base, not fair market value.
Simplified vs. detailed reporting: If your total specified foreign property cost is between CAD $100,000 and CAD $250,000, you can use Part A (simplified reporting) which requires only checking boxes for property types and listing the top three countries. Above CAD $250,000, Part B (detailed reporting) requires listing each property separately with maximum cost, year-end cost, and income.
Filing deadline: T1135 is due on the same date as your income tax return. April 30 for individuals (June 15 for self-employed, but tax owing is still due April 30).
Late filing penalties are $25 per day, minimum $100, maximum $2,500 per year. If the CRA deems the failure grossly negligent, penalties can reach $500 per month up to $12,000 per year. The CRA can also extend the reassessment period by 3 additional years. Do not assume your accountant has filed it - recent Tax Court decisions (Horner v. The King, 2025 TCC 23) confirm the obligation rests squarely with the taxpayer. Verify every year.
Most of my Canadian clients purchase in The Bahamas primarily for personal use - a winter home, a retirement base, a family getaway. In that scenario, the T1135 reporting requirement typically does not apply. However, I always recommend consulting a Canadian cross-border tax professional before purchase to structure the ownership correctly from day one. I work closely with several Canadian accountants who specialise in Bahamas property ownership and can connect you directly.
Tax planning
Departure Tax, Capital Gains & Canadian Tax Obligations
Departure tax explained: When you emigrate from Canada, the CRA treats you as having sold most of your worldwide assets at fair market value on the day you depart. Any accrued capital gains become taxable. This applies to non-registered investment accounts, shares of private corporations, and real estate outside Canada (but not Canadian real estate, RRSPs, TFSAs, or pension plans).
Capital gains inclusion rate: The inclusion rate is 50% for 2025 and 2026. The controversial proposal to increase the rate to 66.67% for gains above $250,000 was first proposed in the April 2024 budget, deferred to January 1, 2026 on January 31, 2025, and then cancelled outright by Prime Minister Carney on March 21, 2025. The Lifetime Capital Gains Exemption (LCGE) was increased to $1,250,000 and remains in effect.
Deferral option: You can elect to defer departure tax payment by filing Form T1244. The deferred tax becomes payable when you actually sell the asset or if you return to Canada. Security may be required for liabilities above CAD $16,500.
Bahamas as second home (not emigrating): Many Canadian investors purchase Bahamas property without ceasing Canadian residency. In this scenario, there is no departure tax. You continue filing Canadian returns on worldwide income. The Bahamas property simply becomes a personal-use or investment asset reported according to standard CRA rules.
Canada-Bahamas TIEA: Canada and The Bahamas signed a Tax Information Exchange Agreement on June 17, 2010 (in force since November 16, 2011). This is not a full double taxation treaty but provides for mutual exchange of tax information between the CRA and Bahamas authorities. Because The Bahamas imposes no income tax, double taxation does not arise in practice.
No Bahamas income tax on rental income: If you rent your Bahamas property, rental income is not taxed in The Bahamas. However, as a Canadian tax resident, you must report worldwide income including Bahamas rental income on your Canadian return. As a non-resident of Canada who has emigrated, Bahamas rental income is not subject to Canadian tax since it is not Canadian-sourced.
This guide is for informational purposes only and does not constitute tax or legal advice. Tax rules for Canadian expatriates are complex and depend on individual circumstances. Consult a qualified Canadian cross-border tax professional before making residency or investment decisions. Glenn Ferguson is a real estate agent and residency consultant, not a tax advisor.
Qualifying properties
Properties That Qualify for Canadian Investor EPR
Luxury Condominiums
Turn-key units in developments like Aqualina at Cable Beach (developed by Sterling Global Financial), Goldwynn Residences on West Bay Street, and Baha Mar Residences (operated by Rosewood, SLS, and Grand Hyatt). Many Canadian buyers from Toronto, Vancouver, and Calgary start here for lower maintenance and built-in rental management while they are in Canada.
Gated Community Homes
Ocean Club Estates on Paradise Island (the original Four Seasons community), Albany (co-founded by Tiger Woods and Justin Timberlake), Lyford Cay (Nassau's most established enclave since 1959), and Old Fort Bay offer secure, family-friendly environments with world-class marina, golf, and beach club amenities. Popular with Canadian families planning extended winter stays of 3 to 6 months.
Beachfront Villas
Standalone waterfront homes on Cable Beach, Eastern Road, and the Out Islands (including Harbour Island, Exuma, and Eleuthera). These freehold properties often appreciate most strongly according to the Bahamas Real Estate Association (BREA) market data, and appeal to Canadian buyers seeking privacy and direct Caribbean beach access.
For Canadian buyers who plan to split time between Canada and The Bahamas, I typically recommend properties with on-site management. Developments like Aqualina at Cable Beach, Goldwynn, and the Baha Mar Residences allow you to lock up and leave knowing your home is maintained. I have helped Canadian clients in Albany and Ocean Club Estates structure their ownership for both personal use and occasional rental income. After 24 years in this market, I know which properties perform well for the Canadian snowbird lifestyle.
Beyond EPR
Citizenship Pathway for Canadians
Requirements: You must hold Economic Permanent Residency for a minimum of 10 consecutive years. During that period, you must have been a de facto resident in The Bahamas for at least 6 years. The naturalisation application is submitted to the Ministry of Immigration and assessed on the merits.
