Relocating your residence can trigger exit taxation in your former home country
Management and control from a high-tax country can lead to the application of foreign management rules (POEM)
Shareholding and control should be structured carefully to avoid CFC or management-and-control risks
Possible structuring tools include trusts, foundations or holding companies, depending on your individual situation
The Bahamas are an English-speaking island nation in the Atlantic, located south-east of Florida. They are not a member of the EU and use the Bahamian dollar (BSD), which is pegged 1:1 to the US dollar.
The country is known as an offshore financial centre and is regarded as tax-neutral for many standard companies. There is no traditional corporation tax as in most other countries. As a rule, no withholding tax is levied on dividends either.
However, very large multinational corporate groups that fall under the OECD Pillar Two rules may be subject to a 15% minimum tax. This only affects groups that exceed certain global turnover thresholds.
For domestic business activities, there is a VAT system. The standard VAT rate is 10%. Rather than calling it “tax-free”, it is therefore more accurate to say: no traditional corporation tax, but regulatory and tax compliance requirements apply.
The Bahamas are generally not suitable for operating companies that are effectively managed from a high-tax country without a genuine relocation. In such cases, the risk of a foreign place of management arising in the state of residence may occur.
The legal system is based on English common law and offers international legal certainty. Although the Bahamas are usually not used for actively operating businesses, they are considered an interesting option for clients who focus on confidentiality and international diversification, given their long-standing offshore tradition and regulatory cooperation, provided the structure is implemented correctly.
The right structure always depends on your country of residence and your worldwide tax obligations. Contact us for an individual assessment.
Yes. Incorporation can usually be handled entirely through a licensed Registered Agent. Personal travel is generally not required.
There is no traditional corporation tax and generally no withholding tax on dividends. However, VAT rules and international minimum tax regulations may apply depending on your individual situation.
Bank accounts are possible, but a thorough compliance review is carried out. Approval depends heavily on the quality of the documents and the business model.
For a standard IBC, this is generally not strictly required. However, depending on the planned structure and possible substance requirements, it may be sensible.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
|
|
|
|
from EUR 1,900 |
| Singapore | 0% |
|
|
|
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from EUR 2,950 |
| Hong Kong | 0% |
|
|
|
|
from EUR 1,900 |
| Cyprus | 15% |
|
|
|
|
from EUR 1,900 |
| Malta | 5% |
|
|
|
|
from EUR 2,500 |
| Ireland | 12,5% |
|
|
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from EUR 1,950 |
| Trust | 0% |
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|
|
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income, in some cases even if profits are not distributed.
Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
