By Aliya Allen (pictured), CEO & Executive Director, Bahamas Financial Services Board – It is not by chance that The Bahamas is amongst the most successful international financial centres in the region today. More than 80 years of thought, effort and co-operation have produced ideal conditions for High Net Worth individuals, families and businesses as well as funds related companies to manage wealth efficiently in comfort and style. The country’s mature financial services industry, established infrastructure, progressive government, tax neutral environment and luxury lifestyle all have been carefully cultivated to satisfy the specific needs of the most exclusive clientele.
The advantages of doing business in The Bahamas are as clear as the crystal waters surrounding the 700 islands of the archipelago:
Advantage – strategic location
The Bahamas is situated at the crossroads of the Americas, just 65 miles off the east coast of Florida, and on the same time zone as New York and Toronto. It is an ideal hub for regional investment and business in the Eastern United States and Canada, and much of Central and South America, offering a favourable location for ownership of intangible assets, and the operation of corporate offices and businesses involved in international trade.
Advantage – political and economic stability
The Bahamas has an outstanding record of political and economic stability, progress and stewardship, with more than 285 years of uninterrupted parliamentary democracy. It has been an independent nation since 1973, and retains a Westminster-based system of Government and an English-based legal system. It maintains a high ranking for civil liberties & political rights from the World Bank.
Advantage – regulation
The Bahamas encourages the growth of its financial sector through adherence to internationally accepted regulatory principles, and efficiency in their administration. Regulatory independence is maintained through the separation of roles of policy makers and regulators. Regulation and regulators are subject to independent assessments by the Caribbean Financial Action Task Force, the Caribbean sub-group of the Financial Action Task Force, and the International Monetary Fund.
Advantage – wealth and asset management options
The Bahamas offers owners of capital a broad choice of financial institutions that deliver myriad services including banking, private banking and trust services, investment fund administration, capital markets, investment advisory services, accounting and legal services, e-commerce, insurance and corporate and shipping registries. It is home to over 270 licensed banks and trust companies including seven of the world’s top eight private banks and 35 of the top 100 global banks. The Bahamas is a favourable jurisdiction for the establishment of family offices, which help wealthy families achieve their goals while dealing with increased regulations, and complex issues of taxation, distribution planning and charitable giving.
The range of professional investment management services available in The Bahamas continues to grow. There are more than 140 broker dealers and investment advisory firms that offer investment management services, custodial services, corporate services and registrar and transfer agent services. More than 60 fund administrators provide fund administration, corporate services and registrar and transfer agent services. In excess of 780 Funds are licensed in The Bahamas, with assets under management totalling in excess of USD128bn.
Refocused efforts by The Bahamas on captives is also seeing growth in this area as they represent an attractive risk financing option in today’s unpredictable insurance market.
Advantage – taxation
The Bahamas remains committed to a tax neutral platform upon which international persons receive the same tax benefits as Bahamians. The Bahamas adheres to the principle that persons have a right to privacy with respect to the conduct of their affairs. As such, it will only share information on agreed and transparent protocols under bilateral agreements to which it is a party.
Advantage – investment policy and incentives
The Bahamas’ government is committed to building an economic environment in which free enterprise can flourish. The National Investment Policy is designed to support an investment friendly climate and complements Bahamian and overseas investments. Investors may acquire publicly-owned lands for approved developments on concessionary terms, and lease low-cost industrial space.
Advantage – human capital
The Bahamas has a highly educated local workforce and a long tenure in financial services excellence which has created a deep pool of skill and experience that is recognised and trusted worldwide. With more than 6000 experienced financial professionals committed to the local community, clients can expect to build deeper and more lasting relationships and receive more consistent service in The Bahamas than in locations largely dependent upon imported skills.
Advantage – public-private sector partnership and innovation
Government and business interests in The Bahamas act in close partnership to respond to market needs and at the same time adhere to international standards. Spearheaded by The Bahamas Financial Services Board (BFSB) this partnership has created a wide range of innovative products such as Smart@Funds, the Bahamas Executive Entity and most recently The Bahama Investment Condominium (ICON) to establish The Bahamas as an innovative choice for wealth and asset management.
Advantage – lifestyle
The Bahamas is located in one of the most idyllic tropical settings in the world and has many attractive features for those who may wish to relocate permanently or establish a second home. Gated waterfront communities packed with lifestyle amenities from golf and tennis to spas and marinas are attracting more second and third-home buyers from North and South America, Europe and the Far East.
The Bahamas is a service economy accustomed to providing concierge residential management services for homeowners who are not in residence. Direct flights are available to The Bahamas from all major US cities, Canada, the UK, Europe and Panama, and the country has numerous ports of entry and marinas. US pre-clearance for commercial passengers exists from Nassau, while commercial passengers, private jets and goods shipped from Freeport also enjoy pre-clearance to the United States. The Bahamas is easy to get to, with six major airports, more than 50 other airports situated throughout the archipelago, as well as countless ports of entry and marinas that can accommodate the largest yachts.
Advantage – permanent residency opportunities
The Bahamas has a liberal process for granting Economic Permanent Residency (EPR) that makes it easier for individuals to “follow their money” with respect to where they live and work. Persons with permanent residence are for all intents and purposes treated like Bahamians, except for the right to vote. Economic permanent residence application is available for persons who spend a minimum of USD500,000 on a residence. For more substantive investments of USD1.5m or greater, there is accelerated consideration of applications.
Advantage – work permits and immigration
The Bahamas has a flexible immigration policy which encourages companies to develop Bahamian talent but recognises the needs of international firms, individuals and families to recruit additional human resources abroad. The country welcomes non-Bahamians with specialised skills and expertise which are not otherwise locally available.
Advantage – physical resources
The Bahamas has developed its land, premises and fit-for-purpose infrastructure with the singular focus of facilitating international business. Modern office facilities are connected globally through three separate, fully redundant, self-healing, fibre optic cable networks, with data protection at the OECD Standard.
All of these advantages may be summed up very simply: The Bahamas is committed to growth and developing its natural resources and cultivated assets to create an environment that supports business and the enjoyment of life in equal measure. Individuals, companies and family offices will all find a warm welcome when they come to The Bahamas.
