Simone Smith-Bean: The Bahamas is a very unique place besides the stability with government and our English-speaking environment. We have a very robust legal framework as well. And much like Cayman and Barbados, which they have their own unique programs, the Bahamas is really known for its streamlined application process and providing various opportunities investments.

Salman Siddiqui: Welcome to the Investment Immigration Podcast by Uglobal.com, with weekly in-depth interviews with the world's leading investment immigration professionals. Welcome to another episode of the Investment Immigration podcast, brought to you by Uglobal. I'm your host, Salman Siddiqui, and I'm talking to you from Berlin. Today we are going to focus on The Bahamas. Now, The Bahamas is an island country which is well famous for its beautiful beaches and the landscape. But we don't talk much about the residency by investment program there. So this episode is going to focus on that. We're going to try to find out what are the criteria to become eligible for that, especially for high net worth individuals. And also, does it make sense to maybe stay there for long periods where you can even get citizenship? Is that even an option? And we're going to talk about what kind of high net worth individuals is it suited for? Is it for everyone? Or it mainly makes sense for those who come from North America? Perhaps. So to discuss all of this, I have a very special guest in our show today. Her name is Simone Smith-Bean, she's the managing director of Smith Bean and Co, and she's based in the Bahamas. Welcome to the show, Simone.

Simone Smith-Bean: Thank you so much for having me.

Salman Siddiqui: So let's start with if you could provide me an overview of The Bahamas residency by Investment program and its key objectives.

Simone Smith-Bean: So the Bahamas Residency by Investment program is really designed to attract foreign investors and high net worth individuals who wish to obtain residency in the Bahamas. The key objectives include stimulating economic growth, attracting foreign capital and creating opportunities for Bahamians. The program offers a pathway to residency through investment in various sectors in the Bahamian economy.

Salman Siddiqui: Right. And this program has been there for quite some time… Or is it just like five years ago? if you could just tell a little bit of history as well.

Simone Smith-Bean: Sure. So the program has been around for a number of years. The government had thought that it would be very important to spur investment through economic development. And by offering residency, it allows persons to feel more invested in the country and development of projects that they are completing. So they created a program. And before a few years ago, I would say maybe 3 or 4 years ago, the program used to be a minimum investment of $250,000, but it has since been increased, and there are various options of investment in order for you to receive a residency certificate and be deemed resident in the Bahamas.

Salman Siddiqui: Right. And the Bahamas offers just a residency by investment program, not a citizenship program. That's correct. Right?

Simone Smith-Bean: That's correct. Persons who do come and live and invest in the Bahamas and stay over a certain amount of years could apply for a citizenship once they are deemed by the Immigration Department to be eligible.

Salman Siddiqui: Let's talk about first why Bahamas is an attractive destination for high net worth individuals through residency by investment. So why do you think it is an attractive destination?

Simone Smith-Bean: Well, firstly, the Bahamas is a beautiful destination. We are an archipelago of islands, 700 islands. We have so many different destinations. We are an English speaking country. Our law is based on common law. We have very stable governments and we provide support and attractiveness for investors when they're coming to do very large projects or medium scale projects.

You don't have to pick one place. You can decide to have a residence in different, multiple places in the Bahamas and still be very comfortable there. What else is another great attractive point is that you don't have to stay the six months requirement. You don't have to be there all year. You can have a residency, meet the requirement and obtain the residency certificate and be able to move around the world. This is really important for investors these days because since Covid 19, a lot of persons like to move around the world and be in different places.

So if you would like to get a residency in the Bahamas and you purchase a home or you invest in a business there that is part of this threshold, then you can feel comfortable that you are covered by your residency.

Salman Siddiqui: You mentioned that there are like 700 islands in the Bahamas. So how does one even choose where to live?

Simone Smith-Bean: It's very difficult. One has to decide what type of residents they're looking for. So we have many residents. We have gated communities with very, very high value real estate. We also have private islands that are available, and we have private residents on some of our smaller islands where you have more of a tranquil, quiet lifestyle. It's really up to you as to what type of lifestyle that you wish to curate while you're living in the Bahamas.

