Permanent residence in the Bahamas through investment in a local business

Permanent residence in the Bahamas through investment in a local business

Investing in business will allow a non-resident to obtain permanent residence in the Bahamas and live in a country with a minimum of taxes, a tropical climate and a peaceful environment. In general, the islands are considered by many to be a paradise for international business investment. There is a truly ideal and stable investment climate here, specially created by the government to facilitate, simplicity and efficiency of doing business in the Bahamas. A stable economic and political situation, modern infrastructure, a professional and skilled workforce, policies to stimulate investment, proximity to key markets - all this attracts international investors. In addition, investments in local businesses from 1.5 million US dollars allow the investor to quickly obtain permanent residence in the Bahamas, and settle there among other rich people, world stars and millionaires.

The Bahamas is a small but actively developing country with an open economy and programs aimed at attracting direct international investment. In addition, investor confidence is underpinned by economic, fiscal and monetary policies.

In addition to the opportunity to quickly obtain permanent residence in the Bahamas by investing in local businesses, there are a number of legislative incentives and concessions that cover the tourism sector, industrial and agricultural development, and the creation of timeshare facilities. These incentives include the absence of restrictions on operations with the current network and on the repatriation of profits, the availability of land, concessions on customs duties on the import of construction, raw materials and industrial equipment, exemption from real estate taxes for a certain period.

Residence in the Bahamas through Local Business Investment - Benefits and Government Incentives

Investing in a local business in order to obtain permanent residence in the Bahamas with further profit is a good incentive for non-residents. But it is also worth noting the other most obvious reasons why you should pay attention to this jurisdiction of the Caribbean region:

  • Advantageous geographical location.
  • English speaking environment.
  • The neutral status of the country.
  • Favorable climate.
  • Financial incentives.
  • Low taxation.

In more detail about the possibility of obtaining permanent residence status in the Bahamas through the purchase of real estate: "Residence in the Bahamas for investment - from 25,000 US dollars."

According to the World Bank's Business Report, the Bahamas is ranked 106th in terms of ease of doing business, and 31st in the Heritage Foundation's Index of Economic Freedom. The Government of The Bahamas is making every effort to improve these rating positions - they implement fiscal policy, provide freedoms for business, trade and investment.

Those wishing to invest in local businesses in order to obtain permanent residence status in the Bahamas can feel the government incentives in the form of exemption from customs duties. For example, these include the Law on the Promotion of Hotels, the Law on the Promotion of Industry, the Law on the Promotion of Export Manufactures. In addition, there is effective government enforcement of intellectual property rights.

Bahamas residency by investment - what you need to know about the Bahamas Investment Authority (BIA)?

Many investors, especially those who are just starting out in this very interesting and profitable business, try to follow standard money management methods, and, as a rule, prefer trendy and promising areas of investment. This applied at one time to oil assets, then to the newly emerging Internet companies (early 2000s), now again various representatives of the high-tech sector are of interest, etc.

While not at all pleading with the prospect of investing money in such promising assets, nevertheless, one should not forget about the traditional and, it seems, long-forgotten sectors of the economy. In those industries in which the inquisitive eye of the investor can find no less unique opportunities than in various start-ups and innovative sectors.

A special place in this list is occupied by the hospitality industry, including the hotel business. This undeservedly forgotten format of investment and business, despite its long history of several thousand years (as soon as people began to travel), is just as in demand in our time, and has every chance of becoming one of the most attractive investments for many decades to come. This is primarily due to factors such as, for example:

  • an increase in the mobility of the world's population, which clearly contributes to an increase in demand for hotels, both for leisure and business travel
  • standardization of hotel chain services forms a certain quality system guaranteed anywhere and anytime for consumers
  • attraction to the high-tech sector facilitates direct customer access to hotel services, from online booking to personalized service at the hotel itself
  • the emergence of more and more non-standard formats of hotel services, such as, for example, family hotels, village tourism, etc.

This article will tell you about some aspects and features of investing in the hotel business, both in global practice and in Russian conditions. Information will also be given on how to invest in the hotel business in practice, using modern investment technologies.

Hotel business - global trends and Russian specifics

From an investor's point of view, the analysis of the possibilities of investing their capital in the hotel business can go in two directions:

  • The first is the geographical features of the hotel business
  • The second is the analysis of hotel technologies at the present stage and taking into account the near future.

If we talk about the first direction, it does not seem at all surprising that European hoteliers continue to set the tone for the entire hotel business in the world. Moreover, the main legislators of the hospitality industry are the countries of southern Europe (Spain, Italy, France, etc.), as the most priority areas for the acquisition, foundation and operation of the hotel business.

The southern region of Europe is characterized by an increased optimal ratio of price/quality of services, inbound flow and investment in the hotel industry. This is due to the low prices of commercial real estate. The favorable climate and the sea coast guarantee substantial incomes for hotel owners.

