The Bahamas became widely popular as a tax haven in the 1990s after passing legislation that enabled the incorporation of offshore corporations and IBCs. It remains one of the preferred tax havens for residents of the United States and European countries. The Bahamas provides offshore banking, registration of offshore companies, registration of ships, and offshore trust management. Offshore companies are not required to submit any accounting records to tax authorities.
The Bahamas was the first Caribbean nation to adopt strict banking secrecy laws. Information on offshore bank account holders can only be disclosed by specific order of the Bahamian Supreme Court. The Bahamas is a pure tax haven, with no tax liability at all for offshore companies or individual offshore bank account holders on income earned outside of the jurisdiction.