The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Realtors yesterday argued The Bahamas has “a fantastic opportunity” to exploit changes in UK tax law by attracting hundreds of ultra wealthy individuals and their families to domicile in this nation.

Gavin Christie, broker and appraiser with Corcoran C. A. Christie Bahamas, told Tribune Business it is “imperative The Bahamas gets it right” in seeking to entice millionaires and billionaires impacted by the UK’s plans to scrap the tax concessions offered to around 68,000 “non-domiciled” persons.

These are persons who, for UK tax, are treated as resident but have their permanent home in another country. However, they now face having to pay millions of pounds in tax as a result of the UK government and opposition Labour party’s plans to scrap a tax break that enabled them avoid paying tax on their overseas income for 225 years.

The change is due to take effect from April 6, 2025, and Mr Christie said The Bahamas is “high up on the list” of alternative destinations for those seeking a rapid exit from the UK. He added that attracting just “10 percent, 15 percent, 20 percent of that wealth will make a huge difference for The Bahamas” and its economy due to the spending impact such high net worth investors will have.

“I was having this conversation last night,” Mr Christie told this newspaper. “Since the shift in the non-domicile status, there’s been a definite increase in interest, and what we’re seeing is this interest is the ultra, ultra wealthy. This is 1 percent of the world who are looking for different avenues, different structures and different places.

“The Bahamas is high up on that list. Me personally, I’ve had meetings with two or three very big families who have non-domicile status in the UK. When I say big, these are large, large generational wealth families. What we’re seeing is The Bahamas is one destination. What we find is they’re looking at The Bahamas, Switzerland and even Malta.”

Mr Christie, though, warned that “it’s imperative The Bahamas gets it right” if it is to successfully compete against the likes of those nations for fresh investment by ultra high net worth individuals. “We have a fantastic opportunity to attract more some of the wealthiest people in the world,” he added. “It will be great for the jurisdiction and uplift the jurisdiction.”

To properly capitalise on the UK tax law changes, Mr Christie said enhancing The Bahamas’ ease of doing business is critical. “The biggest thing, and one of the big challenges we have, is the speed of doing business,” he told Tribune Business.

“If we are able to ensure you can do business, and complete transactions in a decent time period, that’s 50 percent of the battle. Ease of doing business is top of the list. These are global travellers who can live anywhere in the world and do business anywhere in the world, so we need to ensure The Bahamas is on the cutting edge with permitting, technology and the ease of doing business.

“It’s a really huge opportunity, and we don’t get these opportunities often. In my opinion, you’re going to see a mass exodus of ultra wealthy out of the UK. They’re looking for a new home. If we’re able to get 10 percent, 15 percent, 20 percent of that wealth it will make a huge difference for The Bahamas. It helps people, it will help benefit the economy from A-Z. It’s a domino effect.”

Ryan Knowles, founder and chief executive of Maison Bahamas Real Estate, told Tribune Business that he and his firm are “seeing the beginning” of UK non-domiciles seeking out and inquiring about relocating to jurisdictions with friendlier tax environments.

“It’s definitely beginning,” he said. “We’re getting more inquiries, and putting feelers out on our end to folks who might be looking to transition because of being non-domicile. We’re seeing the beginning of that, and as more people get their heads around all the implications that’s going to continue for the rest of 2024. Usually there’s a big rush towards the end of deadlines.

“We’re getting the questions. We’ve gad a few attorneys reach out to us on behalf of clients. That’s usually the first step. They are trying to figure out what the environment is, the potential for getting set up for residency, and ensuring they get an understanding of that before they start to look for property. We’re seeing the beginning of it, and during the summer expect it to heat up as people go on holiday.”

Mr Knowles argued that The Bahamas “stands out” as an alternative jurisdiction for those presently with UK non-domicile tax status “for a number of reasons”, including its proximity to the US in the east coast time zone; multiple commercial aviation links; stable and well-established political and judicial system modelled after the UK’s; and the rule of law coupled with being a parliamentary democracy.

“These are the types of individual we want coming here, and hopefully they will set-up shop, purchase real estate, set up a business, employ people, contribute to the local economy,” he added. “The more high net worth individuals we can attract the better for everyone. It’s not just good for real estate but helps everyone around the industry, attorneys, landscapers, pool maintenance.”