For example, a small hotel in Spain (see Buying Property in Spain) potentially generates about 300 thousand euros in net income per year. In addition, in European countries, you can purchase the rights exclusively to do business, which eliminates the need to buy fixed assets, i.e. the property itself.

The cost of the law is in the region of 350 thousand euros, in the amount of rental rent of about 50 thousand euros per year. Additionally, in Europe, lending to promising business areas is being actively implemented on terms favorable to a merchant (with a reduced interest rate).

If we talk about the second direction, then among the standard formats of hotel services, exclusive types of hotels and services are gaining more and more popularity, for example, such as:

Why are investments in the Georgian economy so attractive for many foreign investors, especially recently? Let's try to find out the reasons in this article. Special attention should be paid to the possible risks associated with this procedure and guarantees that are provided to protect foreign investments by the legislation in force in the country.

Investments in the Georgian economy Inflow statistics

The economy in the country today is almost completely liberalized and is the owner of the most favorable conditions for foreign investment in the region. This is evidenced by the statistics of the inflow of foreign investments into the states of Eastern Europe. It is interesting that their size has recently been constantly increasing only in Georgia, while in other Caucasian countries they are only decreasing every year.

Georgia's economy ranks 9th in the ranking of countries in terms of ease of doing business. This is precisely the information found in the World Bank's World Business Report 2018. This figure is much higher compared to last year, when the country was ranked 16th. Investment inflows to Georgia's economy during 2016 reached $ 1.661 billion, while outflows amounted to $ 232 million over the same period, according to the 2017 World Investment Report. Investments in the Georgian economy are focused on transport, infrastructure, tourism and finance.

The following table contains data illustrating the dynamics of investment inflows into the Georgian economy for three years (2014-2016), as well as indicators related to this value. The information is in accordance with the latest available data from the UN General Assembly body UNCTAD (United Nations Conference on Trade and Development).

Investments in the Georgian economy 2014 015 016 Internal FDI flows (US $ million) 157616611763 FDI stocks (US $ million) 128501285414109 Number of investments in Greenfield (green fields) 111421 FDI index (% of WFOK) 41,339,641.4 FDI stocks (% of GDP) 77,891,899.2

Foreign direct investment (FDI) stocks measure the overall level of direct investment at a given point in time, usually at the end of a quarter or year. External FDI stocks represent the value of residents' own investment and net loans to enterprises in foreign countries. Incoming FDI stocks represent the value of foreign direct investment by investors and net loans to businesses in the reporting economy. FDI stocks are measured in US dollars and as a share of GDP (latest value). FDI stocks create stable and long-term links between economies.

As we can see, investments in the Georgian economy in the "green fields" have been constantly increasing in recent years. Greenfield is a form of foreign direct investment where a parent company starts a new venture in a foreign country, creating new operating opportunities from scratch.

The Domestic Investment Efficiency Index reflects the country's relative success in investor interest in investing in the Georgian economy. Based on the ratio of a country's share in global foreign investment inflows to its share in global GDP. WFOK - Gross Fixed Capital Formation. Measured by the cost of additions to fixed assets acquired by businesses, governments or households to reduce the expense of property, plant and equipment.

Of the countries where most of those who want to invest in the Georgian economy, we note Azerbaijan. It is he who is the largest investor in the country in connection with the construction of the Shah Deniz gas pipeline. In the first six months of 2017, investments in the Georgian economy by representatives of Azerbaijan amounted to USD 378 million.

The travel and tourism industry currently accounts for about a tenth of the world's GDP. This is evidenced by data from the World Travel & Tourism Council (WTTC). The statistics of this organization also suggests that the total turnover of the tourist services market is only growing every year. At the same time, experts make very rosy forecasts for the long term: the travel services market will continue to grow, creating additional jobs and helping investors to increase capital.

One of the most promising tourist destinations at the present time is the Caribbean region. For the small island states located on its territory, tourism projects are one of the main sources of financial income and a key tool for attracting investment. That is why the authorities of these countries are doing everything in their power to maximize the quality of service for tourists from abroad and create an extremely favorable investment climate in relation to initiatives related to the development of resorts.

Moreover, a number of Caribbean countries have adopted a very interesting mechanism for attracting investment in the tourism market, which boils down to selling passports in exchange for investing in local development projects. For example, at this stage, wealthy foreign businessmen, politicians and show business stars, if they wish, can obtain a second citizenship of Grenada through an investment in the luxury resort Mount Cinnamon Resort & Beach Club.

This article focuses on hotel investment abroad in general and in the Caribbean in particular. From it you will learn about the most promising investment projects that allow you not only to profitably manage your finances, but also to receive extremely interesting dividends in the form of an opportunity to obtain a second citizenship of Grenada, Saint Kitts and Nevis, the Commonwealth of Dominica or Antigua and Barbuda - both for yourself and and for your whole family.

Why invest in the tourism sector?

