Can Bahamas EPR lead to US citizenship renunciation?

After 10 years EPR + 6 years de facto residence, you may apply for Bahamas citizenship (discretionary). The Bahamas does not recognize dual citizenship. Renouncing US citizenship triggers the IRC Section 877A exit tax — mark-to-market deemed sale of worldwide assets. Most Americans maintain EPR indefinitely.

How do I fund a Bahamas property purchase from the US?

Direct bank-to-bank wire transfer in USD. The BSD is pegged 1:1 to the US Dollar — no foreign exchange needed. No OFAC restrictions. No US government approvals required. Most major US banks process Bahamas wires routinely. Wire fees: $25-$50.

What are closing costs for Americans buying in The Bahamas?

Budget 8-10.5% of purchase price. VAT on conveyance: 10% total (split ~50/50, so ~5% buyer). Attorney fees: 2.5%-3.5% (Bar Association raised minimum to 3.5% for registered land, January 2026). Buyer pays zero agent commission (seller pays 6% + VAT).

Does EPR include the right to work in The Bahamas?

Standard $20,000 EPR does not include work rights. The $25,000 EPR option grants the right to engage in gainful occupation in your own business. A separate work permit is required for employment under either tier. EPR holders can receive passive income without restriction.

How do I start the Bahamas residency process from the US?

WhatsApp Glenn Ferguson at +1-242-395-8495. BREA Licensed #1247, Bahamas MLS Member, Residency Consultant. 24+ years helping American investors. Glenn identifies qualifying properties, coordinates purchase, files EPR, and works with your US CPA. Miami to Nassau: 45 minutes.

Bahamas Residency for American Investors - EPR Through Real Estate, Tax Planning Guide

Q: Can US citizens get permanent residency in The Bahamas?

Yes. US citizens who purchase Bahamas real estate valued at $1,000,000 or more can apply for Economic Permanent Residency (EPR). EPR grants lifetime residency. Zero Bahamas income tax, capital gains tax, and inheritance tax. Spouse and dependents under 18 included ($300 each). Government fee: $20,000 (or $25,000 with work rights). Contact Glenn Ferguson (BREA #1247) at 1-242-395-8495.

Q: What are the EPR government fees?

$20,000 for primary applicant (without work rights) or $25,000 (with right to work in own business). Plus $300 per endorsed family member. Non-refundable $100 processing fee at submission. All costs in USD — BSD pegged 1:1.

Q: What is the FEIE for Americans in The Bahamas?

The Foreign Earned Income Exclusion for 2026 is $132,900 ($130,000 for 2025). You must meet either the Physical Presence Test (330 days abroad) or Bona Fide Residence Test. FEIE applies only to earned income — not rental income, dividends, or capital gains.

Why Americans choose The Bahamas

Why American Investors Are Choosing Bahamas Real Estate

The Bahamas is the closest offshore jurisdiction to the United States, just 50 miles from the Florida coast, and offers permanent residency through real estate investment in a completely tax-neutral environment. Americans are the largest group of foreign property buyers in The Bahamas, drawn by proximity, a USD-pegged currency eliminating foreign exchange risk, English common law, full freehold ownership rights, and a stable parliamentary democracy. Over 11 million visitors came to The Bahamas in 2024, with direct flights from a dozen US cities.

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 by the Central Bank of The Bahamas since 1973. All property transactions, bank accounts, and daily expenses are effectively in USD. No FX fees, 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 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, established conveyancing. Title insurance available and recommended.

Lifetime Residency

EPR remains valid for life. Includes spouse and dependent children under 18. File a simple confirmation every 10 years. Citizenship pathway available after 10 years of permanent residency.

Glenn's Insight · 24 Years Experience 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

US citizens do not need a visa to visit The Bahamas and can stay up to 8 months with a valid US passport. Nassau is served by direct flights from Miami (45 minutes), Fort Lauderdale (50 minutes), New York JFK (2.5 hours), Atlanta (2.5 hours), Charlotte (2.5 hours), and Dallas (3.5 hours).

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 — you arrive at your US destination as a domestic passenger. No immigration lines, no customs queues.

After EPR approval: Once 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.

Glenn's Insight 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 convenience.

