Family office in the BahamasOverview
The Bahamas combines tax neutrality with a long private banking and trust tradition, proximity to the United States and Latin America, and an English common-law system with appeal to the Privy Council. It suits Latin American and international families wanting a neutral fiduciary centre in the Americas time zone, families who plan to spend time on the islands, and those who prefer civil-law-style vehicles such as foundations. Compared with Cayman or Bermuda it has a smaller funds industry and fewer institutional managers, so many families keep their investment team elsewhere and use The Bahamas for the trustee, foundation and governance layer. There is no tax treaty network, which limits its role as an operating holding company for treaty-dependent investments.
Regulation follows the activity. Trust business generally needs a Central Bank licence under the Banks and Trust Companies Regulation Act, 2020, but private trust companies and qualified executive entities are exempt. The Central Bank's revised guidelines of 21 November 2025, issued with the new Banks and Trust Companies (Private Trust Companies and Qualified Executive Entities) Regulations, 2025, describe a PTC as a company acting only as trustee for trusts created by or at the direction of a Designated Person and related family members. A QEE is an executive entity under the Executive Entities Act, 2011 performing the same role. Each must appoint a Registered Representative, which is either a Bahamas-resident licensed trust company or a licensed corporate service provider registered with the Central Bank, and must have a special director or officer of good reputation with at least five years' relevant experience unless a licensee provides those services.
Investment activity is a separate question. There is no family office exemption written into the Securities Industry Act, 2024, which came into force in 2024 and replaced the 2011 Act; whether an in-house office carrying out dealing, managing or advising needs to register with the SCB depends on the activity and on whom it serves, and should be confirmed with Bahamian counsel. An office advising or managing for unrelated families, or operating a pooled vehicle, will usually require SCB registration or licensing, and family funds take the form of professional or SMART funds under the Investment Funds Act, 2019. Corporate and registered agent services are licensed under the Financial and Corporate Service Providers Act, 2020.
The private wealth statute book has recently been updated. The Trustee (Amendment) Act, 2025 widened the concept of power holder to protectors and family advisers and allows trustees and power holders to seek directions from the court in private. The Arbitration (Amendment) Act, 2025 created a framework for arbitrating trust disputes, and the Usufruct Interest Act, 2026 introduced a civil-law usufruct separating use of property from ownership. These sit alongside the Foundations Act, 2004, the Purpose Trusts Act, 2004, the abolition of the rule against perpetuities in 2011 and the Fraudulent Dispositions Act. Beneficial ownership information is held on a secure government platform rather than a public register, and The Bahamas exchanges information under CRS and FATCA.
Key benefits
- No personal income, capital gains, inheritance or gift tax and no general corporate income tax
- Modernised 2025 regime for PTCs and QEEs, giving families a governance role over trustee decisions under Central Bank oversight
- Choice of common-law and civil-law vehicles: trusts, purpose trusts, foundations, executive entities and the new usufruct interest
- Trust disputes can be resolved confidentially through statutory trust arbitration and private court applications
- Beneficial ownership information kept on a secure platform, not a public register
- Close to the US and Latin America, in the Eastern time zone, with established private banks and trust companies
- Economic permanent residence available to family members from US$1,000,000 of qualifying investment
Requirements
- For a PTC or QEE: act only for trusts created by or at the direction of a Designated Person and related settlors; never accept business from the public
- Appoint a Registered Representative (licensed trust company or Central Bank-registered corporate service provider) to provide secretary, director and agent services in The Bahamas
- Maintain a special director, officer or council member of good reputation with at least five years' relevant experience, unless a licensee provides the services
- Certify the PTC to the Central Bank within three months of incorporation, file annual certifications and compliance certificates by 31 January, and notify changes within the prescribed deadlines
- Keep constitutional documents, the designating instrument, trust instruments, settlor acknowledgements and the share register in The Bahamas
- Verify settlors, founders, beneficial owners, protectors and Designated Persons, and report suspicious transactions under the Financial Transactions Reporting Act, 2018 and Proceeds of Crime Act, 2018
- Assess whether any entity carries on securities or fund business under the Securities Industry Act, 2024 or Investment Funds Act, 2019 and register or license with the SCB where required
- File economic substance returns under the Commercial Entities (Substance Requirements) Act and meet the substance test for any relevant activity
- Provide beneficial ownership details to the registered agent under the Register of Beneficial Ownership Act and classify entities for CRS and FATCA
Structure designs
PTC as trustee of the family trusts
A Bahamian company acting only for the family's trusts, with family members and professionals on its board and a Registered Representative providing local services. Suits families wanting influence over trustee decisions with professional oversight.
Qualified executive entity
An executive entity under the 2011 Act acting as trustee or holding the PTC shares, with no shareholders and a governing council. Suits families seeking a perpetual ownerless entity at the top of the structure.
Bahamas foundation as the family's holding vehicle
A foundation under the Foundations Act, 2004 with a charter and regulations reflecting the family constitution, holding companies and portfolios. Suits families from civil-law jurisdictions familiar with foundations.
