Bahamas updates

Litigation

At a glance: COVID-19 court protocols
Lennox Paton
  • Bahamas
  • 19 May 2020

COVID-19 has forced society to embrace all things technological and forced individuals to adapt to working remotely. As it stands, court operations before the Magistrates Court and the Supreme Court are restricted to essential services until the first working day after the expiry of the Emergency Powers (COVID-19) (No 2) Order 2020, which may be extended by amendments. This article sets out what is permitted according to the judiciary's latest Mitigation Protocols concerning civil and commercial matters.

Supreme Court identifies its jurisdictional limits to assist in trust arbitration proceedings
  • Bahamas
  • 03 September 2019

The Supreme Court recently clarified its jurisdictional limits to assist in trust-related arbitrations, ruling that it has no such jurisdiction to allow service outside an action's jurisdiction. Given this ruling, parties to trust arbitration agreements must be cognisant that, notwithstanding whether their trust deeds provide for the seat of any arbitration to be The Bahamas, the court can provide only limited assistance where the arbitration is not held and the parties or assets are not in The Bahamas.


Private Client & Offshore Services

Contributed by Lennox Paton
COVID-19: force majeure and contract frustration
  • Bahamas
  • 01 October 2020

The COVID-19 pandemic has disrupted commercial activity on a global scale, challenging contracting parties' ability to fulfil their legal obligations. Force majeure clauses and frustration principles may provide some relief to those which may otherwise incur liability because of non-performance. However, there does not appear to be any clear case law precedent for COVID-19, so it is uncertain whether the pandemic will be deemed a frustrating event by the courts.

Guide to purchasing property in The Bahamas
  • Bahamas
  • 27 August 2020

A second home in The Bahamas has been a highly sought-after commodity for international buyers from time immemorial. The Bahamas is an archipelagic nation of 700 islands and cays, with each island providing its own charm and unique Bahamian culture. As the value of real property in the jurisdiction tends to hold or gradually appreciate over time, the purchase of real property remains a viable and attainable wealth-creating mechanism.

Tax consequences of transferring Bahamian real property held by a company for estate planning purposes
  • Bahamas
  • 23 July 2020

Bahamian real property is commonly held by a company which is incorporated in The Bahamas or another jurisdiction whose shares may be held by an individual or their nominee. A 'beneficial owner' is any person who is beneficially interested in the real property, including a beneficiary under a trust. This article considers the tax consequences of transferring Bahamian real property held by a company for estate planning purposes.

COVID-19: summary of legislation enacted in relation to corporate regulations and businesses
  • Bahamas
  • 04 June 2020

In response to the COVID-19 pandemic, the governor general declared a public state of emergency and implemented the Emergency Powers (COVID-19) Regulations 2020. Pursuant to the regulations, the prime minister implemented the Emergency Powers (COVID-19) (2) Order 2020 and the Emergency Powers (COVID-19) (Special Provisions) Order 2020. This article provides a summary of the provisions contained in the orders.

Has COVID-19 affected real estate transactions?
  • Bahamas
  • 28 May 2020

Restrictions on both domestic and international travel, lockdowns and curfews have been imposed in The Bahamas to restrict movement in an attempt to reduce the spread of COVID-19. While law firms have had to close their physical doors to the general public, real estate and resort development attorneys have embraced new and efficient procedures for closing transactions.


Real Estate

Guide to purchasing property in The Bahamas
Lennox Paton
  • Bahamas
  • 28 August 2020

A second home in The Bahamas has been a highly sought-after commodity for international buyers from time immemorial. The Bahamas is an archipelagic nation of 700 islands and cays, with each island providing its own charm and unique Bahamian culture. As the value of real property in the jurisdiction tends to hold or gradually appreciate over time, the purchase of real property remains a viable and attainable wealth-creating mechanism.

Tax consequences of transferring Bahamian real property held by a company for estate planning
Lennox Paton
  • Bahamas
  • 24 July 2020

Bahamian real property is commonly held by a company which is incorporated in The Bahamas or another jurisdiction whose shares may be held by an individual or their nominee. A 'beneficial owner' is any person who is beneficially interested in the real property, including a beneficiary under a trust. This article considers the tax consequences of transferring Bahamian real property held by a company for estate planning purposes.

Has COVID-19 affected real estate transactions?
Lennox Paton
  • Bahamas
  • 29 May 2020

Restrictions on both domestic and international travel, lockdowns and curfews have been imposed in The Bahamas to restrict movement in an attempt to reduce the spread of COVID-19. While law firms have had to close their physical doors to the general public, real estate and resort development attorneys have embraced new and efficient procedures for closing transactions.

What impact could COVID-19 have on leases?
Lennox Paton
  • Bahamas
  • 22 May 2020

The government recently announced an ambitious rental assistance programme to assist tenants who have been economically affected by COVID-19 and are unable to satisfy their contractual obligation to pay rent. However, many pundits have questioned the legality of rental assistance during a state of emergency.

Special tax relief for Abaco and Grand Bahama
Lennox Paton
  • Bahamas
  • 31 January 2020

To encourage the rebuilding effort in Abaco, Grand Bahama and the surrounding Cays after Hurricane Dorian, tax relief is now available under the Disaster Reconstruction Authority (Special Economic Recovery Zone) (Relief) Order 2019. This article examines the tax relief available with regard to real property.