The Government of The Bahamas has implemented special concessions to encourage development and investment in the Family Islands (commonly called the "Out Islands"), which are the islands outside of Nassau (New Providence) and Freeport (Grand Bahama).

The Bahamian government designed these initiatives to stimulate economic growth, promote homebuilding, and support business expansion in the Out Islands. To accomplish this, it applies special import duties for Harbour Island specifically on building materials, equipment, and supplies. These reduced or waived duties serve as targeted incentives, encouraging development while helping offset the high costs typically associated with importing goods to the island.

• Duty-free and VAT-free importation of:
  • Building materials (wood, concrete, steel, tiles, roofing)
  • Plumbing and electrical materials
  • Household furnishings and appliances (for primary residences)
  • Construction equipment (sometimes under special application)
• Applies to both residential and commercial construction projects.
• Covers individuals, developers, and business owners who are approved for the program.

How it Works:

• You must apply to the Bahamas Ministry of Finance or Bahamas Investment Authority for approval before importing goods.
• Once approved, you receive exemption certificates to clear your goods through customs without paying standard duties or VAT.
• Strict documentation and proof of project scope are usually required.

Practical Implications for Harbour Island and Eleuthera

• Developers building homes, hotels, resorts, or businesses can dramatically reduce construction costs.
• Even private homeowners building or renovating may benefit — if they apply properly.
• Without approval, standard import duties (20%–45%) and VAT (10%) would normally apply.
• Harbour Island, despite its high-end market, fully qualifies under this Out Island incentive program.