The Commonwealth Of

National Investment Policy

Table of Contents

MONACO OF AMERICA Honorary Consul of The Bahamas An invitation by the Prime Minister ...... 3 L’estoril 1/A4 CHICAGO 31 Avenue Princess Grace Bahamas Tourist Office Introduction to The Bahamas ...... 4 MC 98000, Monaco Principality 8770 W. Bryn Mawr, Suite 1300 Tel.: 377-9330-5150 – Fax: 377-9330-5177 Chicago, IL 60631 Economic Policy ...... 5 Tel.: (773) 867-8377 - Fax: (773) 867-2910 SWITZERLAND The Investment Environment ...... 5 Honorary Consul of The Bahamas FLORIDA Schutzengasse 1, Postfach 6075 Bahamas Office International Financial Centre ...... 5 CH-8029, Zurich, Switzerland 1200 South Pine Road, Suite 770 Investment Incentives ...... 5 Tel.: 41-226-40-42 – Fax: 41-1-226-40-43 Plantation, FL 33324 Tel.: (954) 236-9292 - Fax: (954) 474-1773 Bahamas Tourist Offices Preferential Trade Incentives ...... 6

CANADA LOS ANGELES Administration of Investment Policy ...... 6 Bahamas Tourism Office Bahamas Tourism Office 11400 West Olympic Blvd. #200 Establishing a Business in The Bahamas ...... 6 6725 Airport Road, Suite 202 Los Angeles, CA 90064 Mississauga, Ontario L4V 1V2, Tel.: (310) 312-9544/ (800) 439-6993 Project Proposal Guideline ...... 6 Tel.: (905) 672-9017 - Fax: (905) 672-2092 Fax: (310) 312-9545

ENGLAND NEW YORK General ...... 7 Bahamas Tourism Office Bahamas Tourist Office 1. Work Permits Bahamas House 60 East 42nd Street, Suite 1850 New York, NY 10165 10 Chesterfield Street 2. International Owners of Second Homes London, W1J 5JL Tel.: (212) 758-2777 / (800) 823-3136 Fax: (212) 753-6531 Tel.: +44-20-7355-0800 3. Annual or Permanent Residence Fax: +44-20-7491-9459 PHILADELPHIA Bahamas Tourist Office 4. Areas Especially Targeted for Overseas Investors FRANCE 1500 Market Street 5. Areas Reserved for Bahamians Bahamas Tourism Office 12th Floor, East Tower 113-115 rue du Cherche Mifi Philadelphia, P.A., 19102 6. Local Partners in Joint Ventures 75006 Paris, France Tel.: (215) 246-3402 - (610) 722-5792 Tel.: +331-45-26-62-62 7. Access to Credit Facilities of The Bahamas Development Fax: +331-48-74-06-05 Important Addresses ...... 8 GERMANY Bahamas Tourism Office Bahamas Overseas Missions ...... 9 Friesstrasse 3 60388 Frankfurt/Main, Germany Tel.: +49-69-420-890-19 - Fax: +49-69-420-890-27

ITALY Bahamas Tourism Office Corso Magenta 54 20123 Milan, Italy Tel.: +39-02-48194390 - Fax: +39-02-4693248 11 1 NEW YORK FRANCE Consul General Honorary Consul Bahamas Consulate General 5, Rue de Beaune Bahamas House Paris, France 75007 231 East 46th Street Tel.: 42-86-04-00 New York, NY 10017, U.S.A. Fax: 47.03.39.27 Tel.: (212) 421-6420 Fax: (212) 688-5926 GERMANY Honorary Consul of The Bahamas Permanent Representative of The Bahamas Flottenstrasse 14-20 to the United Nations 13407 Berlin, Germany Bahamas House 231 East 46th Street GREECE New York, NY 10017, U.S.A. Honorary Consul of The Bahamas Tel.: (212) 421-6925 253 Sygrou Avenue Fax: (212) 759-2135 17122 Athens, Greece Tel.: 30-210-941-1603 WASHINGTON Embassy of The Bahamas 2220 Massachusetts Avenue, N.W. Honorary Consul of The Bahamas Washington, D.C. 20008, U.S.A. 3rd Floor F-11 East of Kailash Tel.: (202) 319-2660/7 New Dehli, 110065 Fax: (202) 319-2668 Tel.: 911-11-2646-4490 Fax: 911-11-2646-4492 Honorary Consuls ISRAEL BELGIUM Honorary Consul of The Bahamas Honorary Consul of The Bahamas 2, Paamoni St. 76/78 Quai aux Briques Tel-Aviv 62918 Belgium, Brussels Israel Tel.: 322-512-9348 Tel.: 972-5-0277014 Fax: 322-512-9292 Fax: 972-3-5465604

