Why U.S. Citizens are Choosing to Live in the Bahamas

What you need to know about moving to the Bahamas from the US

Hello, I’m Glenn Ferguson, Bahamas Real Estate Agent, and Residency Consultant.

Over the years, the Bahamas has become one of the most popular vacation destinations for U.S. citizens, and it’s now emerging as a fantastic place to call home.

With its stunning sandy beaches, clear waters, and inviting tropical lifestyle, it’s easy to see why so many are moving to the Bahamas from the US. Plus, the absence of income taxes makes it even more appealing for expats.

Get information about the Bahamas Permanent Residency.

So here is why US Citizens are choosing to live in the Bahamas and a video on "What you need to know before moving to the Bahamas" for Americans by Nomad Capitalist.  

The Appeal of Living in the Bahamas

Living in the Bahamas offers numerous advantages, especially for U.S. citizens. Here are some of what makes this destination so attractive.

• Bahamas A Tropical Paradise
  • Imagine waking up every day to warm sunshine and breathtaking ocean views.
  • The Bahamas provides a year-round tropical climate that enhances your quality of life.
• Bahamas Tax-Free Living
  • One of the biggest draws for expats is that the Bahamas does not impose taxes on income, capital gains, or wealth.
  • This tax-free environment allows both individuals and businesses to thrive without the burden of high taxes.

Cost of Living and Residency in the Bahamas

While the Bahamas is undeniably desirable, it’s important to consider the cost of living and the requirements for obtaining residency.

• Cost of Living in the Bahamas
  • The cost of living in the Bahamas is approximately 26% higher than in the United States.
  • This is something to keep in mind as you plan your move.
• Obtaining Bahamas Permanent Residency
  • To become a permanent resident, you typically need to invest in property or other sectors, such as medicine or tourism.
  • The minimum capital investment for permanent residency is $500,000, but investing between $750,000 and $1.5 million can expedite your application process.
  • The government aims to respond within 21 days of receiving a complete application.
  • When applying, you’ll need to provide a clean criminal record, copies of your passport, proof of financial capability, and character references.
  • Once you’re granted permanent residency, you don’t need to be physically present in the Bahamas all the time but to maintain tax residency, you should spend at least 90 days there each year.

Benefits of Bahamas Permanent Residency

• One of the great aspects of obtaining Bahamas permanent residency is that you can include your spouse and underage children as dependents.
• Additionally, the Bahamian passport is valuable and may facilitate travel to the U.S., though it takes ten years to obtain citizenship.

Understanding Taxes in the Bahamas

• The Bahamas is a tax-free jurisdiction, meaning there are no taxes on income, capital gains, dividends, or royalties.
• However, be aware of property taxes. The first $250,000 of a property’s value is tax-exempt, with a 0.6% tax on the next $250,000 and a 1% tax on properties valued above $500,000.

Bahamas Social Security Contributions

• As a U.S. citizen living in the Bahamas, you’ll need to contribute to the Bahamian National Insurance (Social Security), which is about 8.8%.
• Currently, there’s no totalization agreement between the U.S. and the Bahamas, which means you could end up contributing to both systems.

Navigating U.S. Taxes

• Even though the Bahamas doesn’t impose income taxes, U.S. citizens must still file taxes with the IRS.
  • You’ll need to submit Form 1040 annually, even while living abroad.
  • While you can get an extension to file until June 15, you still need to pay any taxes owed by April 15 to avoid penalties.
• If you hold foreign bank accounts with $10,000 or more at any point during the tax year, you must also file an FBAR (Foreign Bank Account Report).
  • Depending on your situation, you may have additional forms to file, so it’s advisable to consult with a CPA.

If you’re considering relocating from the U.S. and want to stay close to home without complicating your tax situation, the Bahamas could be the perfect fit.

As a Bahamas permanent resident, you can enjoy a tax-free lifestyle and the beauty of sandy beaches every day, as long as you maintain your investment.

Call or WhatsApp 1-(242)-395-8495 or click ASK Glenn, if you have questions about making the move.

I’m here to help you navigate this exciting opportunity!