According to WTTC data, direct contribution of the travel and tourism industry at the end of 2014

in the world gross domestic product (GDP) and employment amounted to $ 2.4 trillion. and 105 million jobs, respectively. If there are indirect effects, the total contribution of this industry to the world economy last year amounted to $ 7.6 trillion, which corresponds to 9.8 percent of the total GDP for 2014. At the same time, this industry, thanks to direct and indirect effects, now supports a total of 277 million workers. This is almost twice the population of Russia.

Over the past year, the sector has directly helped create a total of 2.1 million new jobs. Another 4 million new jobs were created due to indirect effects. The total contribution of the travel and tourism industry to global employment growth in 2014 increased by 2.3 percent, while the total industry contribution to global GDP grew by 3.6 percent.

At the same time, experts are registering positive dynamics in the context of both indicators for the 5th year in a row. This proves that the travel and tourism industry is a key driver for the continued growth of the global economy and an essential tool in terms of job creation.

What predictions do the WTTC experts make for 2015? According to their estimates, the total contribution of the travel and tourism industry to world GDP will grow by 3.7 percent. And this despite the fact that the growth rate of the world economy at the end of the current year should leave “only” 2.9 percent. At the same time, the turnover of domestic tourism markets will grow faster than national GDP in more than 90 countries.

The average growth rate of spending on domestic tourism in the context of 184 countries covered by the WTTC study is projected at the end of 2015 at the level of 3.7 percent. In 2014, this figure increased by 3.1 percent. At the same time, the total volume of investments in this sector will also increase. It will grow from 3.9 percent at the end of 2014 to 4.8 percent at the end of 2015. The travel and tourism industry is also expected to help create a total of 7.2 million new jobs in 2015 (2.1 million new jobs will be created directly in this sector).

While considering the world practice on state regulation of tourism in various countries, it should be noted that they can all be divided into two groups:

The first group includes countries that have an independent executive body responsible for tourism. At the same time, in the countries belonging to this group, the Ministry of Tourism, with all the diversity of its departments and departments, resembles a government in miniature, it has tax, investment departments, a property management department, departments of vocational education, economics and statistics, certification, licensing ... The executive body managing the tourism industry must establish relations with the ministries of economy, foreign economic relations or foreign trade, culture, education, agriculture and transport. At the same time, the governments of the countries where the state tourism management bodies operate, delegate to them exclusive powers to resolve issues related to the regulation of tourism activities, the promotion of the country as a tourist destination, issues of professional training, etc. ...

The first group also includes countries in which tourist administrations are part of the ministries of economy, industry, transport, and trade. So, separate structural divisions, endowed with great competence and included in other ministries, exist in Italy, Tunisia, Cyprus, Spain.

The second group includes countries where the functions of the state in the field of tourism are dispersed in different government bodies. The second group of countries is characterized by the absence of a clear tourism policy, duplication of functions by several executive authorities, and the vagueness of issues of competence and functions in the field of tourism. These countries include the Russian Federation and Kazakhstan. In general, tourism in these countries is developing slowly and is not a leading sector of the economy.

Tourism is known to be one of the most profitable businesses in the world. According to WTO estimates, by 2013 the number of international tourist trips will amount to 937 million, and tourism receipts will increase to 1.1 trillion. US dollars.

Tourism development influences the creation of new jobs. So, if in 1998 about 115 million people were employed in the world tourism industry, then in 2010 there were already 310 million people.

When studying the experience of legal regulation of states where tourism is most developed, I would like to note that the success of tourism development directly depends on how this industry is perceived at the state level, to what extent this industry enjoys state support.

The state programs for stimulating inbound tourism developed in a number of countries provide for tax benefits, simplification of border and customs regimes, creation of favorable conditions for investment in tourism, an increase in budgetary allocations for infrastructure development, advertising in foreign markets, and personnel training.

An example of such a country is Turkey, which gives benefits to local and foreign investors and tour operators. Thanks to financial support from the state and local authorities, the tourism industry in Turkey is booming. So, if in 2002 the number of tourists amounted to 6.7 million people, then in 2009 this figure reached 9.2 million, and the income for the year amounted to 8 billion 300 million US dollars.

At the same time, in order to receive budget revenues from the tourism industry, any civilized state must invest in the study of its territories to assess the tourist potential, prepare programs for the development of tourist business, projects of the necessary infrastructure of resort regions and tourist centers, in information support. The private business sector will never be able to cover the needs for large investments for the development of resort, hotel and other tourism enterprises, as well as the main elements of the tourism infrastructure, and is unable to fulfill the individual functions of the National Tourism Administration. In all strong tourist powers there are such organizations, subordinate, as a rule, to the ministries that are involved in the development of national tourism development programs, they are called differently: in the UK - BTA (British Tourist Authority), in Ireland - the Irish Board, in Spain - Turespana , in Italy - ENIT, in Norway - NORTRA, etc.

It is they who maintain tourism offices in other countries, develop programs that attract tourists and provide the flow of tourist information. The specificity of tourism is associated with the international character and a wide range of relationships that have to be entered into by persons involved in one way or another in the organization of recreation and travel. The variety of these relations gives rise to a certain complexity of legal regulation.

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