Lagoons dig into the jagged, rocky coastline of The Bahamas and provide much of the beauty that attracts millions of visitors every year. Such ocean coastline contrast with the white and pink powdery sand beaches for which The Bahamas is world-renowned. Located along the Tropic of Cancer, it is washed by warm waters from the Gulf Stream and cooled by southerly trade winds. Often called The Isles of June, here is one of the finest tropical climates in the world.

The capital city of Nassau is on the island of New Providence. Freeport, the second largest city, is situated on Grand Bahama. Islands in the archipelago other than New Providence and Grand Bahama are known as the Family Islands.

A Strong Tradition of Democracy and Political Stability

Parliamentary democracy was introduced to The Bahamas in 1729 and has been sustained uninterrupted for 266 years, making it one of the most stable countries in the world. The Bahamas has been a fully independent nation since 1973 and holds membership in the British Commonwealth, the United Nations and Organization of American States. This long standing democratic heritage and maturity as an independent state makes The Bahamas one of the safest and most stable international locations for investments.

The Bahamian judiciary is a well-established and fully independent branch of government. English Common Law is the basis of the judicial system, although there is a large body of Bahamian statutory law. The Supreme Court is a court of unlimited jurisdiction in civil and criminal matters. An appeal from the Supreme Court lie to The Bahamas Court of Appeal consisting of three (3) distinguished jurists who have previously held high judicial office. The highest Court, the Privy Council, sits in London. Appeals from the Bahamas Court of Appeal lie with the Privy Council.

Investment Factors: a climate for business

The Bahamas has earned an enviable reputation as one of the world's leading international financial centers, housing billions of dollars of offshore money in more than 400 licensed banks and trust companies.

The absence of taxes is the main reason it draws so much wealth. But the Bahamas has also led the way in laws designed to attract business from around the globe, including the innovative IBC (International Business Company) legislation that kick started the industry in the early 1990s. Since then, trust legislation, the regulation of mutual funds, captive insurance laws and a Bahamas stock exchange are examples of the kind of forward thinking that has helped keep the jurisdiction in the top 10-some say five- of the world's offshore centers.

Global business needs efficiency, tax freedom and privacy-and The Bahamas delivers it all. It is in the same time zone as New York with 24 hour trading of currencies, commodities, bonds and stocks. Telecommunications are regularly updated and expanded, and the latest fibre-optic cables are being laid between the US and The Bahamas, as well as trans-Atlantically.

Other advantages that have put The Bahamas at the forefront of countries competing for offshore business include:

• Law designed for the global needs of the 21st century, including up-to-date trust legislation, company law and bank secrecy and privacy laws, which are among the most important transnational business requirements today.
• Branches of the world's leading banks operating with skilled Bahamian and expatriate management. The Bahamas has banks from over 30 countries.
• A banking system well regulated by the Central Bank of The Bahamas. Remember the BCCI scandal of the mid-90s? The Central Bank had closed them down in Nassau years earlier.
• A democratic government that reflects the influence of the British Commonwealth 26 years after gaining independence. Queen Elizabeth II is the recognized Head of State and her appointed Governor General is seated in the Government House.
• An experienced Bahamian work force, which has grown up with the offshore industry.
• The existence of the information superhighway of the Internet, intra-net and satellite powered communications systems. An undersea fibre-optic cable is capable of massive data transmission volumes, which, together with mainframe computer capacity, keep the money flowing.
• Professional support services-corporate law experts, mutual fund operators, accountants, trust officers, bankers and financiers.
• Courier services, including FEDEX, UPS and DHL, which have efficiently delivered the paperwork that keeps the world's money administered, managed and invested.
• Airline capacity to transport corporate executives, private investor's, accountants, advisors, attorneys and supporting professionals. Between air and sea, private planes and boats, an estimated one million visitors a year come for business first, relaxation second-representing a third of all arrivals.
• Hotels, restaurants, taxis, rental cars, casinos, golf courses, tennis clubs and more temper business with pleasure.

Freedom from Taxation

One of die most attractive elements about investing in The Bahamas is the tax-free status accorded income. There are no taxes levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. This tax freedom is available to all resident corporations, partnerships, individuals and trusts.

