Yes, living in the Bahamas as a US citizen is entirely possible, but staying longer than 90 days means applying to the Bahamian Department of Immigration for a residence permit, a work permit, or both. Tourism up to three months needs nothing more than a valid passport. Anything beyond that — retirement, remote work, a local job, or buying a home and settling in — runs through a specific permit category, each with its own fee schedule and paperwork. And no matter which route you take, your US tax filing obligations travel with you.
How Long You Can Stay Without a Permit
US travelers entering the Bahamas for tourism get up to 90 days automatically, with no visa required.1U.S. Department of State. The Bahamas International Travel Information You’ll need a valid passport, and immigration officers may ask for a return ticket and proof of sufficient funds. That window is useful for scouting neighborhoods, opening a bank account, and testing the cost of living before you commit.
What the 90 days does not allow is work of any kind, even remote work for a Bahamian employer. If you want to earn money from a Bahamian source or stay past the three-month mark, you need a permit before you begin.
The Annual Residence Permit
The most common path for Americans who want to live in the Bahamas without taking a local job is the Permit to Reside, usually called the Annual Residence Permit. It authorizes you to live in the country for one year and can be renewed indefinitely.2Bahamas Immigration Department. Permit To Reside You do not need a job offer or a business. Retirees, remote workers, and people living off savings or investments all qualify, as do spouses and dependents of Bahamian citizens or existing permit holders.
The annual fee is $3,000 per person plus $300 per dependent, on top of a $200 non-refundable processing fee.3Bahamas Immigration Department. Immigration Fee Scale Spouses of Bahamian citizens, full-time students, and retired long-term work permit holders pay reduced rates. After you submit a complete application, expect to wait 8 to 12 weeks before checking status with the Consultation Unit.2Bahamas Immigration Department. Permit To Reside
The application asks for the standard immigration form, a cover letter to the Director of Immigration, a passport copy, passport photos, a medical certificate dated within 30 days, a police certificate from the past six months covering five years of residence, a bank reference letter, and two character references. US-issued documents like police certificates and birth records need a state-level apostille before Bahamian authorities will accept them. You do not need additional attestation from the US Embassy once the state apostille is on the document.4U.S. Embassy in The Bahamas. Apostilles and Authentication of Documents
Permanent Residence
If you want to stop renewing every year, permanent residence gives you the right to live in the Bahamas for life, subject to revocation under certain circumstances.5Bahamas Immigration Department. Permanent Residence Requirements Checklist The application processing fee is $100.6Government of The Bahamas. Apply for Permanent Residence in The Bahamas
The fastest route runs through significant investment. Buying real estate or Zero Coupon Bonds from the Central Bank of The Bahamas worth at least $1 million, held for a minimum of 10 years, qualifies you for economic permanent residency. A home valued at $750,000 or more can speed up consideration, though it doesn’t guarantee approval.5Bahamas Immigration Department. Permanent Residence Requirements Checklist The document list mirrors the annual permit, with proof of property ownership and property tax payments added.
Working in the Bahamas
Whether you can work depends entirely on who’s paying you and where they are.
Remote Work Under BEATS
The Bahamas Extended Access Travel Stay (BEATS) program launched in 2020 for remote workers and students who want to live and work from the islands for up to 12 months without a traditional work permit. The original fees were $1,025 for professionals and $525 for students.7Bahamas Immigration Department. BEATS Press Release BEATS covers people working remotely for employers or clients outside the Bahamas. If your income comes from a Bahamian company, BEATS is the wrong permit; you need a standard work permit. Check current availability and fees with the Department of Immigration, as the program has evolved since its COVID-era launch.
Local Employment
Taking a local job requires a work permit from the Department of Immigration. Anyone working for more than 90 days needs an annual work permit; shorter engagements use a short-term permit.8Bahamas Immigration Department. Work Permit (New) The process is employer-driven. Your prospective employer must advertise the position in a nationally circulated newspaper for three consecutive days, obtain a Labour Certificate from the Department of Labour showing no qualified Bahamian is available, and file the application on your behalf.
Fees are steep and category-specific. Executive and senior management roles carry annual fees of $16,275, while professional positions like attorneys, engineers, and doctors cost $13,125 per year.9Bahamas Immigration Department. a href=”https://www.immigration.gov.bs/applying-to-stay/immigration-fee-scale/” target=”_blank” rel=”noopener”>Immigration Fee Scale Employers typically pay, though the contract can allocate the cost differently. Religious, educational, and charitable organizations may qualify for waivers.
Working without a valid permit is a criminal offense under the Immigration Act. Penalties include fines up to $3,000, imprisonment up to two years, or both, and the Minister of Immigration can order deportation.10Bahamas Immigration. Immigration Act This applies to any earning from a Bahamian source, not just formal employment.
Taxes on the Bahamian Side
The Bahamas imposes no income tax, no capital gains tax, and no inheritance tax on individuals. That’s the main financial draw. Two taxes will still affect most residents.
Real property tax rates depend on how the property is used. For owner-occupied homes, the first $300,000 of market value is exempt, the next $200,000 is taxed at 0.625%, and value above $500,000 is taxed at 1%.11Inland Revenue Department, Bahamas. FAQs – Real Property Tax Residential rentals, commercial properties, foreign-owned rentals, and vacant foreign-owned land face higher rates.