IBC holding company with an in-house office
An international business company holding investments, with the office company coordinating external managers, reporting and governance for one family. Suits families whose portfolio management stays with regulated banks or managers.
SMART or professional fund for pooled capital
A fund licensed under the Investment Funds Act, 2019, using one of the SMART templates or the professional fund category, with an administrator. Suits families pooling capital with other families or co-investors.
Purpose trust or usufruct for specific assets
A purpose trust for holding shares or heirloom assets, or the 2026 usufruct interest to separate lifetime use of a property from ownership passing to the next generation. Suits real estate, yachts and other personal-use assets.
Step-by-step process
- 1
Family and tax review
Map family members, residences, citizenships and assets and the tax rules of each home country, including US, Latin American and European CFC and trust rules.
- 2
Structure design
Select the fiduciary layer (PTC, QEE, foundation or professional trustee), the holding companies and any fund vehicle, and decide which activities stay outside the SCB perimeter.
- 3
Governance documents
Draft the trust deeds, foundation charter, designating instrument, PTC articles, family constitution and investment committee terms.
- 4
KYC and formation
Complete due diligence with the Registered Representative and banks, incorporate the companies or register the foundation and executive entity.
- 5
Central Bank and SCB filings
Certify the PTC or QEE to the Central Bank within three months, appoint the special director, and file any SCB fund or registration application.
- 6
Banking, CRS and substance
Open bank and custody accounts, classify entities for CRS and FATCA, and file economic substance and beneficial ownership information.
- 7
Residence and ongoing governance
Where family members relocate, apply for residence; then hold regular board and committee meetings and file annual certifications by 31 January.
Typical documents
- Certified passports, proof of address and police certificates for key persons
- Source-of-wealth report with supporting evidence and source-of-funds evidence for each contribution
- Bank and professional references and CVs for directors, officers and council members
- Designating instrument identifying the Designated Person and related family members
- Draft trust deeds, foundation charter and regulations, or executive entity charter
- PTC memorandum and articles with objects limited to connected trust business
- Organisation and ownership chart of the proposed structure
- Settlor acknowledgements and list of trusts and entities served by the PTC
- Home-country tax advice for settlors and principal beneficiaries
- Family constitution and investment policy statement
How Legal Wealth helps
Legal Wealth helps families decide whether The Bahamas should host the fiduciary and governance layer of their office and how it connects to the investment platform and to the countries where family members live. We coordinate Bahamian counsel, Registered Representatives, trust companies and banks, prepare a discreet source-of-wealth file, test SCB and Central Bank requirements before formation, and draft governance documents around the family's succession goals. For families relocating, we link the structure to Bahamian residence planning. Every step is compliance-first, so the structure can stand up to bank, tax-authority and regulatory review.
Enquire with Legal WealthFrequently asked questions
Does a family office in The Bahamas need a licence?
There is no family office licence as such. A PTC or QEE serving one family is exempt from trust company licensing but must appoint a Registered Representative and certify to the Central Bank. An office managing or advising for unrelated clients, or operating a fund, will generally need SCB registration or licensing; an in-house office should confirm its position with counsel.
What changed for private trust companies in 2025?
The Banks and Trust Companies (Private Trust Companies and Qualified Executive Entities) Regulations, 2025 replaced the earlier rules, and the Central Bank revised its guidelines on 21 November 2025. They confirm the exemption under the 2020 Act, require a special director or officer with at least five years' experience, and set deadlines such as certification within three months of incorporation and annual filings by 31 January.
What is a qualified executive entity?
An executive entity registered under the Executive Entities Act, 2011 that acts as trustee or holds trust assets on similar terms to a PTC. It has no shareholders, so it is often used at the top of a family structure or to own the PTC.
Are there taxes on a Bahamian family structure?
There is no personal income, capital gains or inheritance tax and no general corporate income tax. Local taxes include 10% VAT, stamp duty on certain instruments, business licence fees and real property tax. The Domestic Minimum Top-Up Tax Act, 2024 applies only to multinational groups with consolidated revenue of at least EUR 750 million.
Is beneficial ownership information public?
No. Registered agents record beneficial ownership on a secure government platform under the Register of Beneficial Ownership Act, and information is available to competent authorities and for international cooperation, not to the public.
Can family members obtain residence in The Bahamas?
Yes. Economic permanent residence is available with an investment of at least US$1,000,000 in real estate or Central Bank zero-coupon bonds held for at least ten years, with a certificate fee of US$20,000, or US$25,000 with the right to run one's own business. An annual residence permit is an alternative.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
Sources
- Central Bank of The Bahamas – Guidelines for PTCs, QEEs and Registered Representatives (revised 21 November 2025)
- Securities Commission of The Bahamas – Acts and Regulations
- Chambers and Partners – High Net Worth 2026: Bahamas trends and developments
- Deloitte – Bahamas Highlights 2026
- Department of Immigration – Permanent residence
