The Bahamas Hotel Encouragement Act

How To Obtain Benefits Under the Act

For the benefits under the Act to be realized an individual or company must make application to The Permanent Secretary, Office of The Prime Minister.

Each application will be considered upon its own merit,therefore it is very important that an investor take the following steps in order to comply with specific requirements of the Act.

The following steps need not be done in the presented order, however, it is recommended simultaneously, the steps are:

  • Apply to the Office of The Prime Minister to enter into an agreement under the Act.
  • The proposal should be in the form of a formal letter to the Ministry, addressed to the Permanent Secretary .
  • This letter will be considered as a proposal to enter into an agreement with the Government.It should also contain the item and cost of the entire project, and for those which the investor expects customs exemption.
  • Submit plans to the Department of Physical planning of the Ministry of Works to obtain an Approval in Principle.
  • Obtain a building permit
  • The Building Permit must be obtained from the Ministry of Works which will review the plans and provide the permit once it meets their specifications.This proccdure applies to new hotels as well as those that is being rehabilitated or renovated.
  • These plans will then be discussed with the Ministry of Works and the Ministry of Health by the Office of The Prime Minister to determine if an approval will be granted.

Please contact Evans Business Consultant Services for more in dept details at 242-676-1179 or by email at ellion@coralwave.com.

The Bahamas Hotel Encouragement Act

Benefits (Incentives) Available to Investors in The Bahamas

An investor that is desirous of investing in The Bahamas by constructing and operation a hotel will qualify for the following:

* The right to Customs Duty Exemption

Exemption from the payment of customs duties in respect of all the required materials that is necessary for the construction, equipping and the furnishing of a new hotel in order for that facility to be open for business.

These benefits are also allowed for the renovating, re-equipping and the extension of an existing hotel operation or for one that did not come into existence under the Act.

*Right to Import Construction Plant

This concession extends the right to import the construction plant, which is inclusive of  machinery, free of duty on a Customs bond, with the obligation to re-export it by a given date.

*Tax Exemptions

A ten-year exemption from Real Property Tax with a minimum taxation per bedroom of $20.00 beginning in the eleventh year until a twenty year period occurs starting from the date that the hotel was opened.

A twenty year exemption from direct taxation on hotel earnings is granted.

*Other Concessions

The same restrictions, regulations or conditions which are applied to one hotel will be applied to other hotels,this levels the playing field.

All matters regarding hotel the type of hotel and location must meet the requirements that has been established by The Bahamas Government.

For further inquiry please contact us at Evans Business Consulting Services at 242-676-3223 or by email at ellion@coralwave.com. How To Obtain These Benefits will be the topic of our next blog.

The Bahamas Investment Authority

The Bahamas Investment Authority(BIA), is an arm of the Office of the Prime Minister which deals with all matters concerning foreign investment approvals in The Bahamas.

This unit is mandated to remove the “red tape” so that potential investors may have a very comfortable experience from the inquiry stage of their plan to invest until an approval is either granted or denied. Approvals are not automatic.

Potential investors in The Bahamas, whether they are  Bahamian or non-Bahamian must go through the same approval process. They must submit a proposal to the Authority for consideration which is presented through the vetting of the National Economic Council (NEC) if the proposal involves any of the following:

*Non-Bahamian participants

*The use of Foreign Capital

*Application for Government concessions, particularly those that come under the Hotels Encouragement Act, and the Tariff Act and the Industries Encouragement Act

*Long lease and or the purchase of immovable property by foreign concerns or

*Transfer of shares to non-Bahamian.

We will discuss concessions available under the Hotel Encouragement Act next. Until then if you need more information please contact us a Evans Business Consultant Services at 242-676-1179 or by email at ellion@coralwave.com We can provide you with all the preliminary information required to lessen the application process. We are here to serve you in an effective and efficient manner without compromising.

Evans Consulting Services

Evans Consulting Services is dedicated to providing services to Bahamian businesses and foreign investors seeking to establish a business presence here in The Bahamas.

We provide services in Business Plan Writing, Foreign Investor Services, Advice on Bahamas Government Matters essential for doing business in The Bahamas, Website Construction and Design , Insurance Advisement, compliance Anti Money Laundering and Fraud Prevention Advice.

We know The Bahamas well; we were born and bred here; we know also how business functions and what is necessary to establish and operate a successful business here in The Bahamas. We have the knowledge, expertise and qualification to serve you efficiently and professionally.

We can be contacted at 242-676-1179 or by email ellion@coralwave.com

Investing in The Bahamas

The Bahamas is a very respected player in the international circles when it comes to tourism and financial matters.

The Bahamas presently is a hot spot for international investors, the multi billion dollar Bar Mar Hotel complex has change the investment landscape in The Bahamas.

The Atlantis billion dealer hotel complex on Paradise Island has started this revolution in attracting foreign investment into The Bahamas. The Bahamas family islands are very unique and investors might just find an investment gem in one of them.

 We at Evans Business Consultant Services can  advise you on matters regarding the applicable government requirements, advising you on the law and recommend reputable law and accounting firms that we are affiliated with and we can also perform feasibility research and market forecasting, prepare business plans etc.

If you are interested in doing business in The Bahamas we invite you to contact us so that we may provide our professional services as required. We may be contacted at 242-636-1179 or by email at ellion@coralwave.com