You can pick New Providence, that's our capital, and it's very robust and a hustle and bustle and great city life and awesome restaurants and hotels and just a great entertainment center. But if you choose to move to one of our islands like Exuma, you'll experience a more tranquil lifestyle, more island life, more of our culture and what we call family island residents.

Salman Siddiqui: I want to also understand from you the various investment options that are there under the residency by investment program. So where a client puts their money in, is it in real estate? Do they offer government bonds? How does this work?

Simone Smith-Bean: So you can invest in real estate, manufacturing and you can also invest in large projects. This all depends on what you are looking for to really get into, sometimes it can be as simple as buying a home or as simple as setting up a factory. Those things are what is allowed within the investment scheme and also financial products.

If you are a major investor in a financial industry, we have just a few years ago created an act called the Digital Asset Registered Exchanges Act (DARE), and many persons are in the fintech space. If you are one of those investors and you are looking to invest your fintech business and get a license in the Bahamas, you can also participate in the program with your technology company. That's been very attractive for a number of investments and investors around the world.

So if you wish to partake in the program, as long as you are choosing one of those particular areas of investments, then you can make an application and you can be considered for residency.

Salman Siddiqui: And in terms of processing times, say, for example, an investor is interested in getting residency as soon as possible, which of those three options do you recommend? Of course, like you mentioned, the profile of each client differs, but if the matter is about speed, do you think real estate is the way to go or other options that you mentioned are the way to go?

Simone Smith-Bean: Certainly, I think that real estate may be the very sure fast way of getting the residency designate. If you buy a property up to $1.5 million or above, you can automatically be placed within the program. You can make an application at the time when you're purchasing your home and you receive a residency card. Your children, your wife, your family also receive a residency card.

That is something that is a very smooth process. They do a background check to ensure that there are no criminal activities in your background, but once you pass through all of the designated information and you provide the required documents, it's processed very quickly. If you are looking to get in quick, buy a home and one in one of our various gated communities if you wish, or one of our standalone neighborhoods; there are so many options available to you, and as long as you're able to invest in that property, then you certainly will be eligible to apply for your residency.

Salman Siddiqui: If you are to compare the options that the Bahamas offers compared to the programs in the Caribbean which actually offer CBI programs, how do you convince clients that the Bahamas is a better option? And even though you have to put in a lot more money than they would in the other places?

Simone Smith-Bean: Well, I would say that the Bahamas is a very unique place. Besides the stability with government and our English speaking environment, we have a very robust legal framework as well. And much like Cayman and Barbados, which they have their own unique programs, the Bahamas is really known for its streamlined application process and providing various opportunities in investments.

You don't have to pick one, like buy a home. You can pick another type of investment made within the Bahamas, and that would also give you options to become a resident. And just know that once you're a resident in the Bahamas for over a certain period of time, you do can apply for citizenship and that is an option for you, and it can easily happen once you are able to show that you have been a great resident in the Bahamas and you have contributed to the country in a very significant way.

Salman Siddiqui: Right. And in terms of the options for residency there, I'm assuming that a lot of your clients go for the residency by investment through real estate route, or is it the other option that you mentioned earlier for financial products, the fintech companies which are picking up, what is the trend you're seeing these days?

Simone Smith-Bean: Well, right now financial technology is at the top of everybody's mind. I have seen a very high increase in clients looking to move their financial technology companies to the Bahamas and obtain a Digital Asset Registered Exchanges Act license. That has been a very busy area within our practice, and we support our clients throughout the complete process of obtaining their licensing, moving their offices, and obtaining the requisite staff that is required in order for them to come and open their business in the Bahamas.

When they do arrive, they are given opportunities and allowed to participate in the scheme, and they can easily obtain also their residency certificate just as easy as you buying a property.

It's really important for them to decide where is more comfortable for them and their business to operate because of our legislation and the fact that it clearly supported this [policy] direction [to attract] business. We are one of key jurisdictions that people look at when they're considering where they should move their [business] entities and where they should be residents.

