How much is the Bahamas' income tax rate?

One of the most attractive features for the Bahamas to lure both individuals and businesses is the fact that it implements zero tax on income. As of 2025, the Bahamas does not levy personal income tax. Most businesses also benefit from zero corporate income tax, except for certain multinational enterprises that may fall under the newly introduced minimum top-up tax regime.

Personal Income Tax in the Bahamas

• No personal income tax: The earnings of an individual in the form of salaries, wages, dividends, etc., are not subject to tax.
• Therefore, the Bahamas is quite a suitable place for the rich, digital entrepreneurs, and professionals who are looking for a tax-friendly jurisdiction.

Corporate Income Tax in the Bahamas

• There is generally no corporate income tax in the Bahamas: Most businesses are not subject to traditional corporate tax laws. However, starting from late 2024, a Domestic Minimum Top-up Tax applies to large multinational enterprises that fall under the OECD Pillar Two framework, while local and smaller companies remain unaffected.
• Such a policy is the one contributing to the country’s standing as a worldwide center for offshore companies, banking, and foreign trade.

Alternative Revenue Sources

The government of the Bahamas replaces income tax with other revenue sources, such as:

• Value Added Tax (VAT) at 10% on most goods and services,
• Import duties and excise taxes,
• Annual Business Licence fees based on company turnover,
• Real property taxes and stamp duties,
• National Insurance contributions from both employers and employees.

The absence of an income tax rate makes the Bahamas a highly competitive jurisdiction compared to regions where individual tax rates can exceed 40% and corporate tax rates reach 20–30%. This advantage strengthens its appeal as a destination for asset protection, wealth management, and international business structuring.

Professional Guidance with Offshore Company Services

While the Bahamas offers a clear tax advantage, compliance with local VAT, reporting, and licensing requirements remains essential. Offshore Company Services provides expert services in company formation, tax compliance, and corporate governance, helping investors maximize benefits while staying fully compliant.