A 10% value added tax applies to most goods and services bought or imported into the Bahamas, including real estate transactions.12Department of Inland Revenue. About – VAT Because the country imports nearly everything, VAT compounds the cost of daily life.
Your US Tax Obligations Don’t Go Away
Moving to the Bahamas does not end your US federal tax filing. As a US citizen, you file annual returns regardless of where you live, on the same thresholds and deadlines as stateside residents.13Internal Revenue Service. US Citizens and Residents Abroad – Filing Requirements
The Foreign Earned Income Exclusion lets qualifying expats exclude up to $132,900 of foreign-earned income from US taxation for tax year 2026.14Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 To qualify you must meet either the bona fide residence test or the physical presence test (330 full days outside the US in a 12-month period). Because the Bahamas levies no income tax, there are no foreign tax credits to offset any US liability above the exclusion.
Two reporting requirements catch expats out. If your foreign financial accounts aggregate more than $10,000 at any point in the year, you must file an FBAR (FinCEN Report 114) electronically.13Internal Revenue Service. US Citizens and Residents Abroad – Filing Requirements Separately, FATCA requires reporting specified foreign financial assets above certain thresholds on Form 8938.15Internal Revenue Service. Foreign Account Tax Compliance Act (FATCA) Penalties reach $10,000 per violation for FBAR, with higher figures for willful noncompliance.
Social Security benefits continue without restriction. The Bahamas is not on the Treasury Department’s sanctioned or restricted list, so payments can go to a US bank or through international direct deposit.16Social Security Administration. Your Payments While You Are Outside the United States There is no totalization agreement between the two countries, so if you work locally and pay into Bahamian social insurance, you cannot combine those credits with US credits to qualify for benefits.17Social Security Administration. Status of Totalization Agreements
What It Actually Costs to Live There
The Bahamas is expensive by Caribbean standards, largely because nearly everything is imported. The Bahamian dollar is pegged to the US dollar at 1:1, so there is no conversion math.18Central Bank of The Bahamas. Derek Pinder The simplicity hides real sticker shock at the grocery store, where imported items routinely cost 30% to 50% more than their US equivalents after duty and VAT.
Housing costs vary by island and neighborhood. A one-bedroom apartment outside central Nassau might run $1,500 to $2,000 per month; three-bedroom rentals can hit $3,000 to $4,000 or more. Utilities are the surprise: electricity comes primarily from imported fuel, so monthly electric bills for a modest apartment commonly land between $250 and $400, with water and internet adding another $100 to $200. For higher earners, no income tax can more than offset elevated goods prices; for others, the math is closer than expected.
Foreign nationals can buy residential property without restriction, and ownership strengthens a residency application. Budget for 10% VAT on the conveyed price for properties above $100,000 (properties under that threshold pay stamp duty instead), plus attorney fees, title insurance, and registration.12Department of Inland Revenue. About – VAT Owner-occupied property below $300,000 in assessed value carries zero property tax.11Inland Revenue Department, Bahamas. FAQs – Real Property Tax
Healthcare and Its Gaps
The Bahamas has a National Health Insurance program covering primary care — preventive visits, routine checkups, and treatment for common conditions — at no cost at the point of care. Citizens and legal residents can register.19NHI Bahamas. Whats Covered – NHI Bahamas
The gaps matter. NHI does not cover emergency care, hospital inpatient stays, surgeries, chemotherapy, diagnostic imaging, prescription medications, dental care, or vision services.19NHI Bahamas. Whats Covered – NHI Bahamas Anything beyond a routine visit is out of pocket or through private insurance. Most expats carry international health insurance that covers hospitalization, specialist care, and medical evacuation to the US. Princess Margaret Hospital in Nassau is the main public facility; private clinics offer shorter waits and broader services.
Practical Logistics of the Move
Driving
The Bahamas drives on the left, a holdover from British colonial rule. You can drive on your US license as a visitor, but once you hold a residence permit you need a Bahamian driver’s license. First-time applicants must pass a written exam and a practical driving test, and the license is initially issued for one year. Non-Bahamians present their residence or work permit along with a passport and National Insurance card, and the license can be issued the same day if you pass.20Road Traffic Department. New Licences
Shipping Belongings and Vehicles
Household goods trigger customs duties that add up quickly. Furniture is taxed at 25%, clothing at 20%, and mattresses can reach 60%, plus a 1% processing fee and 10% VAT on the total landed cost including freight.21Bahamas Customs & Excise Department. Frequently Imported Items Returning Bahamian residents get a one-time $10,000 exemption on household effects; first-time foreign residents do not.
Vehicles are worse. Duty rates for passenger cars run 45% for engines between 1.5 and 2.0 liters and 65% for larger engines, plus a $250 environmental levy, the 1% processing fee, and 10% VAT on the entire landed cost. Electric and hybrid vehicles under $70,000 in value pay 10% duty, jumping to 25% above that. Used vehicles older than 10 years face an additional 20% levy.22Bahamas Customs & Excise Department. Frequently Imported Items Many expats find buying locally cheaper than shipping.
Pets
Bringing a dog or cat requires an import permit from the Bahamas Ministry of Agriculture and Fisheries and a health certificate signed by a licensed US veterinarian. The health certificate does not need APHIS endorsement.23Animal and Plant Health Inspection Service. Pet Travel From the United States to Bahamas Start the permit application well before your move, since processing times vary.