Economic Permanent Residency

The EPR Program — Complete Details for American Applicants

Effective January 1, 2025, the minimum qualifying investment for Economic Permanent Residency (EPR) increased from $750,000 to $1,000,000. EPR grants the right to reside in The Bahamas indefinitely. The property must be held for 10 years. EPR holders must spend at least 90 days per year in The Bahamas (cumulative, not consecutive). Investments of $1,500,000+ receive accelerated consideration.

What EPR provides: The right to reside indefinitely, open local bank accounts, and enter/exit freely. EPR does not automatically include the right to work — a separate work permit is needed for employment. However, the $25,000 EPR option grants the right to engage in gainful occupation in your own business.

Family inclusion: Spouse and dependent children under 18 endorsed on the EPR certificate at $300 per person. Children who turn 18 need to apply separately. Note: under current Bahamian immigration law, the endorsement language refers to the "wife" of the EPR holder — meaning female EPR holders may face limitations endorsing a husband. Consult your Bahamian attorney on this gender-specific restriction.

EPR Cost Item	Amount (USD/BSD)
Minimum property investment	$1,000,000
Accelerated processing threshold	$1,500,000+
EPR government fee (without work rights)	$20,000
EPR government fee (with work rights in own business)	$25,000
Non-refundable processing fee	$100
Spouse endorsement	$300
Each dependent child (under 18)	$300
Processing time	6–18 months

Sources: Bahamas Immigration Department (immigration.gov.bs), Lennox Paton Attorneys (March 2025), Legal 500 Bahamas Real Estate Guide (March 2025), Bahamas Immigration Fee Schedule.

Glenn's Insight 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. I've closed transactions in under 60 days from first viewing because the funding is so straightforward.

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IRS compliance

US Tax Obligations for Bahamas Property Owners

US citizens are taxed on worldwide income regardless of where they live, and Bahamas EPR does not change your IRS obligations. However, since The Bahamas charges zero income tax, there is no double taxation in practice. There is no US-Bahamas income tax treaty — only a Tax Information Exchange Agreement (TIEA) signed January 25, 2002 in Washington, D.C., in force December 31, 2003 (per US Treasury announcement). Under the TIEA, The Bahamas is considered part of the "North American area" for IRS purposes, meaning US taxpayers can deduct expenses for conventions and business meetings held in The Bahamas under standard business expense rules.

FBAR — FinCEN Form 114

If you hold a Bahamian bank account and the aggregate balance of all your foreign financial accounts exceeds $10,000 at any point during the year, you must file an FBAR electronically with FinCEN by April 15 (automatic extension to October 15). Penalties for non-willful violations: up to $10,000 per violation. Willful violations: up to 50% of account balance or $100,000, whichever is greater.

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). For US-based taxpayers: $50,000/$100,000 thresholds. Directly owned foreign real estate is not a specified foreign financial asset, but bank accounts holding rental proceeds are reportable.

Rental Income — Schedule E

Rental income from your Bahamas property must be reported on Schedule E. Deductible expenses include 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.

Capital Gains on Sale

Profit on sale is subject to US capital gains tax. Long-term rates (held over one year): 0%, 15%, or 20% depending on income. The 3.8% Net Investment Income Tax (NIIT) applies if MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). No Bahamas capital gains tax = no foreign tax credit offset.

FEIE — Foreign Earned Income Exclusion

If you relocate to The Bahamas and earn income abroad: $132,900 for 2026 ($130,000 for 2025), per IRS Rev. Proc. 2025-32 announced October 9, 2025. Must meet the Physical Presence Test (330 days abroad) or Bona Fide Residence Test. FEIE applies only to earned income — not rental income, dividends, or capital gains. File Form 2555.

Estate Tax

Bahamas property is included in your US taxable estate. The 2026 federal estate tax exemption is $15,000,000 per individual ($30M for married couples), made permanent by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. No TCJA sunset. The Bahamas charges zero inheritance tax or estate duty. For estates below the $15M threshold, there is no federal estate tax impact.

SALT Deduction — 2025–2029

The OBBBA raised the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for 2025–2029, with a phasedown for incomes above $500,000. This is relevant for Americans in high-tax states (New York, California, New Jersey, Connecticut) considering Bahamas investment as part of broader tax planning. Americans who establish Florida domicile alongside Bahamas EPR eliminate state income tax entirely.

Tax Disclaimer: This page provides general information only and is not tax or legal advice. US tax law is complex and subject to legislative change. Consult a qualified US CPA or tax attorney specializing in expatriate tax before purchasing overseas property. Glenn Ferguson is a real estate agent and residency consultant, not a tax advisor.