One other good point to note is that the Bahamas is so close to the United States, and we have great transit connections to the UK. There's no place in the world that you can't get to without one additional flight, or if you're just coming from London, a direct flight anywhere in the United States on the East Coast and now from California. We do have a flight now from California directly to the Bahamas. And so our connectivity is next to none. Unlike the other islands, we do have airlift multiple times a day out of the island into New Providence. And you can easily get to any one of our other family islands through our smaller airlines and other feeder networks.

Salman Siddiqui: I want to understand this from you in terms of the profile of the applicants who usually apply for the Bahamas, is it right to assume that most of the applicants who apply for this program come from the US and from the UK? Is that the trend that has always been the case, or that trend is changing, and you're seeing people from other parts of the world, for example, maybe, I don't know, China are applying more for the Bahamas. If you could share some profile of your clients that you have seen over the years, that'd be great.

Simone Smith-Bean: Sure. So besides the Europe and the United States, we have had clients come from Singapore. We have had clients look at the program from the Middle East. There has been traditionally a very strong tie between the Bahamas and the Middle East. We have had many of the Royal family have homes within the Bahamas and reside in the Bahamas. This has been a relationship that has grown from the 70s.

We're not unfamiliar with different places from around the world. As long as you have integrity and you have a great background, the Bahamas is open to you to invest in and become one of our residents because we love people from around the world, we are very warm people. We like to welcome persons from different places and we support investment from different places as the way that we become a great environment to grow Bahamian talent, and that's what we look forward to the most. Our country is very focused on growing local talent to support persons who are coming in, and we look to gain more knowledge from international jurisdictions to make our country even better.

Salman Siddiqui: But the majority of the applicants do come from the US, right?

Simone Smith-Bean: Majority of them actually do come from the United States, but we have a very high number of Canadians and also we have a very high number of persons from the Middle East. It depends really on the person's need. And most persons pick the Bahamas because we are a low tax jurisdiction. We don't have any capital gains taxes, we don't have any income taxes, and we don't have any inheritance taxes. People choose the Bahamas as their domicile location of choice for their assets. When you have assets that are under management, you also want to be close to those assets. People from around the world, I would say, choose the Bahamas as their destination of choice, and I hope that more people decide to move there in the very near future.

Salman Siddiqui: Let's also now talk about how the process works, actually. So if you could just walk us through the specific requirements and eligibility criteria for the residency by investment program, do they need to, for example, know a minimum level of English? If you could just walk us through the requirements and eligibility criteria? Sure.

Simone Smith-Bean: Once you choose the investment that you wish to make in the Bahamas, whether that is through financial instruments or it's through real estate, the application process typically goes like this: you fill out the application, you submit the required documents, you undergo a background check, and then you gain approval from the Bahamas Investment Authority. Or you can also obtain approval from the Bahamas Real Estate Association when you buy a property.

But it's very important for you to be able to first find a great legal advisor that can assist you throughout the process. Once you obtain your criminal record and you provide that, they do seek some financial wherewithal on your behalf, that application is submitted to the Investment Authority or to the Bahamas Real Estate Association, and a decision is made.

It depends on what type of investment; the timeline changes. But if you are investing in property, it takes a very short time period. But if you are investing in a major development, then anything $1.5 million and below, it can be easily considered that way and you don't have to get any approval from the government. But if you are investing in a large scale project. Let's say you're buying a private island. Then you would need Bahamas Investment Authority approval, and you would get approval from the government as well. And you would ensure that you are a great citizen person with background and financial wherewithal, and you are able to purchase the property and also develop it as you indicate.

Salman Siddiqui: I'm assuming that options like buying commercial properties or buying property for commercial purposes to establish a resort hotel, is that something that foreign investors can do?

Simone Smith-Bean: Absolutely. We have a number of developments that are happening right now on Abaco, Exuma, Long Island and Eleuthera islands. Many of our largest partners are international companies that look to invest in resorts in the Bahamas.