CHILE ITALY Honorary Consul of The Bahamas Honorary Consul of The Bahamas Los Trapenses 4188, La Dehesa Via Giola, n.200 Santiago de Chile, Chile 00186 Rome, Italy Tel.: (562) 241-7117 Tel.: 39-06-6878086 Fax: (562) 241-7118 Fax: 39-06-6878276

DOMINICAN REPUBLIC JAPAN Honorary Consul of The Bahamas Honorary Consul of The Bahamas Cesar Nicolas Person 116 Edificio TPA c/o G.T.R. Campbell (Japan) Co. Ltd. Santo Domingo, Room No. 303, Tokyo Sakurada Bldg. Tel.: (809) 688-3787 1-1-2 Nishishinbashi Fax: (809) 682-0237 Minato-Ku, Tokyo 105-0003 Japan Tel.: 81-3-5501-3766 - Fax: 81-3-3503-4155

10 BAHAMAS REAL ESTATE ASSOCIATION CANADA Shirley Street & Collins Avenue Bahamas High Commissioner P.O. Box N-8860 Bahamas High Commission Nassau, The Bahamas Metropolitan Life Centre Tel.: (242) 325-4942 50 O’Connor Street, Suite 1313 Fax: (242) 322-4649 Ottawa, Ontario K1P 6L2, Canada Message From Tel.: (613) 232-1724 GOVERNMENT PUBLICATIONS OFFICE Fax: (613) 232-0097 Rt. Hon. Hubert A. Ingraham Lighthouse Building, Bay Street E-Mail: [email protected] Prime Minister & Minister of Finance P.O. Box N-7147 The Commonwealth of The Bahamas Nassau, The Bahamas Tel.: 322-2410 4th Floor, Tayuan Diplomatic Office Building Fax: (242) 328-8294 14 Liangmahe Nan Lu, Chaoyang District Beijing, 100600, People’s Republic of China The Bahamas has consistently over many years offered a climate where commerce and enter- PORT AUTHORITY Tel.: 011-86-10-6532-2922 East Mall Drive & Pioneer’s Way Fax: 011-86-10-6532-2304 prise flourish. Our National Investment Policy is comprehensive, with clear and transparent applica- P.O. Box F-42666 tion and approval processes. Our political stability, independent judiciary, stable economy, developed Freeport, Grand Bahama, The Bahamas Tel.: (242) 352-6711 Charge d’Affaires a.i. infrastructure and skilled labour force ensure a good standard of living and an ideal environment for Fax: (242) 352-8310 Embassy of The Bahamas investing. 12 Rue Goulard BAHAMAS FINANCIAL SERVICES BOARD Place Boyer, Petion-Ville, Haiti P.O. Box N-1764 – Nassau, The Bahamas Tel.: (509) 578-782 This updated National Investment Policy seeks to promote and facilitate investment in our Tel.: (242) 326-7001 Fax: (001) 509-578-782 Fax: (242) 326-7007 country. We seek investment that will grow our economy, create secure and rewarding employment Web-site: www.bfsb/bahamas.com for Bahamians and produce good returns for investors. Through the aegis of The Bahamas Invest- E-mail: [email protected] Consulate General of The Bahamas Room 1906, 19/F Hutchinson House ment Authority and The Bahamas Agricultural & Industrial Corporation (BAIC), we seek to ensure ASSOCIATION OF INTERNATIONAL & TRUST 10 Harcourt Road cOMPANIES that both domestic and foreign direct investors are provided with responsive, efficient and reliable Central, Hong Kong investment support services. Royal Palm Mall, Mackey Street Tel.: (852) 2619-6421 P.O. Box N-7880 Fax: (852) 2614-5228 Nassau, The Bahamas Investment opportunities can be found across a wide range of sectors including tourism Tel.: (242) 394-6755 lONDON Fax: (242) 394-3503 Bahamas High Commissioner and second home development, international financial services, light manufacturing and industries, Bahamas High Commission and mariculture. BAHAMAS MARITIME AUTHORITY No. 10 Chesterfield Street 3rd Fl. Manx Corporate Centre London W1J 5JL, England P. O. Box N-4679 Tel.: + 44-207-408-4488 I invite you to review our offerings and to pursue your business and investment interests with us. Nassau, The Bahamas Fax: + 44-207-499-9937 Tel.: (242) 356-2037 E-mail: [email protected] Fax (242) 356-5889 MIAMI Bahamas Overseas Missions Consul General Bahamas Consulate General ATLANTA 25 S.E. 2nd Avenue Consul General Ingraham Building, Suite 818 Bahamas Consulate General Miami, FL 33131, U.S.A. 2970 Clairmont Road, Suite 690 Tel.: (305) 373-6295 Atlanta, GA 30329, U.S.A. Fax: (305) 373-6312 Tel.: (404) 214-0492 Telex: 203-807-849 9 3 Important Addresses BAHAMAS INVESTMENT AUTHORITY • Security services; Office of the Prime Minister Cecil V. Wallace-Whitfield Centre • Domestic distribution of building supplies; Cable Beach P.O. Box CB-10980 • Construction companies, except for special Nassau, The Bahamas structures for which international expertise is Tel.: (242) 327-5826/9 required; Fax: (242) 327-5806/327-5639 Web Site: www.bahamas.gov.bs/bia • Personal cosmetic/beauty establishment; CENTRAL BANK OF THE BAHAMAS • Commercial fishing; Frederick Street P.O. Box N-4868 • Auto and appliance service operations; and Nassau, The Bahamas Tel.: (242) 302-2600 / (242) 322-2193/6 Fax: (242) 356-4307 • Public transportation. E-mail: [email protected]

