Latest updates

Gateway to The Bahamas: runway rehabilitation project
Callenders & Co
  • Aviation
  • Bahamas
  • 16 October 2019

In recent years, there has been significant growth in air traffic to and from The Bahamas. As a result, the government has taken proactive steps to support this growth – notably, with upgrades to several of the country's busiest airports. For example, the Nassau Airport Development Company recently commenced a major rehabilitation project at the Lynden Pindling International Airport. This project will, among other things, include an asphalt upgrade to increase the runway's lifespan.

Supreme Court identifies its jurisdictional limits to assist in trust arbitration proceedings
  • Arbitration & ADR
  • Bahamas
  • 05 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.

Supreme Court identifies its jurisdictional limits to assist in trust arbitration proceedings
  • Litigation
  • 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.

Supreme Court identifies its jurisdictional limits to assist in trust arbitration proceedings
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 29 August 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.

Privy Council determines extraterritorial reach of clawback claims in insolvency proceedings
Lennox Paton
  • Insolvency & Restructuring
  • Bahamas
  • 23 August 2019

The Privy Council has determined that, notwithstanding the absence of express statutory provisions permitting service out of the jurisdiction of fraudulent preference claims, such claims are to have extraterritorial effect. This decision clarifies the law as it relates to the extraterritorial effect of fraudulent preference claims; however, it also creates difficulties for subscribers to mutual funds that may be held liable for investments made on behalf of third-party beneficiaries that are the ultimate recipients of payments.

Privy Council determines extraterritorial reach of clawback claims in insolvency proceedings
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 22 August 2019

The Privy Council has determined that, notwithstanding the absence of express statutory provisions permitting service out of the jurisdiction of fraudulent preference claims, such claims are to have extraterritorial effect. This decision clarifies the law as it relates to the extraterritorial effect of fraudulent preference claims; however, it also creates difficulties for subscribers to mutual funds that may be held liable for investments made on behalf of third-party beneficiaries that are the ultimate recipients of payments.

New tax reforms in effect
  • Real Estate
  • Bahamas
  • 19 July 2019

In the 2019/2020 Budget Communication the government announced various tax reforms which came into effect on 1 July 2019. Among other things, the cap on owner-occupied property has increased from B$50,000 to B$60,000 per year and stamp duty on real property has been replaced by value added tax (VAT) at the same rates. Further, any party that is required to become a VAT registrant must have a business licence.

New tax reforms in effect
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 18 July 2019

In the 2019/2020 Budget Communication the government announced various tax reforms which came into effect on 1 July 2019. Among other things, the cap on owner-occupied property has increased from B$50,000 to B$60,000 per year and stamp duty on real property has been replaced by value added tax (VAT) at the same rates. Further, any party that is required to become a VAT registrant must have a business licence.

Extinguishment of purchasers' rights – importance of priority in unregistered land systems
  • Real Estate
  • Bahamas
  • 21 June 2019

The Bahamas has an unregistered land system that is based on the conveyancing laws of England and Wales issued before 1925. Therefore, deeds and documents should be recorded in the Registry of Records in The Bahamas as soon as possible. Priority becomes particularly important in high-net-worth commercial and condominium development transactions.

Extinguishment of purchasers' rights – importance of priority in unregistered land systems
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 20 June 2019

The Bahamas has an unregistered land system that is based on the conveyancing laws of England and Wales issued before 1925. Therefore, deeds and documents should be recorded in the Registry of Records in The Bahamas as soon as possible. Priority becomes particularly important in high-net-worth commercial and condominium development transactions.

Government reopens negotiations on overflight fees and airspace management
Callenders & Co
  • Aviation
  • Bahamas
  • 19 June 2019

The Bahamas' flight information region airspace comprises tens of thousands of miles and is subject to significant overflight activity. Moreover, it is one of the most important airspaces and is worth millions in revenue. To further enhance the civil aviation sector, the government is seeking to create a self-funded and sustainable management programme in order to collect overflight fees, while paying the US Federal Aviation Administration a fee for the management of its airspace.

