The Bahamian Private Foundation -
A civil law concept in a common law world (pg.3)

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Rights of beneficiaries to receive information

Beneficiaries who have a vested interest in the assets of the foundation have the right to request information or documents pertaining to their interest for example, in respect of the fulfillment of its objects, to inspect copies of the charter, articles and audits.

Exemptions & stamp duty

A Bahamian foundation is exempt from the payment of business licence fees, income tax, capital gains tax or any other tax on income or distributions accruing to or derived from such foundation or in connection with any transaction to which that foundation is a party. Also, no estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by a founder or beneficiary with respect to any interest given to or received from a foundation.

The exchange control rules and regulations do not apply to a foundation or to any transaction by a foundation whose founder(s) and beneficiaries are non-resident for Bahamian exchange control purposes.

Additionally, all instruments to which a foundation is a party relating to transactions in respect of the assets of a foundation and relating to other transactions concerning the business of a foundation is exempt from the payment of stamp duty, provided however that in the case of assets of the foundation no Bahamian real property or personality is included in such assets.

Re-domiciliation

The Act permits a foundation registered thereunder to re-domicile and register under the laws of another country having regulation of foundations generally or reasonably compatible with the laws of The Bahamas relating to foundations, in the manner provided by those laws.

Additionally, a foundation established under the laws of another country, having regulation of foundations generally or reasonably compatible with the laws of The Bahamas relating to foundations, may, if it will satisfy the requirements prescribed for a foundation under the Act, re-domicile to The Bahamas, provided that the laws of such other country permit it to re-domicile.

Uses

Some possible uses of a Bahamian private foundation include:

(i) estate or tax planning;
(ii) holding shares in an underlying company;
(iii) charitable or philanthropic purposes; and
(iv) structuring of commercial deals.

The following is not meant to be construed as legal advice in any way. Should additional information be required or specific guidance in respect of Bahamian foundations is required, we would be pleased to assist. In this regard, please contact Attorney Samantha Knowles-Pratt at the contact details given below.

Samantha Knowles-Pratt
Attorney-at-Law
Halsbury Chambers
Counsel and Attorneys-at-Law
Halsbury Commercial Centre
P. O. Box CR-56766, Suite 548
Nassau, The Bahamas
Tel: (242) 393-4551-5
Fax: (242) 393-4558
spratt@halsburylawchambers.com

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