Bahamas: Investing

FDI in Figures

The economic crisis had a great impact on the FDI flows into the Bahamas, leading to a decline of more than 30% in 2009. Due to the deteriorating economic situation of Canada and the United States, the inflows of FDI should decrease during the next following years. The dependence of the Bahamas on foreign investment is unlikely to change in spite of the government's strong will to increase the country's development.

The country offers investors a stable and democratic political environment, attractive fiscal laws, well-developed infrastructures, qualified workforce and a geographical proximity to the United States. On the other hand, the main weaknesses of the island are the lack of economic diversification and the small scale of its domestic market. The tourism sector attracts most of FDI, coming from the United States and Canada.

	Bahamas	Latin America & Caribbean	الولايات المتحدة	Germany
Index of Investor Protection	4.7	5.1	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	839	657	977
FDI Stock (million USD)	7,732.1	8,385.8	9,062.3
Number of Greenfield Investments***	3.0	2.0	-
FDI Inwards (in % of GFCF****)	35.6	15.7	-
FDI Stock (in % of GDP)	103.6	115.9	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

No consumption tax
Company Tax: None
Withholding Taxes: No taxes are levied on corporate income or gains. As the Bahamian government does not levy any direct taxes, there are no taxation conventions between the Bahamas and other countries.
Bilateral Agreement: Egypt and the Bahamas are not bound by a tax agreement.
Social Security Contributions Paid By Employers: 5.4%

Investment Opportunities

Tenders, Projects and Public Procurement: Inter-American Development Bank, Tenders in South America
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Bahamas.
Useful Resources: Bahamas Investment Authority

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