Bahamas projects $223 million surplus in 2026/27 budget

The Bahamas government has unveiled a 2026/27 budget projecting a $223.1 million surplus while introducing targeted tax relief for first-time homeowners alongside new revenue measures aimed at large businesses, foreign property owners and commercial users of public services.

Presenting the budget in Parliament, Michael Halkitis said the government expects to generate $4.4 billion in revenue against $4.1 billion in expenditure while reducing the country’s debt-to-GDP ratio to 59.9 percent.

Halkitis described the budget as one centered on “responsible growth, economic resilience and opportunity for Bahamians,” while noting ongoing global uncertainty linked to energy prices and international tensions.

Among the key relief measures is an expansion of value-added tax exemptions for first-time homeowners to include duplexes, triplexes and fourplexes where at least one unit is owner-occupied.

“The goal is to make home ownership more accessible while allowing families the opportunity to generate rental income,” Halkitis said.

The government will also raise the real property tax exemption threshold for first-time homeowners from $500,000 to $600,000.

Additional duty reductions were announced for several household and health-related products, including sanitary items, chair lifts for elderly and disabled persons, and wigs for cancer and alopecia patients.

At the same time, the administration plans to increase contributions from larger corporations and foreign property owners.

Businesses earning more than $175 million annually will face a higher business licence rate, while foreign-owned properties will be placed under a new tax category.

Halkitis said major companies “have benefited significantly from the country’s economic performance and are in a position to contribute more to national development.”

The budget also introduces several new compliance and revenue-generating measures, including the implementation of a Bahamas Identification Number system, landfill tipping fees for large-scale waste producers, seabed lease fees for commercial marine activities and new registration requirements for foreign recreational vessels operating in Bahamian waters.

Certain immigration and residency application fees will also increase, though the government plans to reduce work permit fees for caregivers assisting elderly or bedridden individuals.

In healthcare, the government allocated $11.6 million for clinic construction and upgrades across multiple Family Islands and confirmed plans for a new hospital facility in New Providence, supported by an initial investment of approximately $20 million.

Halkitis said the budget reflects continued economic recovery fueled largely by strong tourism performance.

According to the finance minister, tourism arrivals increased by more than 11 percent in 2025, with nearly 12.5 million visitors recorded. Arrivals during the first quarter of 2026 were also running significantly ahead of last year’s pace.

“We are seeing steady economic expansion, improving employment levels and stronger tourism numbers, all of which position The Bahamas for continued growth,” Halkitis said.