Retiring in the Bahamas: a complete guide
Discover everything about retiring in the Bahamas, including the cost of living, the best places to live, taxation details, healthcare, the housing market, and more.
Summary
Many seniors choose to retire in the Bahamas because it is a tax haven.
Retirees can gain residency by purchasing a property worth $500,000 or buying property and by applying for an Annual Homeowner’s Card.
The cost of living in the Bahamas is over 20% higher than in the US.
Seek expert financial advice to ensure you prepare adequately for your retirement.
What are the pros and cons of retiring in the Bahamas?
The Bahamas is a beautiful island destination that is highly appealing to many US citizens looking to relax in their golden years.
However, there are pros and cons to retiring in the Bahamas.
Pros of retiring to the Bahamas:
No language barrier: The country’s main language is English, so Americans and other English-speaking expats will have no trouble communicating.
Warm weather: The Bahamas has a warm, tropical climate with temperatures ranging between 78°F and 90°F.
Numerous activities: There are plenty of outdoor activities, national parks, entertainment, and fine dining.
Laid-back lifestyle: Retirees get to enjoy the relaxed, slower-paced island lifestyle.
Low tax rates and liabilities: Taxes are minimal.
Cons of retiring to the Bahamas:
High cost of living: The cost of living is approximately 21.8% higher than in the United States.
Mandatory healthcare costs: Retirees from other countries must purchase private health insurance because only citizens can contribute to the national healthcare insurance program.
Limited access: Travel is more challenging and expensive, and boats, ferries, and airplanes are the only options.
Hurricanes: The islands experience occasional tropical storms and hurricanes.
What are the best places to retire in the Bahamas?
The Bahamas is a magnificent place to retire and has a location to suit everyone.
Some of the best places to retire in the Bahamas include:
Paradise Island: The magnificent golf course will appeal to retired golfers, and the island has excellent restaurants, entertainment options, shopping centers, and exciting day activities, such as eco-tours
Nassau, New Providence: As the capital, it is a bustling city with a large tourist population. Retirees will appreciate being close to the major hospitals, and history buffs will love exploring the historical buildings.
Albany, New Providence: Those looking for security will enjoy Albany, a luxury gated community established by Tiger Woods and Ernie Els, which includes a championship golf course.
Eleuthera Islands: Those searching for a quieter lifestyle at a slower pace can find it in the Eleuthera Islands, which have pink sandy beaches and a minimal tourist population.
What age can you retire in the Bahamas?
The retirement age in the Bahamas is 65, although seniors can claim a reduced benefit from the age of 60.
To claim retirement benefits, a person must have contributed 150 payments to the scheme since its inception in 1974.
What is the average cost of retirement in the Bahamas?
Although it is easy to emigrate to the Bahamas and get residency by buying a property of $500,000+, retirees should consider the additional costs.
When buying property, owners must pay additional costs, such as legal fees, stamp duty, and some property taxes.
The cost of living is higher than in the US, by 21.8% without rent and 16.7% including rent.
Groceries cost 10.6% more, and restaurants are 25% more expensive. Utilities, sports, and entertainment also cost much more.
Do you pay taxes after retirement in the Bahamas?
Citizens of the Bahamas don’t pay income taxes, gifts, inheritance taxes, or capital gains taxes.
The same is true for retired people.
What programs are there for emigrating to the Bahamas?
The Immigration Act of the Bahamas states that high-net-worth investors can purchase property for $500,000 or more to make them eligible for permanent residency. This also entitles spouses and children to live there, making emigrating to the Bahamas a potential family endeavor.
Alternatively, a person looking to retire in the islands can purchase a property and apply for an Annual Homeowner’s Card, which costs $500. This also allows the entire family to reside in the Bahamas for the year.
What visas do I need to retire in the Bahamas?
People wanting to retire in the Bahamas can simply purchase property as outlined above.
However, if they want to gain citizenship, they will need an original Police Clearance Certificate, a certified copy of their passport, proof of their net wealth, a medical certificate, two personal referees, a certified copy of their marriage certificate, and a copy of their birth certificate.
What are my healthcare options in the Bahamas?
The National Health Insurance Authority provides basic care, but expats should invest in private healthcare insurance to cover additional necessities.
Many people who retire in the Bahamas buy international insurance, which covers them on the island and when traveling. Grand Bahama and New Providence have a few hospitals offering quality care.
There are also clinics on some of the smaller islands.
Is it safe to retire in the Bahamas?
Although the US State Department issues tourists to the Bahamas with a Level 2 advisory, the Royal Bahamas Police statistics declare a 26% drop in crimes against people and a 21% drop in crimes against property between 2022 and 2023.
The Bahamas is generally considered safe to retire.
What is the housing market in the Bahamas?
Housing prices in the Bahamas vary according to location, size, and the degree of luxury.
The average price in the general housing market lies between $300 and $500 per square foot.
The luxury market ranges between $750 and $2500 per square foot.
| Area in the Bahamas | Average Price |
|---|---|
| Nassau | $721,340 |
| Exuma | $749,000 |
| Grand Bahama | $272,420 |
| Long Island | $162,000 |
What happens to my retirement benefits if I retire in the Bahamas?
US citizens will continue to receive their Social Security payments when they retire in the Bahamas.
American expats must still pay US-based tax on their 401(k)s and IRAs. These are tax-deferred, meaning withdrawals are taxable, even if they live abroad.
Is the Bahamas a good place to retire?
If you dream of spending your days in a tropical paradise with a lazy-paced life or you enjoy boating and outdoor activities, retirement in the Bahamas is an excellent option.
However, retirees in the islands must realize that there is a higher cost of living.
Let Unbiased match you with a financial advisor who can offer expert financial advice about retiring in the Bahamas and planning for your future.
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