International Investors may engage in the wholesale BAHAMAS CHAMBER OF COMMERCE distribution of any product they produce locally. Shirley Street P.O. Box-665 Nassau, The Bahamas 6. Local Partners in Joint Ventures Tel.: (242) 322-2145/ (242) 322-3320 Fax: (242) 322-2649 International investors are encouraged to establish joint ventures with Bahamian partners. The choice of such Baha- INSURANCE COMMISSION OF THE BAHAMAS Charlotte House, 3rd floor mian partners is in the absolute discretion of the investor. Frederick Street P.O. Box N-7770 7. Access to Credit Facilities of The Nassau, The Bahamas Bahamas Development Bank Tel.: (242) 328-1068 Fax: (242) 328-1070 The Bahamas Development Bank was created to assist Bahamians in establishing new businesses or expanding OFFICE OF THE REGISTRAR GENERAL existing concerns through the provision of concession- Apseley House, Frederick Street ary funding and technical assistance for projects which (opposite Central Bank) generate jobs and which contribute to the economic growth P.O. Box N-532 and development of The Bahamas. Nassau, The Bahamas Tel.: (242) 323-0594/6 Fax: (242) 322-5553 Joint ventures between international investors and Bahamians are eligible to access funding from BDB. SECURITIES COMMISSION OF THE BAHAMAS However, the equity of the overseas investor may not be Charlotte House, Charlotte Street borrowed from the BDB or from the domestic capital P.O. Box N-8347 market. Nassau, The Bahamas Tel.: (242) 356-6291 Bahamians may, however, borrow a percentage of their Fax: (242) 356-7530 contribution from BDB or the domestic capital market. An E-mail: [email protected] established joint-venture is not debarred from accessing BDB funds.

