The Tribune

A prominent realtor is urging The Bahamas to reform permanent residency by launching a ‘Start-Up Visa’ programme as a tool that “builds the economy”.

Mario Carey, principal of MCR Better Homes and Gardens Real Estate Bahamas, in a statement called on this nation to revise the permanent residency regime to ensure it delivers long-term benefits for The Bahamas and its citizens by driving economic growth.

Speaking out following the mid-year Budget debate, and growing concerns over the $12bn-plus national debt, Mr Carey said: “We can use this moment as a call to positive action. If we ask: ‘What can we do to grow the economy organically and ensure a stable future in sustainable sectors that withstand vulnerability to outside pressures?’, the answer is right in front of our eyes.

“It’s the Permanent Residency through the Start-Up Visa Programme, which is already proving successful in other countries.” This, he explained, would seek to attract the world’s leading investors to The Bahamas, along with entrepreneurs and innovators, who would then obtain status in this nation through investing in and establishing local businesses that employ Bahamians.

This, Mr Carey said, would help The Bahamas move further away from a product where expatriate investors obtained permanent residency simply by purchasing real estate above a set value and had minimal involvement with the community or economy.

“Generally, we are selling ourselves too cheaply,” he added, “by offering residency for a fee rather than an investment with long-term deep impact. We trade money for the right to live in one of the most desirable places on the planet.

“We should focus on the individual with an innovative idea who can bring investment in industry, education, health care, sports or the arts to make this a better country, and help to build a more robust economy.

“People want to live here, work here, become part of the community. Bahamians educated abroad want to come back, but they feel they can’t – housing is too expensive, good job opportunities too few,” Mr Carey added.

He pointed to Canada, which has a start-up visa programme that requires applicants to have an innovative business concept and show proof they have the ability to design, develop and launch a new enterprise that will provide jobs, diversify and improve the economy.

“The start-up programme offers a better path to permanent residency than the current Bahamian policy because it builds the economy rather than adding a property investment to the portfolio of the applicant; a property that is often flipped or used for short-term luxury rentals,” said Mr Carey.

The Government started to move the permanent residency regime towards Mr Carey’s ideal in the 2024-2025 Budget. Besides raising the economic permanent residence threshold to $1m, from $750,000, for persons qualifying by purchasing real estate, it also moved to diversify how wealthy foreign investors can qualify.

In a move long-argued for by the Bahamian financial services, legal and real estate industries, persons are now able to qualify by acquiring “zero coupon bonds” from the Central Bank. The proceeds will be invested in education, health, Family Island infrastructure development and culture, and not go into the Government’s consolidated fund to finance operational expenses.

And, in a bid to ensure investors value economic permanent residency, become established members of this society and do not abuse this status, the Government said that as a condition of obtaining their permits they must hold either of these assets - real estate or bond - for a minimum ten years. This is designed to prevent rapid ‘flipping’ of the properties they acquire to obtain permanent residency. 

Mr Carey yesterday said the current permanent residency programme has outlived its purpose by focusing on a single payment instead of long-term investment and contribution to national development.

By tying residency to active participation in economic activity, he argued that it will become a tool to fortify the economy, add to government revenues, potentially reduce the tax burden on existing businesses, and attract Bahamians living abroad to return to their homeland.

“We do not need to reinvent the wheel. We can learn from countries around the world adopting the start-up visa initiative because they recognise that it’s the only permanent residency solution that generates long-term financial stability and economic prosperity for its citizens,” said Mr Carey.

“For us, it has the additional advantage of reversing the brain drain because this allows our brilliant minds to return home and work in innovative industries and sophisticated fields that do not exist in The Bahamas today. The time to act is now.”