What makes the Bahamas a financial sanctuary?

Image source: LOM Financial

The Bahamas is a natural Atlantic paradise that attracts millions of tourists every year but it’s not only tourism that makes it an international favorite—it’s also an important global financial services center for offshore investments, offshore portfolio management, and offshore discretionary management, among others. The island-nation has a stable economy and is considered one of the few tax-neutral jurisdictions that serve as financial sanctuary not just to its residents but also to international investors and businesses.

Non-residents can enjoy the benefits of working and investing in the country because of several tax treaties in the Bahamas. However, it’s important to take note that living full-time in the Bahamas does not excuse foreign residents from fulfilling their tax responsibilities in their home country.

Income tax and national insurance

One attractive benefit of working in the Bahamas is its zero personal income tax policies. Both employed by a company and self-employed individuals, however, are not excluded from paying a national insurance on salary if you are a resident.

The proceeds of these funds keep the country’s benefits system alive. However, the fund will only benefit Bahamian residents. Refunds, depending on how long they’ve been working in the Bahamas, can be claimed by expats after retirement, given that they return to their home country.

Value Added Tax

As of January 2015, a new tax policy—the value added tax—has been introduced to the Bahamas. Because of this, hotel, home rental, and similar services will have to pay 7.5 percent of the VAT, as an alternative to the previous 10 percent guest tax.

Stamp Duty and other taxes

This tax policy covers a different variety of circumstances. Examples are real estate transactions or even large amounts of currency transactions abroad. The fees are shared and divided between the two parties, the buyer, and the seller.

The Bahamas don’t have inheritance taxes and wealth taxes. Moreover, there is no need for a declaration of earnings in the country. This Caribbean gem holds very high regard to its bank privacy law.

Notable personalities from the Cayman Islands

Aside from being one of the most efficient offshore investment and financial centers in the Caribbean region, the Cayman Islands is also home to several personalities from different industries who managed to conquer the world through their sheer talent and hard work.

From the fashion scene to the world of sports, here is a list of some of the notable figures who hail from this British Overseas Territory:

  1. Selita Ebanks

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Known for her image as a highly-sought after top model of high-fashion companies like Ralph Lauren and Neiman Marcus, not all of Selita Ebanks’s followers realize that she’s a Cayman-born beauty. From 2005 until early 2009, she was one of Victoria’s Secret “angels”. Aside from her fashion gigs, she also practiced her talent in acting, making appearances in several American television series.

  1. Frank E. Flowers

Image source: hollywood.com

In the independent film industry, Frank E. Flowers is an emerging director and screenwriter who won several awards and nominations for his works. Among his best works is the awarding-winning “Swallow”, a 2003 short film and “Haven”, a 2004 feature motion picture. According to a 2015 report, he was chosen by Lantica Media to direct the studio’s new thriller, “Our Father”.

  1. Dow Travers

Image source: caymancompass.com

Travers was Cayman Islands’ first Winter Olympian, representing the Caribbean country in alpine skiing during the 2010 Winter Olympics. Aside from his skiing career, Dow Travers is a rugby union player for the Cayman Islands national team. Because of his famously red hair and an impressive athletic agility, he was branded the name, “The Ginger Ninja” by his fans and followers.