The Bahamas is one of the most prosperous countries in the Americas, following the United States and Canada. The Bahamas economy relies on tourism and financial services to generate most of its economic activity.
Tourism as an industry not only accounts for over 60 percent of the Bahamian GDP, but provides jobs for more than half the country's workforce. The Bahamas attracted 5.8 million visitors in 2012, more than 70 percent of which were cruise visitors.
In addition to tourism, the financial services sector accounts for some 15% of GDP of the Bahamas. The government has adopted incentives to encourage foreign financial business, and further banking and finance reforms are in progress.
The Bahamas is often considered to be a tax haven and is home to many wealthy people who would otherwise be paying large amounts of tax in their home country. Part of the explanation is that the economy has a very competitive tax regime. The government derives its revenue from many types of taxes, but there is no income tax, corporate tax, capital gains tax, value-added tax (VAT), or wealth tax.
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