Tax comparison

United States vs. Bahamas Tax Environment

Tax Category	United States (Federal)	The Bahamas
Personal Income Tax	10–37% progressive brackets	0%
Capital Gains (LT)	0%, 15%, or 20% + 3.8% NIIT	0%
Corporate Tax	21% flat rate	0%
Dividend / Interest	Qualified: 0–20%	0%
Estate Tax	40% above $15M exemption (2026, OBBBA)	0%
Wealth Tax	None (federal)	0%
Property Tax	Varies by state/county (0.3–2.5%+)	First $300K exempt; 0.625% $300K–$500K; 1% above $500K; cap $120K/yr
Sales Tax / VAT	Varies by state (0–10.25%)	10% VAT
State Income Tax	0–13.3% depending on state	No state equivalent
Currency	US Dollar (USD)	BSD pegged 1:1 to USD

Sources: IRS Rev. Proc. 2025-32 (tax year 2026 adjustments), One Big Beautiful Bill Act (signed July 4, 2025), Bahamas Department of Inland Revenue, Real Property Tax Act (Bahamas), Central Bank of The Bahamas.

Glenn's Insight 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.

Funding your purchase

Funding from the US — The Simplest Process

Americans face the simplest funding process of any foreign buyer group because the BSD is pegged 1:1 to the USD and there are no regulatory approvals or foreign exchange requirements. Wire US Dollars from your American bank directly to a Bahamian attorney's escrow account. Funds arrive in 1–2 business days with zero conversion loss. No OFAC restrictions apply to The Bahamas.

How it works: Sign the Sale and Purchase Agreement. Glenn's coordinating attorney provides escrow account details. You instruct your US bank (Chase, Bank of America, Wells Fargo, Citi, Schwab) to send an international wire in USD. A $1,500,000 wire from your US account lands as $1,500,000 BSD. Wire fees: typically $25–$50.

Post-purchase banking: Most EPR investors open a Bahamian bank account (Royal Bank of Canada Bahamas, CIBC FirstCaribbean, Scotiabank). Requires passport, proof of address, US bank reference, and EPR certificate. Remember: Bahamian accounts trigger FBAR reporting if aggregate foreign balances exceed $10,000.

Transaction costs

Closing Costs for American Buyers

Budget 8–10.5% of purchase price. All in USD — zero currency conversion. The buyer pays zero agent commission (seller pays 6% + VAT).

Cost Item	Amount	Notes
VAT on conveyance	10% total	Typically split 50/50 (~5% buyer share). Foreign buyers pay flat 10%.
Attorney fees	2.5%–3.5%	Bar Association raised minimum to 3.5% for registered land, Jan 2026.
Appraisal	$3,000–$5,000	Required for lender and immigration valuation.
Title insurance (optional)	0.5–1%	Recommended for additional protection.
Agent commission (buyer)	$0	Seller pays 6% + VAT. Buyer agent is free.

Property Tax Schedule (Owner-Occupied)

Assessed Value Band	Rate	Example: $3M Property
First $300,000	Exempt	$0
$300,001 – $500,000	0.625%	$1,250
Above $500,000	1.0%	$25,000
Total annual tax on $3M property		$26,250
Maximum annual cap		$120,000/year

Sources: Bahamas Real Property Tax Act, Department of Inland Revenue, DuPuch Real Estate calculator.

Qualifying investments

EPR-Qualifying Properties for American Investors

Any Bahamas residential real estate valued at $1,000,000+ qualifies for EPR. Americans face no foreign ownership restrictions under the International Persons Landholding Act (parcels under 5 acres, owner-occupied). Properties at $1,500,000+ qualify for accelerated processing.

Luxury Condominiums

Beachfront units in Nassau, Cable Beach, and Paradise Island. Turnkey, professionally managed, optional rental programs. From ~$1M–$11M+. Ideal for Americans wanting rental income between visits.

Gated Community Homes

Ocean Club Estates, Albany, Lyford Cay, and Old Fort Bay. Maximum privacy, marina access, golf, world-class amenities. From ~$2M–$30M+.

Beachfront Villas

Standalone waterfront homes across New Providence, Paradise Island, and Out Islands (Harbour Island, Exuma, Eleuthera). Direct beach access, private docks. From ~$1M–$20M+.

