The Bahamian government has introduced a 90-day qualifying period for permanent residents who wish to take advantage of its low tax regime.
The change was made in response to criticism by the Organisation for Economic Co-operation and Development (OECD) that its residence-by-investment scheme was being used by money launderers and tax evaders to dodge Common Reporting Standard (CRS) requirements.
Under the CRS, tax authorities collect information on the financial accounts of their tax residents and then pass it on to the watchdogs of other countries.
Setting the record straight
According to the government, people choosing to become domiciled in the Bahamas will only be eligible for tax residency if they spend at least 90 days in the islands over a full year, and no more than 183 days in another country.
The government will issue those qualifying with a tax certificate which will carry a unique taxpayer identification number to show to the holder’s country of birth or citizenship that the Bahamas is their main domicile.
As a result, all of the holder’s financial accounts will then be subject to the CRS agreements.