We have had a long history of investors coming from many different places to invest in tourism. That is one of our number one industries. Everyone knows of the Atlantis Resort in Dubai. The first Atlantis resort was in the Bahamas and it was created by Sol Kerzner, a South African.

There are open window for persons to look at land opportunities that we have in the Bahamas and to develop a tourism product that is unique to our country, and that is a good option. And one thing that I can say about investors, they tend to get right in with the country, and once they feel at home, they become very connected to our society and also to supporting local initiatives across the island.

Salman Siddiqui: In terms of the processing times, how much time does it take for one to get the residency card or the residency permit once they have submitted all their documents? Is it under a year? Is it under six months? So if you could just explain that please.

Simone Smith-Bean: Sure. So at times it can take up to a year. At times it can be less than that. I try to err on the side of caution when it comes to timeframes for this particular application, because I've seen it turn around within four months and I've seen it turn around within eight months.

Sometimes it can go a bit longer when additional documentation is required, and they may not be able to access it as quickly as possible. But certainly you are able to know that the process is happening. It's very transparent. You can get updates from your legal person who is responsible for making your application, and they can contact the immigration department and contact the Bahamas Investment Authority, and they can give you timeline and let you know where the process is with your application.

But once you do apply, you can expect to hear back from them within 30 days as to any additional request. Then you can go through the process and once everything is reviewed and you are approved, that is also for your family as well. You receive your card very quickly, and you can travel with it into the Bahamas and come through the travel line that is designated for Bahamas residents. And so you really don't have to go through too much formality once you obtain this residency certificate.

Salman Siddiqui: We didn't talk about the language requirements. Is that a big deal for getting residency? So if you could also mention that. And of course, I've seen this in a lot of countries programs where there's also a requirement that you have to open a bank account in a local bank. Are there any such requirements under the residency by investment program in the Bahamas?

Simone Smith-Bean: There is no language requirement. Although we are an English speaking country, we do welcome persons who do not speak English. We have a number of persons also from South America that choose the Bahamas as their location of choice to reside. We do have multilingual persons who can assist with persons looking to move.

Whether you speak French, whether you speak Italian, whether you speak Spanish, whether you speak Arabic, it doesn't matter. We do have persons on island who can assist with that language barrier.

As far as a bank account is concerned, there is no requirement for you to have a bank account in a local institution. And when I say local institution, I mean one of our five local banks that offer BSc accounts. But you can make an application to the central bank and you can be, once you're deemed resident, get permission to open up a Bahamian dollar account if you need to pay in dollars.

Most persons can apply and have accounts at one of our various private institutions, and they are just as good as having an account at a local bank, so you can easily do business and also facilitate your transactions through any one of our private entities on island, and that they can assist you with your day to day business.

Salman Siddiqui: Okay, once an applicant gets a residency, what do they have to do? What obligations they have to meet in order to maintain that status in the Bahamas? Are there any requirements that come after that? For example, they buy a property: Do they have to maintain that property or can they sell it once they get residency or maybe invest in something? Or do they? Have to hold on to that property, if you could explain that as well.

Simone Smith-Bean: Residents are typically required to maintain their financial investments, and they most have to adhere to Bahamian law and avoid engaging in any criminal activity to keep their resident status. That's pretty much it. We have some success stories with residents who have kept their properties and don't have to live there full time. Once you have your home or once you have invested in your business, you certainly get to keep your residency status. Once that investment is continued and you maintain that property, or you have that asset in place that can last for your lifetime, you just need to adhere to what Bahamian laws indicate, and you can certainly keep your status.

Salman Siddiqui: And does the law allow you to, for example, put the property up for rent? Is that allowed?

Simone Smith-Bean: Absolutely. You can rent your property, you can lease it out. You can do whatever you wish with your property as long as it stays within your ownership.

Salman Siddiqui: And what happens after that once you've maintained your residency for three, four years? Is there a process where you get permanent residency like we see in other countries?

Simone Smith-Bean: Well, this residency is somewhat like a permanent residency. Once you obtain this, you are deemed resident in the Bahamas, period. It doesn't go away unless you at some point divest yourself of that particular asset. And really the step is for us is that once you become a resident of Bahamas, we would like you to wish to stay within our country.