New Developments

Four Seasons Bahamas (50 branded residences, 2027), Aqualina at Cable Beach, GoldWynn Penthouses. Pre-construction pricing frequently meets $1M threshold.

Glenn's Insight 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.

Beyond EPR

From EPR to Bahamas Citizenship

After holding EPR for 10 years with at least 6 years de facto residence, you may apply for Bahamian citizenship through naturalisation. The decision is discretionary. The Bahamas does not recognise dual citizenship — naturalisation may require renouncing US citizenship.

Critical for Americans Renouncing US citizenship triggers the IRC Section 877A exit tax — a mark-to-market deemed sale of worldwide assets. This can result in significant capital gains tax liability. The decision is irrevocable. 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

How Americans Obtain Bahamas Residency

Contact Glenn

Discuss goals, budget, timeline. Receive EPR-qualifying property options with pricing, rental yield data, and comparable analysis.

Plan Tax Strategy

Work with your US CPA on FBAR, FATCA, FEIE, Schedule E, and state domicile implications. Glenn connects you with Bahamas-experienced US tax advisors.

Visit Nassau

Glenn arranges viewings, attorney introductions, area tours. Miami: 45 min. No visa needed — just your US passport.

Reserve & Sign SPA

Place deposit (typically 10%), sign Sale and Purchase Agreement. Wire to attorney escrow. No FX needed — 1:1 USD.

Wire Purchase Funds

Direct bank-to-bank wire from your US account. Simple, familiar. No FX, no regulatory hurdles, no government approvals.

Close & Register

Attorney conducts title search, prepares conveyance. Pay VAT (~5% buyer share) and legal fees (2.5%–3.5%). Title registered at Registry of Records.

File EPR Application

Glenn compiles financial references, police clearance, medical certificate, property documents. Submitted to Immigration with $100 processing fee.

Receive EPR Certificate

Approval typically 6–18 months. Pay $20,000 government fee (or $25,000 with work rights) + $300 per dependent. EPR valid for life.

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Glenn Ferguson

BREA #1247 · Bahamas MLS · Residency Consultant · 24+ Years

BREALicensed Agent

MLSMember

24+Years Experience

EPRConsultant

Americans represent Glenn's largest client group. He manages the entire journey from identifying EPR-qualifying properties through attorney coordination, closing, and EPR filing. He works alongside your US CPA to ensure FBAR, FATCA, and Schedule E compliance from day one.

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Get started

Request an American Investor Consultation

Complete the form below and Glenn will respond within 24 hours with a personalised property shortlist and EPR timeline.

Frequently asked questions

American Investor FAQ

Can US citizens get permanent residency in The Bahamas?

Yes. US citizens who purchase real estate valued at $1,000,000+ can apply for Economic Permanent Residency (EPR). Lifetime validity. Spouse and dependents under 18 included ($300 each). Government fee: $20,000 (or $25,000 with work rights). The property must be held for 10 years with 90 days/year presence. Contact Glenn.

Do Americans still pay US taxes with Bahamas residency?

Yes. The US taxes citizens on worldwide income regardless of residency. Bahamas EPR does not change IRS obligations. However, The Bahamas charges 0% income tax, so there is no double taxation. Americans living abroad may qualify for the FEIE ($132,900 for 2026). FBAR required if foreign accounts exceed $10,000. FATCA Form 8938 for financial assets above thresholds.

What IRS reporting is required for Bahamas property?

FBAR (FinCEN Form 114) if foreign account balances exceed $10,000 at any point. FATCA (Form 8938) if foreign financial assets exceed $200,000/$400,000 thresholds. Rental income on Schedule E. Foreign real estate itself is not reportable under FATCA, but Bahamian bank accounts holding rental proceeds are.

Do US citizens need a visa for The Bahamas?

No. US citizens enter visa-free with a valid passport and can stay up to 8 months. Nassau is 50 miles from Florida — 45-minute flight from Miami. US Customs preclearance at Nassau airport means you arrive back as a domestic passenger. No other Caribbean destination offers this convenience.

What are the EPR government fees?

$20,000 for primary applicant (without work rights) or $25,000 (with right to work in own business). Plus $300 per endorsed family member. Non-refundable $100 processing fee at submission. All costs in USD — BSD pegged 1:1. Example: applicant + spouse + 2 children = $21,000 total.

What is the estate tax impact of Bahamas property?

