How do you obtain permanent residency?

The main route is the Economic Permanent Residence Certificate. It requires an investment of at least USD 1 million, a threshold increased on 1 January 2025 from the previous level, invested in approved real estate or zero-coupon bonds issued by the Central Bank.

An important condition applies: the investment must be maintained for at least ten years, which ties up capital for a substantial period and must therefore be incorporated into your wealth-planning strategy.

An expedited processing route is available for investments above a higher threshold, which can be a genuine advantage given ordinary processing times.

A separate and lighter annual residence permit is also available to residential property owners, but it does not confer the same rights.

What is the actual cost of living?

It is high, and this is the main factor that prospective residents tend to underestimate.

The archipelago imports almost everything it consumes and applies substantial customs duties, in addition to a 10% value-added tax (Bahamas Department of Inland Revenue).

Food, consumer goods and vehicles are priced significantly above European levels.

Electricity is expensive.

Home insurance is a significant expense given the archipelago’s exposure to hurricanes, and premiums have increased in recent years.

Private school fees and medical travel to Florida complete the picture.

A relocation to the Bahamas can therefore consume a significant portion of the tax savings achieved through its cost of living, depending on the level of income concerned.

This calculation should be made before the move, not afterwards.

Should hurricane risk be factored into the decision?

Yes, and in practical rather than abstract terms.

The archipelago lies in an area exposed to hurricanes, and some islands have suffered major damage over the past several decades.

Three practical consequences follow.

The choice of island and the precise location of the property matter, as levels of exposure vary significantly.

Construction quality and compliance with resistance standards affect both the safety and insurability of the property.

And the rising cost of insurance must be budgeted over the long term rather than estimated from an initial quotation.

Where the acquisition of real estate is itself the condition for obtaining residency, these factors cease to be matters of comfort and become elements of status protection.

Where should you start on the French side for a Bahamas project?

The Bahamas are outside the European Union, and the exit tax requires careful modelling of the conditions for payment deferral where you hold shareholdings exceeding the applicable thresholds.

One specific point must be systematically verified: the archipelago’s status with respect to the lists of non-cooperative jurisdictions maintained by France and the European Union, which have evolved over time.

Inclusion on these lists has real consequences, including increased withholding tax rates on certain French-source flows and stronger application of anti-abuse rules.

This status must be checked at the time of the project and never based on outdated information.

The two countries are also linked by a tax information exchange agreement.

What happens to my French life insurance policy after relocating to the Bahamas?

The policy is not terminated, but its treatment on death changes.

For amounts paid under premiums made before age 70, after an allowance of EUR 152,500 per beneficiary, a levy of 20% applies up to EUR 700,000, followed by a rate of 31.25% above that amount (Article 990 I of the French Tax Code).

This levy applies in particular where the beneficiary is resident in France or where the policyholder was resident in France at the time of death, making the location of your children a determining factor.

Relocating to the Bahamas therefore does not neutralise the French life insurance policy, and hastily restructuring the policy often costs more than it saves.

Can a move to the Bahamas be characterised as an abuse of law?

It can be if the arrangement is artificial, and this is a question that should be addressed frankly.

The French tax authorities have an abuse-of-law procedure covering fictitious arrangements or transactions seeking to rely on the literal wording of a provision in a manner contrary to the objectives pursued by its author, as well as a regime targeting arrangements whose principal purpose is tax-driven.

A genuine relocation, involving the transfer of your home, family and everyday life, does not fall into either category: expatriation is a right.

By contrast, a nominal residence combined with the continuation of your life in France is precisely the type of arrangement targeted by these rules.

It is the reality of the relocation that provides protection, never the sophistication of the structure.

How is dual residence between France and the Bahamas resolved?

It is not resolved by a tax treaty, and this is the particular difficulty associated with this destination.

The Bahamas are not among France’s treaty partners (list of tax treaties concluded by France): there is only a tax information exchange agreement, signed on 7 December 2009 and entering into force on 13 September 2010 (list of tax information exchange agreements).

There is therefore no hierarchical set of tie-breaker criteria, such as permanent home followed by centre of vital interests, to resolve the conflict.