Register of Beneficial Ownership Act: a new day for beneficial owners
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 09 May 2019

Since 2001 international organisations such as the Financial Action Task Force have pressured offshore financial centres to pass legislation in order to increase transparency within their financial services sectors. As such, the Register of Beneficial Ownership Act recently came into effect in The Bahamas. The act seeks to create a private search registry containing details of beneficial owners of domestic and international companies in The Bahamas.

Great strides made towards enhancing aircraft registry and ratifying Cape Town Convention
Callenders & Co
  • Aviation
  • Bahamas
  • 27 March 2019

The Bahamian government continues to make progress towards enhancing its aircraft registry and ratifying the Cape Town Convention. For example, the Aviation Steering Committee (ASC) recently presented draft legislation to implement the Cape Town Convention to the Attorney General's Office. The ASC expects this draft legislation to be approved and presented to the Cabinet before the next government budget communication in Summer 2019.

Bahamian insolvency regime continues to promote judicial efficiency
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 28 February 2019

The Bahamian legislature continues to examine its existing legislation for ways to promote judicial efficiency by amending and implementing new procedures in its insolvency regime. As the global economy continues to grow and foreign companies and investors increasingly face obstacles arising from the use of offshore structures, the need for cross-border insolvency proceedings and the use of protection afforded to investors will likely continue to increase.

Buying real estate – when to engage an attorney?
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 21 February 2019

After finding the ideal property to purchase, what is the next step? Engage an attorney. An attorney can help to connect real estate buyers with key service providers in order to arrange, among other things, home inspections or insurance. Involving an attorney will make the difference between a smooth transaction that meets the expectations of the buyer versus one that is fraught with issues, unrealistic expectations and other obstacles which could have been avoided with the benefit of early advice and proper planning.

Foreign direct investment in real estate market
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 14 February 2019

Foreign direct investment (FDI) remains one of the key catalysts to the Bahamian economy's growth and sustainability. The Bahamas National Investment Policy seeks to boost the economy through investments and provide favourable returns for investors. To this end, it encourages FDI in key areas in the real estate market, including tourist resorts, upscale condominiums, timeshares and second-homes and marinas.

Change is in the air: implementation of national aviation policy and ratification of Cape Town Convention
Callenders & Co
  • Aviation
  • Bahamas
  • 19 December 2018

For the first time, The Bahamas has embarked on an ambitious project to develop a national aviation policy to better coordinate and facilitate civil aviation activities to, from and within the country. Further, the ratification of the Cape Town Convention will better position The Bahamas as a key player in the global industry in terms of financing and leasing aircraft and will allow the country to compete in the aviation industry on a global level.

Offshore drones: a broadening horizon
Callenders & Co
  • Aviation
  • Bahamas
  • 24 October 2018

The Bahamas is ripe with opportunity and well positioned in what has become a new global industry within the civil aviation sector. The numerous remote islands in the country afford many possibilities regarding the operation and testing of drones as they become more sophisticated and start to be used for various operations. Drone operators, whether commercial or recreational, must be mindful of privacy, data collection and use and nuisance.

Preparing for take-off: transforming the civil aviation sector
Callenders & Co
  • Aviation
  • Bahamas
  • 12 September 2018

The Bahamian authorities recently embarked on an ambitious project to reform and enhance the country's civil aviation sector. These efforts will enhance the country's standing in the global arena, where aviation is experiencing considerable and dynamic growth. Such growth will benefit not only the country's civil aviation sector, but also its financial services and private sectors.

Supreme Court evaluates scope of trustees' protection in contentious trust litigation
Lennox Paton
  • Private Client & Offshore Services
  • Bahamas
  • 09 August 2018

The Supreme Court recently assessed the protection afforded to trustees by virtue of Section 83 of the Trustee Act 1998, which provides that a trustee cannot be bound or compelled by way of discovery to disclose information and documents about a trust. In Dawson-Damer, a trustee had used Section 83(8) as a basis to refuse a disclosure request. The applicant's case was built primarily on the allegation of a breach of duty (ie, the trustee had failed to consider the applicant's needs).