We also look to support you through that application to become a Bahamian citizen. That happens more after a ten year period of being permanently residing in the Bahamas and obviously participating within the country and supporting local initiatives. So if you wish to seek that route, I would suggest to anyone, if you're buying a property, think about residing and you can come just for a few months out of the year, that is great. And the longer you stay, the longer likely it is for you to also become a citizen of the country.

Salman Siddiqui: And there is no requirement that you have to spend a minimum amount of time in a year, like 90 days or something like that.

Simone Smith-Bean: There is no specific minimum physical presence requirement for the Bahamas.

Salman Siddiqui: So say somebody stays there, for example, for long periods of time. As a resident, do you automatically become qualified after a certain number of years to apply for citizenship?

Simone Smith-Bean: I don't want to.say you automatically become eligible, but you can certainly apply. The Immigration Act looks at a number of different factors. In order for you to apply to become a Bahamian citizen. One of those factors is longevity in the country. And once you're able to meet the necessary criteria in the Immigration Act, consideration can be given and the minister has this full discretion to decide whether or not you are being able to grant you a citizenship.

If you are a citizen of a Commonwealth country, you have a closer tie to be assisted with that process. But for other persons who have been in the Bahamas for a number of years and have invested and also really find that the Bahamas has been their home, they have been given consideration and also been granted citizenship. I've seen it happen in various instances for investors.

Salman Siddiqui: We're coming close to the end of our episode. But before I let you go, I would like to also hear from you some success stories of your clients, of individuals who have obtained residency through investment in the Bahamas and have thrived in the country. So if you could share some stories, that would be great.

Simone Smith-Bean: Sure. One of the most notable success stories of resident who has been very successful within the Bahamas is the late Sir Sean Connery. Sir Sean Connery moved to the Bahamas just after he shot for 007, and he had lived in Latvia most of his time since then, and he actually was resident in the Bahamas when he passed away. There are so many other individual of high net worth that are notable like Tyler Perry and Sheryl Crow. There are so many other people who have invested in the Bahamas and have found success through this program that they continue to maintain their residence and come back again and again and again.

If the opportunity is very ripe and is used multiple times a year, and it happens very often that a person decides to move. We've had a large influx of Canadians come over the past couple of years and before. Canadians have always found the Bahamas as a very great jurisdiction for them to have a second home. And so once you obtain that second home and it meets the financial requirement, you're also eligible for the program and you can be placed as a resident in our country.

Salman Siddiqui: But in terms of the profile of your own clients, do you see are they mainly businesspeople who are moving with their families there or they're just looking for tax benefits, perhaps, and they just look for that jurisdiction. What have you seen in your personal clients? What kind of profiles are they?

Simone Smith-Bean: So because my practice is very focused on financial technology. I've been in this space since about 2016. Most of my clients are ushering their companies and financial technology companies to the Bahamas, and so that's what they have been focusing on moving their business there. Once their business is established, they then fall in love with the islands and they then tend to move their families there. We have great education institutions in the Bahamas, and people find it really comfortable once they arrive. Their business is flourishing and they're able to gain their residency.

They tend to move their families very quickly and they become more entrenched within our society. So I've seen mostly that type of investment scheme come through because my clients are mostly in that industry. So I support them through the process and I try to assist where we can in order to make them feel comfortable, get right on the ground and ensure that their business is up and operating and their resident is also obtained.

Salman Siddiqui: Thank you so much for being part of the show, Simone. I really appreciate you taking out the time to explain how the residency by investment program works in The Bahamas, and I've learned so much from you, and I'm sure a lot of our listeners will be looking forward to invest in the Bahamas. So thank you so much again.

In the end, I would like to shout out to our listeners that please stay tuned to our show. We'll be bringing you more guests from around the world to talk about more investment immigration opportunities.

You've been listening to the Investment Immigration Podcast by Uglobal.com. Join us again soon for more in depth conversations exploring investment immigration opportunities from around the world.

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