The government is proposing to change the access to the Family Islands Development Encouragement Act for foreigners, to allow only 50 percent of the concessions that are given to Bahamians, in order to ensure that foreigners do not take advantage of the concessions and to encourage more local buying by foreigners, Minister of Agriculture, Marine Resources and Family Island Affairs Clay Sweeting said last week, during his contribution to the 2023/2024 budget debate in the House of Assembly.

Sweeting said, though, that it appears Bahamians have not fully taken advantage of the concessions due to them under the act. He added that foreigners have used the act to build and expand vacation rental homes, that they have put on the market and profited from.

"As you are aware, the government of The Bahamas has continued its commitment to the Family Islands Development Encouragement Act, which over the years has proven to be beneficial to residents of various island communities where economic activity needed to be supported by the government," said Sweeting.

"While there has always been equal access to this subvention implemented by the government, it is clear that the Bahamian residents have not always fully been able to take advantage of this opportunity as they should.

"We have found, however, that many foreigners have indeed utilized these subventions and as a result many have built many homes that they are using for the VRBO (Vacation Rental By Owner) and Airbnb markets, that are rivaling hotel room occupancy in many of our Family Islands.

"While we encourage Bahamians to utilize this economic subvention, we are implementing measures to ensure that it is not taken advantage of.

"As such, this administration is reducing the waiver to 50 percent for foreigners only, who have homes or are building homes in the Family Islands."

Sweeting said it is hoped that this change will expand the local economy by encouraging local purchases. He added, though, that concessions will remain at 100 percent for Bahamians and additional exempt items will be added to the list of supplies.

The Department of Inland Revenue has recently cracked down on delinquencies in real property tax, much of which is owed by foreigners who have land in the Family Islands, and many of whom run businesses like vacation rentals from those properties.

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