A proposal before Cabinet to increase the immigration status available to foreign investors and to provide greater "clarity" on the terms on which they can access such status has been deemed "incredibly important" by the head of the Bahamas Financial Services Board (BFSB).
Aliya Allen, chief executive officer at the BFSB, said the program would bring increased transparency and definitiveness for those seeking immigration status in the country. In doing this, as well as offering the possibility of investors gaining permanent residency with the right to work in their own businesses, she said it would "go a long way towards making The Bahamas competitive in its immigration offering".
"This is only going to create additional economic impact," said Allen, calling the proposal one that would solidify in a formal framework that which The Bahamas has been marketing itself as for some time - a place do business rather than simply to administer wealth.
"It's a very important way to see this as really something that is a confirmation of what The Bahamas has been branding itself as for a long time: as a full service center, and that includes the ability to domicile your business here, manage your wealth here and work and raise a family."
Her comments come in response to remarks made by Minister of Financial Services Ryan Pinder in an interview with Guardian Business this week in which he disclosed that Cabinet is currently considering a proposal for a "transparent, rules-based economic permanent residency program" that expands what is currently available to non-Bahamians in return for investment while not making any alterations to the terms of eligibility for citizenship.
He said that in addition to making more clear and definitive the conditions under which investors can obtain residency in The Bahamas, the changes proposed include allowing an individual to gain permanent residency with the right to work in their own businesses.
Pinder also revealed that the government is considering implementing a tax certificate program that would provide people with evidence of residency for tax purposes in The Bahamas.
"We don't have any kind of regime to show you are a tax resident in The Bahamas, so we're looking to try to develop that kind of regime as well. In this global environment, tax planning is important and so having certainty around tax planning is important," he added.
Commenting on how providing investors with the right to work in their own businesses will be of benefit to the sector and the economy at large, Allen said: "It's helpful when you look at what we're seeing as a trend in terms of how businesses are developing and how the ultra high-net worth individuals (HNWI) are seeking to organize their businesses and lifestyles. They are looking for multiple bases of operations, certainly, but also looking to consolidate in a place that can offer them the sophisticated infrastructure, a well-regarded regulated framework, an idyllic lifestyle and an accessible platform to the U.S. and other jurisdictions. So it's incredibly important, because the future for The Bahamas will be in branding itself as much more than a place for products and banking relationships, but as a place where you can have substantive operations, where you can not only sort of manage your own personal wealth but manage your business and raise your family."
Allen said that the proposal comes after significant discussion between the government and the financial services sector over a number of years.
"It's really about looking at immigration in a transformed way as a jurisdiction and seeing it not simply as a necessary evil, but seeing it as really providing an opportunity to The Bahamas to expand our service offerings to deepen the financial services infrastructure and to ensure we have clients who are able to interact with the jurisdiction in a much more substantive manner."
Allen said that while The Bahamas would not consider a citizenship-by-investment program, such as that operated by St. Kitts and Nevis, which has recently come under pressure from the U.S., she expects that a program that includes access to citizenship on terms different from the current requirements "will likely be discussed much more going forward".
"The passport issue is certainly something that the industry has supported, but it's something that has to be discussed," she said.
Butterfield Bank (Bahamas) Chairman Ian Fair, suggested that an "economic game changer" could be created if the government were to amend the Nationality Act to allow investors to access citizenship via investment. Fair suggested that anything short of this might not have so great of an impact. However, Allen said that she sees a program such as that now before Cabinet as offering benefits.
"I think there are investors and HNWIs who are currently attracted to The Bahamas who will find that permanent residency, or residency with right to work in your own business, is just as attractive (as citizenship); it really depends on what you are looking for in the jurisdiction," she said.
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