8 • International Business Centre General • Marinas

To ensure the maximum benefit to The Bahamas from the • Information and Data Processing Services National Investment Policy, certain immigration provisions • Assembly Industries will apply: • High-Tech Services Introduction 1. Work Permits • Ship Registration, Repair and other services • Light Manufacturing for export Necessary work permits will be granted for key personnel. to The Bahamas • Agro-Industries Approved investors in major development projects which investment creates employment and business opportunities • Food Processing for Bahamian citizens and who own or acquire a residence • Mari-culture in The Bahamas, may be granted Permanent Residency sta- • Banking and other Financial Services tarting 60 miles off the coast of South Florida tus with the right to work in their own business. and stretching as far south as Cuba, HaitiS and the Dominican Republic, The Bahamas is a • Captive Insurance coral archipelago of 700 , 29 of which are inhabited, and over 2000 rocks and cays. 2. International Owners of Second Homes • E-Commerce With a population of some 303,600 people, most of whom live on the major Islands Overseas Investors may acquire residential properties in • Aircraft Services (, Grand Bahama, Eleuthera, Abaco, , Long Island, Inagua, Cat Island, The Bahamas of up to two acres without prior Government • Pharmaceutical manufacture Bimini and Andros), and with an adult literacy rate of 95%, The Bahamas has a capable and adaptable work force. approval. Such acquisitions are required to be registered • Off-shore Medical Centres in accordance with the International Persons Landholding The Bahamas, an English speaking country which gained its independence from Act. Second Home Owners are eligible for a Home N.B. This list is not exhaustive and investors Britain on 10th July, 1973, is one of the most politically stable countries; and a parliamentary Owners Residence Card, renewable annually. This card interested in areas not included above are democracy has operated without interruption for 275 years. facilitates entry into The Bahamas and entitles the owner, encouraged to bring their interest to the his or her spouse and minor children to enter and remain attention of BIA. The Bahamas has comprehensive and modern infrastructure, particularly on the in The Bahamas for the duration of the validity of the card. two major Islands, New Providence and Grand Bahama, where most of the population live. Telecommunications services and facilities in The Bahamas are state-of-the-art, with direct Application may be made to the Director of Immigration. 5. Areas Reserved for Bahamians Persons applying for land for commercial use are required international links provided through a 100% digital switching system. to obtain a permit. • Wholesale and Retail Operations; The economy of The Bahamas is driven by tourism and international banking and

other financial services. Retail and wholesale distributive trade, manufacturing, agriculture 3. Annual or Permanent Residence • Commission agencies engaged in the and fisheries are the other major sectors of the economy. The (GDP) import/export/trade; of The Bahamas exceeds $7½ billion, 50% of which comes from tourism related activities. Accelerated consideration of applications for annual or per- The per capita income of the country is $22,200. manent residence will be given to: • Real estate and domestic property management agencies; The Bahamas is an independent monetary entity. The is on par with the • major international investors; and U.S. dollar.

