Bahamas Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in bahamas, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Overview
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Market Overview

Stable Democratic Government

The Bahamas is a peaceful, stable democratic nation with a strong focus on the rule of law and investor security:                                                                                            

  • Tax Relief: The country does not levy personal income tax, general corporate tax, capital gains tax, or wealth tax, creating a favorable business environment. However, in 2024, the government introduced a 15% corporate income tax on the largest multinational enterprises (MNEs) with consolidated revenue above €750 million, in line with international tax reforms. 
                                                          
  • Tourism and financial services are the main economic drivers: Tourism is the backbone of the Bahamian economy, generating about 70% of GDP and employing more than half of the workforce. In 2024, the country welcomed about 11.2 million visitors, with roughly 85% arriving from the United States.  In 2025, visitor arrivals are projected to reach at least 10 million, with optimistic forecasts suggesting as many as 12 million, reflecting continued strength in both cruise and air segments.  Financial services remain the second-largest sector, contributing 15–20% of Gross Domestic Product (GDP). Unemployment is steady at about 8.8%, underscoring the reliance on tourism as a major job provider. To reduce dependence on tourism and finance, the government is actively promoting diversification. Priority sectors include renewable energy, light manufacturing, agriculture, fisheries, technology, and the expansion of small and medium-sized enterprises (SMEs).  Grand Bahama, home to the Freeport Free Trade Zone, has the most diversified island economy and hosts many U.S.-owned businesses.
                                                                                                                                              
  • Economic Performance: The World Bank recognizes The Bahamas as a high-income country, though income inequality remains a concern. Nominal GDP reached about $14.39 billion in 2024, with GDP per capita at $39,455, and real GDP growth slowed from 4.3% in 2023 to around 1.9% in 2024 due to global headwinds, higher borrowing costs, and inflationary pressures. Unemployment remains stable at about 8.7%. Public debt, though still elevated, declined from 78.8% of GDP in FY2024 to an estimated 72.9 % by early 2025, supported by fiscal consolidation measures that narrowed the deficit from 3.8 percent of GDP in FY2023 to 1.3 percent in FY2024.  Revenue performance also improved, with collections nearing 20 percent of GDP with a government target of exceeding 22 percent in FY2024/25.  International credit agencies maintain speculative-grade ratings, but with stable or improving outlooks—Moody’s (B1, Positive, April 2025), S&P (B+, Stable, September 2024), and Fitch (BB-, Stable, April 2025)—reflecting moderate creditworthiness supported by ongoing reforms, though underscoring the need for continued debt reduction and diversification beyond tourism.
     
  • Economic Outlook: The Bahamas is anticipated to record moderate but steady growth in 2025, underpinned by tourism, foreign investment, and government-led infrastructure initiatives. Real GDP growth is projected at around 1.7–1.8 percent, following 1.9 percent in 2024, marking a slowdown from the post-pandemic rebound.  Public debt remains high but is on a downward trajectory, declining from about 78.8 percent of GDP in FY2024 toward the government’s medium-term target of reducing debt below 50 percent of GDP by FY2031. The government continues to promote a pipeline of investments in renewable energy, airport and port modernization, digital infrastructure, and agriculture to drive diversification and resilience. Key vulnerabilities include exposure to weather-related risks, global demand volatility, and the need to strengthen competitiveness in the regional tourism market. Sustained fiscal discipline, structural reforms, and targeted investment in emerging sectors will be critical to securing long-term growth and stability.
     
  • Close ties to the United States: The United States and The Bahamas share deep political, economic, and cultural ties.  English is the official language, and - with a population of approximately 400,000, The Bahamas maintains extensive air, maritime, and communications links to the United States.  There are approximately twenty-five daily flights between The Bahamas and the United States.  U.S. Customs and Border Protection operate a pre-clearance facility in Nassau which streamlines travel for millions of visitors each year. Around 85 percent of the more than 11 million tourist arrivals in 2024 came from the United States, underscoring the importance of this relationship.
     
  • Trade preferences are available: The Bahamas is a member of the Caribbean Community (CARICOM), a beneficiary under the United States’ Caribbean Basin Initiative (CBI) and the Caribbean Basin Economic Recovery Act (CBERA), and Canada’s CARIBCAN Program.  The country is also party to the Economic Partnership Agreement (EPA) between the European Union and the countries of the Caribbean Forum (CARIFORUM) and the EPA between the United Kingdom and the countries of CARIFORUM.  These agreements provide preferential access for goods produced in The Bahamas to most major markets, which benefits American investment in the export economy.  The Bahamas National Trade Policy drafted in 2022 focused on managing imports, expanding exports, diversifying exports, and strengthening domestic competitiveness, as well as leveraging opportunities from existing trade agreements and preferences, including 

CBI and CBERA

The city of Freeport on the island of Grand Bahama is a 233 square mile Free Trade Zone.  The Hawksbill Creek Agreement (1955) between the Bahamian government and the Grand Bahama Port Authority (GBPA) - a privately owned organization that oversees the city of Freeport - guarantees that the “special economic zone” can continue to exist until 2054. Businesses operating in Freeport are exempt from most central government taxes (real property, excise, import, and business taxes) and subject to licensing by the GBPA. Additionally, in the aftermath of Hurricane Dorian in 2019, both Abaco and Grand Bahama were declared Special Economic Recovery Zones (SERZ), which allows residents and businesses to benefit from several additional tax exemptions through 2025. 

Strong U.S. market share: The United States remains The Bahamas’ principal trade partner with 83.3 percent of imports coming from the United States. United States exports to The Bahamas in 2024 were valued at $5.48 billion, resulting in a $3.7 billion U.S. trade surplus. Most Bahamians are familiar with American products given frequent travel to the United States and access to U.S. cable TV. Other main trading partners include China, the United Kingdom, Japan, Panama, Switzerland, Canada, and France.  

Political Environment 

For background information on the political and economic environment of the country, please click on the link to the U.S. Department of State Countries & Areas website.

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