Dual citizenship considerations: The Bahamas does not formally recognise dual citizenship, meaning you would technically be required to renounce your Canadian citizenship upon naturalisation. However, enforcement of this requirement has historically varied. Many Canadian permanent residents choose to maintain EPR indefinitely rather than pursue citizenship, as EPR provides the primary benefits of residing in The Bahamas without raising dual citizenship complications.
Canadian citizenship renunciation: Canada does permit voluntary renunciation, but it is an irrevocable step with significant consequences for access to Canadian social services, healthcare, CPP, OAS, and the right to live and work in Canada. Most Canadian investors I work with prefer the EPR route long term.
Step by step
How Canadian Investors Obtain Bahamas Residency
Contact Glenn
Discuss your budget, goals, timeline, and preferred property type with Glenn Ferguson (BREA #1247). Get connected with a Canadian cross-border tax advisor specialising in CRA departure tax and T1135 structuring.
Plan Your Tax Structure
Work with your Canadian CPA or tax lawyer on departure tax planning under section 128.1 of the Income Tax Act (Canada), T1135 personal-use exemption structuring, capital gains crystallisation strategy, and Form T1161 (List of Properties by an Emigrant of Canada) if total FMV exceeds CAD $25,000.
Visit Nassau
Fly direct from Toronto Pearson (YYZ) in 3 hours 20 minutes. Glenn arranges 2 to 3 days of curated property viewings across qualifying EPR-eligible developments in New Providence, Paradise Island, and Cable Beach.
Reserve & Sign SPA
Place a deposit (typically 10%) and sign the Sale and Purchase Agreement (SPA), a legally binding contract under Bahamas common law. Glenn coordinates with your Bahamian attorney for title search at the Registrar General's Office.
Transfer Funds
Wire purchase funds from your Canadian bank (RBC, TD, Scotiabank, BMO, and CIBC all handle Bahamas transfers). The Bahamian Dollar is pegged 1:1 to USD by the Central Bank of The Bahamas. Title search and due diligence proceed in parallel.
Close & Register
Complete the conveyance at your Bahamian attorney's office, pay VAT on conveyance (approximately 10% total, split between buyer and seller) and legal fees. Property title is registered with the Bahamas Registry of Records under the Registration of Records Act.
File EPR Application
Glenn compiles your financial references (bank statements, net worth declaration), Royal Bahamas Police Force clearance certificate, medical certificate, and property documentation including the executed SPA and conveyance deed. Application is submitted to the Bahamas Department of Immigration.
Receive EPR Certificate
Approval typically takes 3 to 4 months from the Bahamas Department of Immigration. Pay the $20,000 government fee plus $300 per dependent endorsement. Your EPR certificate is valid for life, and you may enter and exit The Bahamas freely with no visa restrictions.
Timing matters for Canadians. Many of my Toronto and Montreal clients align their Bahamas purchase with the beginning of a new calendar year for cleaner CRA reporting. If you are considering emigrating, the timing of your departure date can have significant capital gains implications. I coordinate with your Canadian tax advisor to ensure the property closing date and EPR filing align with your broader financial plan. Over the years, I have refined this process to be as seamless as possible for cross-border buyers.
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Related guides
More Resources for Canadian Investors
Residency by Investment Guide
Complete guide to all Bahamas residency options for foreign investors.
Read Guide →Complete Buying Guide
Step-by-step process for purchasing Bahamas real estate as a foreigner.
Read Guide →Can a Foreigner Buy?
Legal requirements, property rights, and approval process for foreign buyers.
Read Guide →Aqualina at Cable Beach
Luxury beachfront condos from $1.2M. On-site management for absentee owners.
View Property →2026 Market Report
Nassau price trends, rental yields, and investment outlook for the year ahead.
Read Report →Browse All Listings
Search all homes, condos, and land for sale in Nassau and the islands.
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Frequently asked questions
Canadian Investor FAQ
Can Canadian citizens get permanent residency in The Bahamas?
Do Canadians need a visa to visit The Bahamas?
Do I need to file CRA Form T1135 for Bahamas property?
What are the EPR government fees?
What happens to my Canadian taxes if I relocate?
Is there a tax treaty between Canada and The Bahamas?
Can Bahamas EPR lead to citizenship for Canadians?
How do I start the Bahamas residency process from Canada?
Glenn Ferguson
BREA #1247 - Bahamas MLS - Residency Consultant - WPIC-Certified Wedding Planner - Licensed Marriage Officer
Glenn Ferguson is a BREA-licensed Bahamas real estate agent (#1247) and authorised residency consultant with over 24 years of experience helping foreign buyers purchase property and obtain residency in The Bahamas. He has guided Canadian investors from Toronto, Montreal, Vancouver, Calgary, and Ottawa through property acquisition and EPR applications. Glenn's expertise includes cross-border transaction coordination with Canadian accountants and lawyers, T1135 ownership structuring for vacation and investment properties, and departure tax timing for clients considering permanent relocation. He holds WPIC wedding planner certification and is a Licensed Marriage Officer in The Bahamas.
View Full Profile →Ready for Bahamas Residency?
Glenn Ferguson helps Canadian investors buy qualifying property and file EPR applications. One call to start.