More capital required to invest in Bahamas

The start-up capital required for foreign investors seeking to engage in commercial activities in The Bahamas islands has been increased by 100 per cent as part of the government's effort to tighten immigration rules.

On Monday, Prime Minister Hubert Ingraham, speaking against the background of amendments to the country's national investment policy, told Parliament that the minimum dollar requirement for direct foreign investment in a commercial undertaking has been increased to US$500,000 from US$250,000.

In the statement, a copy of which has been obtained by the Financial Gleaner, Ingraham did not elaborate on the increase, but said further that amendments to the policy included the elimination of restriction prohibiting international investments in restaurants and or entertainment facilities such as theme parks, unless operated as part of a hotel resort.

The revised investment policy also provides that approved investors in major development projects which creates employment and business opportunities for Bahamian citizens and who own or acquire a residence in The Bahamas, may be granted permanent residency status with the right to work in their own business.

The prime minister said there were various examples, but singled out Gordon 'Butch' Stewart, chairman of Sandals Resorts International who owns Sandals Emerald Bay and other hotel properties in The Bahamas, and John Issa, executive chairman of SuperClubs, who owns Breezes Cable Beach in Nassau.

According to Ingraham, Stewart, Issa and others "are permanent residents with the right to work in their own businesses in The Bahamas. And that is an area that we say was reserved for Bahamians."

investment policies

He said "every effort has been made to ensure that the investment policy is expressed in as apolitical a way as possible, taking into account the reality that our investment policies generally reflect the time-honoured acceptance that the Bahamian economy is primarily driven by the tourism and financial-services sectors, areas overwhelmingly involving international participation and investment."

Amendment to the investment policy also include a requirement that foreigners applying for permanent residency will now have to spend upwards of US$1.5 million - instead of the US$500,000 that applied previously - to buy a Bahamian home to get fast-tracked by the immigration authorities.

Under the investment policy, permanent residents continue to be required to register all real property acquisitions with the Investments Board. "The fact that you are required to register it causes us to be in a position to know what non-Bahamian citizens own in our economy in terms of real estate," Ingraham said.

Non-Bahamians are also required to register owner-occupied property of two acres or less, and acquisition or more than two acres required a permit from the government. "You have to apply and the Investment Board reserves the right to say 'yes' or 'no' to any such application," the prime minister said.

He noted that while some people found it a nuisance to obtain a police certificate and a letter from the bank, among other documents to facilitate registration, the government was not inclined to remove those requirements.

business@gleanerjm.com