Canada’s 25% tariffs on U.S. steel/aluminum imports – potentially climbing to 35% or higher under new Trump tariffs, are significantly increasing construction costs, making Bahamian luxury developments financially attractive. Unlike Canada, The Bahamas imports U.S. building materials tariff-free and offers additional duty exemptions through its Hotel Encouragement Act for approved tourism projects. These advantages, combined with The Bahamas’ tax-neutral environment (no capital gains, corporate, or inheritance taxes), create compelling cost savings for developers compared to North American markets facing rising material expenses and trade tensions.
For developers focused on luxury resorts and second-home markets, The Bahamas offers a value proposition vs traditional builds in Canada or the U.S., combining tariff-free access to U.S. materials, duty exemptions under the Hotel Encouragement Act, and a tax-neutral environment. These advantages make high-end projects increasingly profitable as North American construction costs rise due to tariffs and inflation. The growing interest from crypto investors seeking real-world assets further strengthens this opportunity and the absence of capital gains taxes create an ideal environment for deploying crypto capital into luxury real estate, whether through direct investment, tokenization, or blockchain-based transactions.
Luxury Development: Tax Savings, Tariff-Free Materials & Crypto in The Bahamas
Rosalyn Brown – Digital & Relocation Specialist, Berkshire Hathaway HomeServices rbrown(at)bhhsb(dotted)com
Cell & WhatsApp: (242) 376 1249 / US # (954) 406 4523