Each country applies its domestic law, and there is no treaty mechanism to eliminate any resulting double taxation.

A move to the Bahamas therefore requires a clear break, rather than a situation divided between two countries.

What are the exact requirements for Economic Permanent Residence?

They are precise and are rarely reported accurately.

The Department of Immigration requires a minimum investment of USD 1 million, made either in Bahamian real estate or in zero-coupon bonds issued by the Central Bank, with the asset required to be held for at least ten years (Bahamas Department of Immigration).

The threshold was increased from USD 750,000.

Investments of USD 1.5 million or more in certain areas may benefit from expedited processing.

The application also requires a medical certificate, a police clearance covering five years of residence and two references from local prominent individuals.

How does the Bahamian government finance itself without personal income tax?

Through three channels, and this is reflected in the cost of living.

Value-added tax, set at 10% since 1 January 2022 after having been reduced from 12%, is the first source of revenue (Bahamas Department of Inland Revenue).

Customs duties, which are high in an archipelago that imports almost all of its consumption, constitute the second.

Property tax based on the value of real estate, from which foreign property owners are not exempt, completes the picture.

The actual budget of a resident is therefore built around these three items rather than around a personal income tax rate.

Does a permanent resident have the right to work in the Bahamas?

Not automatically, and this is a decisive distinction.

A permanent residence certificate may be issued either with or without the right to engage in paid employment, with the applicable status expressly stated on the certificate (Bahamas Department of Immigration).

An investor who obtains a certificate without this right cannot work as an employee locally or practise a regulated profession in the Bahamas.

This distinction determines how your business activity should be structured: an entrepreneur intending to continue working must either obtain the relevant authorisation or organise the activity outside the territory, which then raises the question of where the service is actually performed under French law (BOFiP, Article 155 A of the French Tax Code).

Is the cost of home insurance really an issue?

It is the most underestimated item in the budgets we are shown.

The archipelago lies on an active hurricane path, and residential property insurance premiums have risen sharply in recent years, particularly for waterfront properties.

Certain areas face insurability difficulties, with high deductibles for wind and storm-surge risks.

This factor affects the choice of island, the quality of the property’s construction and its exposure.

For a real-estate asset worth USD 1 million that must be held for ten years as part of the permanent-residence requirement (Bahamas Department of Immigration), this recurring cost has a lasting impact on the return generated by the arrangement.

Is there a residence card for property owners?

Yes. A separate annual permit is available to owners of residential property in the archipelago.

It facilitates entry and stays for the owner, as well as for their spouse and minor children, but it confers neither permanent status nor the right to work (Bahamas Department of Immigration).

Nor is it sufficient to establish tax residence enforceable against France, which depends exclusively on the criteria set out in Article 4 B of the French Tax Code (BOFiP, taxable persons and tax residence).

It is an interesting solution for a second home or seasonal use, but not for expatriation.

We present it as such because the distinction is frequently misunderstood.

Do the Bahamas now tax companies?

Only very large groups, and only recently.

The archipelago has introduced a minimum tax applicable to multinational groups exceeding the revenue threshold established under international minimum-tax rules, in order to maintain compliance with OECD standards.

Ordinary-sized local businesses and individuals are not affected: there is still no personal income tax, no capital gains tax and no inheritance or gift tax (Bahamas Department of Inland Revenue).

This development follows the approach taken by Bermuda and illustrates a broader trend: zero-tax jurisdictions are adapting their regimes for large multinational groups while preserving their existing framework for individuals.

How does Coreway Consulting support a relocation to the Bahamas?

We first verify the archipelago’s status with respect to the applicable lists and quantify any potential consequences for your retained French-source income.

We then assess the required investment from both a wealth-planning and regulatory perspective: USD 1 million tied up for ten years should be invested in an asset you would have selected in any event, rather than treated as an entry ticket.

We manage the residence application, the real-estate acquisition and the due diligence relating to climate exposure and insurability with our local correspondents.

The termination of French tax residence and the exit tax are addressed upstream, together with the relevant advisers.