• Domestic newspaper and magazine There are no income or corporate taxes in The Bahamas. • fit and proper owners of a residence valued publication; at $500,000 or more. • Domestic advertising and public 4. Areas Especially Targeted for Overseas relations firms; Investors • Nightclubs and restaurants, except specialty, • Touristic Resorts gourmet and ethnic restaurants; restaurants • Upscale Condominium, Time-share and operating in a hotel, resort complex or tourist attraction; Second Home Development 7 4 Economic Policy • Essential public services, an adequately equipped • The Export Manufacturing Industries Establishing a Business in The Bahamas police constabulary, modern health and education Encouragement Act The Government of the Commonwealth of The facilities and other social services; An international investor seeking to do business Bahamas is committed to building an economic • The Industries Encouragement Act in The Bahamas should submit to BIA a project environment in which free enterprise can flourish; where • Dependable public utilities; and proposal, along with supporting documents. The the Government assumes its proper role as regulator and • The Agricultural Manufacturers Act proposal should provide the information indicated in the facilitator of economic development; where the ideals • Essential public infrastructure such as roads, ports following Project Proposal Guideline. of transparency, fair play and equality of treatment are and airports. • The Tariff Act paramount; and a policy that maintains a stable N ame Project Proposal Guideline society in which all people are afforded the opportunity to International Financial Centre • The Free Trade Zone Act Name realize their maximum potential. In this regard, the ACorporation ddress and Beneficial Owner i nclude telephone/fax Address include telephone/fax National Investment Policy is designed to support The Government is committed to enhancing the image of • The City of Nassau Revitalization Act an investment friendly climate. It guarantees the D escription of Proposal a n executive summary of project The Bahamas as an international financial centre. To this complementarity of Bahamian and overseas investments; Description of Proposal an executive summary of project end, the Government will use international best practices • The Hotels Encouragement Act T ype of Business s tate whether entity is share fosters appropriate linkages with all sectors of the economy, as it: Type of Business csotamtep anwy,h petahretnr ersehnipti,t y is share in particular the tourism and financial services sectors; • The Family Islands Development icnodmivpidanuyal, opra rjtonienrts-hviepn,t ure encourages the exploitation of our natural resources in • Maintains The Bahamas as a leading financial individual or joint-venture Encouragement Act P rincipals p ersons investing in the venture or an environmentally sound, safe and sustainable manner; services centre; major beneficial shareholders provides for the maximum level of employment; Principals personspersons i investingnvesting in in t h thee v e venturenture or • The Spirits and Beer Manufacturers Act major beneficial shareholders guarantees an acceptable level of economic security; and or major beneficial sharehold- • Monitors all developments in the international ers, including references attest- generally fosters the economic growth and development financial markets and amend any rules, regu- • The Bahamas Vacation Plan and Time-Sharing Act ing to bonafides, respectively, of The Bahamas. lations or legislation that would preserve and copy of relevant pages of enhance the competitiveness of the financial Note: Custom duty exemptions do not apply to passport, police certificate The Investment Environment services sector of the Bahamian economy; consumables. P roposed Location To undergird the National Investment Policy, the Govern- Proposed Location • Ensures the operation of a clean financial Preferential Trade Incentives ment will provide: L and or Factory Space centre with specific rules and regulation to RLeaqnudi roerm Feancttso ry Space prevent the laundering of criminally derived • A politically stable environment conducive Businesses located in The Bahamas may benefit from the Requirements assets; following preferential trade arrangements: P roposed Start Up Date to private investment; MPraonpaogseemd eSntta/rPt eUrspo Dnnaetle y ears of experience, training, Requirement success of similar previous or • Supports the Central Bank of The Bahamas Management/Personnel years of experience, training, • An atmosphere where investments are safe and • European Partnership Agreement (EPA) Requirement csurcrceensts acotfiv itsyim; iwlaorr k prpeevrimouits (oifr in its commitment to bank supervision and any) required for key personnel the expropriation of investment capital is not a current activity; work permits (if promoting high standards of conduct and sound aanndy/)o r rneoqnu-irkeedy pfeorrs oknenye l personnel considered option; • Caribbean banking practices; and and/or non-key personnel E mployment Projections n umber of Bahamian and non- • A legal environment based on a long tradition of • Caribbean Basin Initiative Employment Projections Bnuahmabmeria no Ef mBpalohyaemeisa n and non- • Supports the self-regulatory measures of the parliamentary democracy, the rule of constitu- Bahamian Employees Association of International Bank and Trust • Caribbean Basin Economic Recovery Act F inancial Arrangement for projects tional and statute laws and where security of life including Bank Reference Companies (AIBT), particularly, the estab- Financial Arrangement for projects conclusive evidence of financial and personal property are guaranteed; including Bank Reference lished code of conduct for bank and trust com- Administration of the Investment Policy capacity to successfully imple- ment the project panies. • A stable macroeconomic environment bolstered Executive Management of the Investment Policy is resident E nvironmental Impact t oxic waste, disposal by prudent fiscal management, a stable exchange Investment Incentives in the National Economic Council (NEC), headed by the Environmental Impact ptoroxcice dwuarsetse;, tdoixsipco isnapl ut rate, flexible exchange control rules and free trade; procedures; toxic input Prime Minister. The Bahamas Investment Authority (BIA) C oncessions Sought C ustoms Duty Exemptions The Government provides meaningful investment or the Investor’s “One-Stop-Shop” serves as the secretariat • An environment in which freedom from Capital ConcessionsConcessions SSought/Investmentought CustomsCustoms DDutyuty EExemptionxemptions incentives, including exemption from the payment of of the NEC and the Investments Board. IncentiveI nvestment Incentive iif f applyingapplying underunder aa particularparticular Act Ac t Gains, Inheritance, Withholding, Profit Remit- customs duties on building materials, equipment and Investment Incentive oorifr paprogrammerpopglyrainmgm uen der a particular Act

tance, Corporate, Royalties, Sales, Personal approved raw materials and real property taxes for Local Representative or programme Income, Dividends, Payrolls and Interest taxes is L ocal Representative Attorney,a ttorney, aAccountantccountant o ror a gAgentent periods up to twenty years, under the following legislation: ensured; Local Representative attorney, accountant or agent 5 6 3 3