Moving to the Bahamas in 2026
Fifty miles from Florida, English-speaking, on the US dollar, and with zero income tax — the Bahamas is the Caribbean's easiest cultural landing for Americans. Here's what it really costs and how residency works.
For an American, the Bahamas is the softest possible landing in the Caribbean: under three hours from Miami, English-speaking, politically stable, on a dollar pegged 1:1 to the USD, and — the headline — with no income tax, no capital-gains tax, and no inheritance tax. The catch is that “no income tax” doesn't mean cheap: the Bahamas imports nearly everything, a 10% VAT rides on top, and the flagship residency route asks for a seven-figure property purchase. Here's the honest math.
Taxes: the real draw
The Bahamas levies no income tax, no capital-gains tax, and no inheritance tax — the reason wealthy Americans and Europeans have relocated here for decades. Revenue instead comes from a 10% VAT on most goods and services (applied at import and at sale, which is a big reason the cost of living runs high) and from property and stamp taxes. Note for US citizens: moving here does not end your IRS filing obligations — the US taxes on citizenship, so plan with a cross-border accountant.
Residency: the $1M real-estate route
The main pathway is Economic Permanent Residency (EPR), granted for a qualifying real-estate investment. Key terms (2026):
- Investment: a minimum of US$1,000,000 in real estate (raised from $750k on Jan 1, 2025), held for at least ten years. It's the purchase of a real asset, not a fee.
- Presence: full-time residency is not required — the expected minimum is roughly 90 days a year.
- Family: spouse and dependent children can be endorsed (small per-person fee).
- Fees & timing: government fees run about US$20,000–$25,000; processing typically 6–18 months (investments above ~$2M often get priority review).
There's no cheap shortcut to living here long-term — the Bahamas is squarely a destination for people who can buy in.
Cost of living
Plan for expensive. Overall costs run about 25% above the US with rent included; imports plus VAT are the drivers.
| Item (2026) | Typical figure | Note |
|---|---|---|
| Single person, excl. rent | ~$1,518/mo | ~$1,970 in Nassau specifically |
| 1-bed, city center rent | ~$1,319/mo | Beachfront villas $6,000–$12,000+ |
| Family of four, excl. rent | ~$5,446/mo |
Buying property & real estate
Foreigners can own freely. Non-Bahamian buyers pay VAT on the purchase (10% above $100k; 2.5% below), typically split with the seller, and there's no capital-gains tax on the eventual sale — a genuinely favorable environment for property investors. Nassau's premium communities and the Family Islands are the main foreign-buyer markets.
Is the Bahamas safe?
The honest picture: crime concentrates in specific parts of Nassau (New Providence), which is why the US rates the country Level 2. Gated communities and the quieter Family Islands feel much calmer, and most expats living in established areas report feeling comfortable with ordinary precautions.
Where expats actually live
- Nassau / New Providence & Paradise Island — the hub: services, international schools, gated communities, the airport.
- The Family Islands (Exuma, Eleuthera, Abaco) — space, quiet, and world-famous water, at the cost of city conveniences.
Is the Bahamas right for you?
- Great fit if: you want proximity to the US, an English-speaking, dollar-based life with zero income tax, and can fund a seven-figure property.
- Think twice if: you're on a modest budget (imports + VAT make it pricey), or you want an easy low-cost residency route — there isn't one here.
Relocating is step one. Owning the home is step two.
SORA designs and builds homes across the tropics — with our deepest roots in Panama and Costa Rica, where residency is straightforward and building costs a fraction of the coastal Caribbean. If your move is really about a place of your own in the sun, it is worth seeing what a fixed-price build looks like before you commit to any one island.
Frequently asked questions
Does the Bahamas have income tax?
No. The Bahamas levies no income tax, no capital-gains tax, and no inheritance tax. Government revenue comes mainly from a 10% VAT plus property and stamp taxes. US citizens still have IRS filing obligations because the US taxes based on citizenship.
How do you get residency in the Bahamas?
The main route is Economic Permanent Residency, granted for a real-estate investment of at least US$1,000,000 (as of Jan 1, 2025), held for ten years. Full-time residency isn't required — roughly 90 days a year is expected — and government fees run about US$20,000–$25,000, with processing typically 6–18 months.
How much does it cost to live in the Bahamas?
Expect about 25% above the US with rent included. A single person spends roughly $1,518/month excluding rent (about $1,970 in Nassau), and a city-center one-bedroom rents for around $1,319/month. Imports and a 10% VAT drive the high cost.
Is the Bahamas safe?
It's rated Level 2 (Exercise Increased Caution) by the US State Department, with most concerns focused on parts of Nassau. Gated communities and the Family Islands feel considerably calmer, and expats in established areas generally feel comfortable with normal precautions.
Sources & verification
Figures in this guide were checked against primary and authoritative sources on 27 July 2026. Immigration, tax, and cost figures change — always confirm the current rules with the official body or a licensed professional before acting.
- Bahamas Department of Immigration — official permanent-residency (EPR) rules
- Bahamas Ministry of Finance / VAT — official tax (no income tax; 10% VAT)
- US State Department — Bahamas — Level 2 travel advisory