Bahamas property is included in your US taxable estate. The 2026 federal exemption is $15,000,000 per individual ($30M married), made permanent by the One Big Beautiful Bill Act (OBBBA, July 4, 2025). The Bahamas charges zero inheritance tax. For estates below $15M, there is no federal estate tax impact.

What is the FEIE for Americans in The Bahamas?

Foreign Earned Income Exclusion: $132,900 for 2026 ($130,000 for 2025). Requires Physical Presence Test (330 days abroad) or Bona Fide Residence Test. Applies only to earned income — not rental income, dividends, or capital gains. File Form 2555. Most Bahamas EPR holders derive passive income, so FEIE has limited application unless you work abroad.

What are closing costs for Americans buying Bahamas property?

Budget 8–10.5%. VAT: 10% total (split ~50/50, ~5% buyer). Attorney: 2.5%–3.5% (Bar Association raised minimum to 3.5% for registered land, Jan 2026). Appraisal: $3K–$5K. Title insurance: 0.5–1%. Buyer pays zero agent commission. Plus EPR: $20,000 + $300/dependent.

What taxes do Bahamas permanent residents pay?

Zero income tax, zero capital gains, zero inheritance tax. Annual property tax (owner-occupied): first $300,000 exempt; 0.625% on $300K–$500K; 1% above $500K; capped $120,000/year. Rental income is tax-free locally. VAT 10% at purchase only.

Does EPR include the right to work?

Standard $20,000 EPR does not include work rights. The $25,000 EPR option grants the right to engage in gainful occupation in your own business, per the Bahamas Immigration Fee Schedule. A separate work permit is required for employment under either tier. EPR holders can receive passive income without restriction.

Can Bahamas EPR lead to citizenship for Americans?

After 10 years EPR + 6 years de facto residence, you may apply for naturalisation (discretionary). The Bahamas does not recognise dual citizenship. Renouncing US citizenship triggers the IRC §877A exit tax. Most Americans maintain EPR indefinitely, preserving full US citizenship and Bahamas residency rights.

How do I fund a Bahamas purchase from the US?

Direct bank-to-bank wire in USD. BSD is pegged 1:1 — no FX needed. No OFAC restrictions. No US government approvals. Chase, BofA, Wells Fargo, Citi, Schwab all process routinely. Wire fees: $25–$50. A $1.5M wire lands as $1.5M BSD. Simplest funding of any offshore jurisdiction.

What is the SALT deduction cap for 2026?

The OBBBA raised the SALT cap from $10,000 to $40,000 for 2025–2029, with phasedown above $500,000 income. Relevant for Americans in high-tax states (NY, CA, NJ, CT) considering Bahamas investment alongside Florida domicile planning to eliminate state income tax entirely.

Can I get a mortgage in The Bahamas as an American?

Yes. RBC Bahamas and CIBC FirstCaribbean offer mortgages to non-residents. Expect 30%–50% down, 6%–8% interest, 30–60 day processing. Many American buyers pay cash or leverage US home equity. No FX risk since BSD = USD. Glenn connects you with lenders serving American clients.

Do I need government approval to buy Bahamas property?

For residential property under 5 acres (owner-occupied), no prior approval — only registration under the International Persons Landholding Act (1993). Properties over 5 acres or undeveloped land require Investments Board approval. Most EPR-qualifying properties in Nassau are well under 5 acres.

What is the Home Owner's Residence Card?

A lower-tier annual option for foreign owners investing $250,000+. Costs $250/year, renewed annually, facilitates entry for up to 1 year. Not permanent residency, no work rights. Not relevant for buyers at the $1M+ EPR level. Full residency options guide.

Can I open a Bahamas bank account?

Yes. EPR holders can open accounts at RBC Bahamas, CIBC FirstCaribbean, Scotiabank, Bank of The Bahamas, Fidelity Bank. Accounts in BSD (= USD). Need EPR certificate, passport, proof of address, US bank reference. Remember: triggers FBAR reporting if aggregate foreign balances exceed $10,000.

How do I contact Glenn Ferguson from the US?

Glenn Ferguson: 1-242-395-8495 (WhatsApp). BREA Licensed #1247, Bahamas MLS, Residency Consultant. 24+ years. Glenn identifies qualifying properties, coordinates purchase, files EPR, works with your US CPA. Miami to Nassau: 45 minutes. ASK Glenn.

Related guides

Bahamas Permanent Residency for American Investors