Economic And Monetary Stability

Investors are also attracted to the stability of the economy, which is steadied by the solid value of the Bahamian dollar.
This currency is pegged to the US dollar on a 1:1 ratio. US dollars and Bahamian dollars are used interchangeably throughout the island chain.

No Exchange Controls / Free Repatriation Of Profits

In accordance with terms of the International Monetary Fund Agreement, The Bahamas has no restrictions on current account transactions. Additionally, there are no restrictions on the free repatriation of profits. Exchange control is administered by The Central Bank. The Bank, however, delegates to authorized dealers the authority to approve allocations of foreign exchange for certain payments.

The Bahamas Investment Authority

The Bahamas Investment Authority (BIA) guides the government's proactive economic growth and development policies. The BIA was established to "cut red tape and lay out the red carpet" for investors. Operating from the Office of the Prime Minister, the BIA has been designated a "one-stop shop' designed to simplify investing in The Bahamas.

Accessible International Financing

The Bahamas is associated with organizations that ease access to financing and provide important safeguards for investors. The U.S. Government's Overseas Private Investment Corporation (OPIC), for example, makes direct financing and loan guarantees available to foreign investors. The Multilateral Investment Guarantee Agency is a World Bank unit and parent of the Multilateral Investment Guarantee Convention, which provides protections similar to those of OPIC'S. The Bahamas also recently agreed to become a party to the convention on the settlement of investment disputes.

Flexable Imigration Policy

Necessary work permits for key personnel are readily granted. Businesses requiring work permits for other than key personnel are encouraged to advise of their needs at an early stage of their discussions with The Bahamas Investment Authority.

Owning A Piece For Paradise

Foreign nationals are encouraged to acquire residential properties in The Bahamas. Underscoring the new attitude towards investors, the government repealed the Immovable Property Act, which required prior approval for the purchase, transfer or inheritance of real property by non-Bahamians. It has been replaced by the International Persons Landholding Act, 1994. The new act considerably cases the process of foreign ownership of homes and real estate.

Prior government approval is not required for non-Bahamians to purchase residential properties of less than five acres. Acquisitions over five acres must be registered with the Investments Board and the Central Bank. The new act has begun to fuel the revival of the second home market in The Bahamas and makes the assets of The Bahamas more accessible to those who enjoy living and/or doing business in paradise.

Accelerated consideration for annual or permanent residences is given to major investors and owners of residences valued in excess of $500,000. All international persons owning residences in The Bahamas are eligible to receive, upon application to the Director of Immigration, a "Home Owners Card". The card does not provide residency status for tax purposes; however, it facilitates entry into The Bahamas and entitles the owner, his/her spouse and minor children to enter and remain in The Bahamas for the duration of the validity of the card.

Extensive International Airlinks

Six major airports in The Bahamas are served by various international airlines, including Delta, Carnival Airlines, AOM, British Airways, Air Jamaica, and American Eagle that fly to key destinations in Europe, North and South America and the Caribbean with connections around the globe. Scheduled domestic services by the national airline, Bahamasair, link the island chain, while also providing scheduled service to Florida. Charter services are available to all parts of the archipelago.

Modern Telecommunications

Telecommunication services in the islands are state-of-the-art. Instantaneous direct international links are provided through a 100 percent digital switching system. International telex, cellular telephone, facsimile, automatic radio paging and private line services are all available. The 3,500 kilometer road and highway system in The Bahamas is well developed and is constantly being upgraded.

A Crossroads For International Shipping

Twenty-three seaports dot The Bahamas, allowing for regular shipping connections to the Americas and Europe. The ports in Nassau and Freeport are major international transshipment centers servicing both tourism and commerce.

Modern And Extensive Medical Facilities

In New Providence, The Princess Margaret Hospital provides a wide range of specialist facilities. There are also two smaller private hospitals, Doctors Hospital and Lyford Cay Hospital which also offer specialized state-of-the-art medical treatment. In addition, hospital facilities exist in Freeport and numerous clinics are located throughout the Commonwealth. Resident medical doctors provide health care in the Family Islands.