Retirement on Abaco - Seeking Advice

[jp]

Hello. My wife and I retired young-ish. After many exploratory trips throughout the Bahamas and after living in the Caribbean for several years a few years ago, want now to attempt a full-time retirement residence on Abaco.

Am about to submit an Application to Reside (no work permit required and we have no children). We then intend to seek a 6 or 12 month residential lease, which we think will provide enough time to determine whether we fit Abaco and Abaco fits us before we invest in a house and apply for permanent residence.

Immigration in Nassau has been helpful (though difficult to get hold of on the phone) but always a good idea to have input from folks who have been there and done it. So any input please on the following would be much appreciated:

Is it a good idea for us to apply for this initial type of residence (First Schedule, Form 1) instead of relying on the fact that US citizens can apparently stay for up to 8 months, apparently without any such permit or application? Usually prefer the "security" of a piece of paper and we want to be able to come and go freely. Don't want to step on any toes of course as our intent is to stay permanently. So want to do it right but without unnecessary bureaucracy - if such is possible.

We asked Immigration for "an annual residence application" but notice that the word "annual" doesn't appear anywhere on it. Are these things usually granted for a year? If so, can they be rolled over into another year if need be?

Many thanks in advance for your input.

[Dale Eichel]

Very good questions. I will be watching as I have the same ones. Dale

[nancy mcdaniel]

affordable rentals are really hard to come by. Remember that the weekly rental market is a very lucrative business in the Abacos. Also, the cost of living is really high. Food costs, transportation, utilities and etc. Also, you just do not have the services available (you will wait in a doctor's office for hours). Electricity will go out often and for a considerable amount of time, phones too. Immigration issues will be extremely complicated to understate that fact. You will not, ever, be able to make any money in the Bahamas - no side jobs, nothing or you willl end up in big trouble. Abaco is not for sissies. .

[Kimberly]

Kauai comes to mind ... that being said, the last time a U.S. girlfriend of mine tried to check out Harbour Island as a lifestyle change, she was allowed six months tops on her visa and then had to head to Florida for at least 48 hours before returning.

By the time that my vegan health fiend gal pal left harbour island a year and a half later, she was eating spam straight out of the can, no kidding. Boats with fresh produce were inconsistent that year courtesy of several storms, et al.

Some of us do just fine with a steady supply of conch and grouper and seagrapes and cocoplums and coconut water and guineps and cherries and sugar apples and dillies when the boats get delayed ... and some just don't.

[nancy mcdaniel]

MODERATOR 242 IS BACK IN THE SADDLE! Come on guys! Let's get this Abacoboard Party Started!!!! the board has been really lame lately!

[Island Notes]

Firstly you don't have to deal with Nassau, the application for residency, whether annual of permanent is handled by the local Immigration office in Marsh Harbour.

The annual residency permit, sometimes called the "Home Owners Permit" was designed for owners of property who did not wish to be bound by the requirement to leave the country after the normal 80-120 days that was granted on entry. That said, because the cost is $1,025 per year for a couple, many American home owners choose to spend $400 on air tickets three times a year rather than go through the application process. Many in this category will be visiting family, doctors, dentists etc.. or shopping in the United States anyway, so it really makes no difference.
Annual Residency applications take about 2-6 months to approve and require copies of Deeds to be submitted, a Police Certificate, photographs and an interview with an Immigration Officer.

The other category is "Permanent Residency" which allows you to remain in The Bahamas for as long as you wish however it also obliges you to reside in The Bahamas for at least eight months per year. I have never heard of Permanent Residency being granted to someone who does not own a home in The Bahamas unless they are in the family category (ie. married to a Bahamian) or they have been here in another category for a very long time. Permanent Residency applications normally take an average of
3 years to approve. Applicants in the Economic Category require local references, an interview and significant proof of financial independence to a minimum of $500,000 (which may include Bahamian real estate).

I guess the question I have to ask is why are you trying to apply for any type of residency status if you do not currently own property and are not even sure if you will remain in The Bahamas at the present time ?









Hello. My wife and I retired young-ish. After many exploratory trips throughout the Bahamas and after living in the Caribbean for several years a few years ago, want now to attempt a full-time retirement residence on Abaco.

Am about to submit an Application to Reside (no work permit required and we have no children). We then intend to seek a 6 or 12 month residential lease, which we think will provide enough time to determine whether we fit Abaco and Abaco fits us before we invest in a house and apply for permanent residence.

Immigration in Nassau has been helpful (though difficult to get hold of on the phone) but always a good idea to have input from folks who have been there and done it. So any input please on the following would be much appreciated:

Is it a good idea for us to apply for this initial type of residence (First Schedule, Form 1) instead of relying on the fact that US citizens can apparently stay for up to 8 months, apparently without any such permit or application? Usually prefer the "security" of a piece of paper and we want to be able to come and go freely. Don't want to step on any toes of course as our intent is to stay permanently. So want to do it right but without unnecessary bureaucracy - if such is possible.

We asked Immigration for "an annual residence application" but notice that the word "annual" doesn't appear anywhere on it. Are these things usually granted for a year? If so, can they be rolled over into another year if need be?

Many thanks in advance for your input.

[syd]

If American, and not yet a land owner the eight months is easy. When you arrive the immigration officer will give you a limited time to stay. If the time expires you can request an extension. you don"t have to leave. you may have to prove that you can support yourself with financial docs. relax and enjoy your stay. I would wait a year to see if the Bahamas is the place for you before I would bother with the resident permits.

Syd

[Colette]

One quick correction to Island Notes message. The home owners cost is $500 per year with a $25 processing fee. The residency permit is $1025, also per year. The original application we sent from Abaco to Freeport, after that we deal through Immigration in MH. We were not interested in becoming citizens, which is what the residency permit leads to, if you want. The Home Owners permit allows a full year on the island, and there's always an excuse to visit the US for 'something or other'. After the first year you don't need to submit all the documents again, just a request letter and new photos along with the form. Mr. Bonaby in MH Immigration (Gov't dock) told me to bring them to him instead of sending to Freeport. Am on my first year with the card, and am comfortable with this arrangement. However, we do own a home here, and I believe that's required no matter what. You're better off making trips back to the US to renew the passport. By the way, there is no visa required. The passport is the document to keep up.

[Hugh Coyle]

;) Hello, I"m a lot owner on Abaco with idea's of building a home next year and have a question. Is the Home Owners Permit $500.00 Per person for one year?? Each year after that the same??? Is the $500,000.00 our net worth or Value of real estate only in the Bahamas?? Thanks HJC

[Island Notes]

Colette, Sorry you are correct there is a difference in cost for the "Home Owners card" and "Annual Residency".

I disagree however that Permanent Residency is sought by those aiming for citizenship. There are two principal reasons for aquiring Permanent Resident status (excepting family/marriage considerations).

a) A foreign business owner with substantial financial investments in The Bahamas (with or without the right to work in a specified occupation) appreciates the security of Permament Residency which cannot easily be revoked without it going to very high levels.

b) Taxation in many countries (not the U.S.) is determined by residency status, not citizenship. If you are a Permanent Resident of another country and have no significant ties to your former home country then you are not subject to tax on your worldwide income and are taxed at a reduced rate for any income derived in your home country. In most cases that does not necessitate any change in citizenship.

If the country you move to has no income, capital gains or inherritance tax then you just got very lucky.

That is why you see an above average number of British and Canadians living in the Caymans, Turks & Caicos, Barbados and Bahamas. It ain't just because the weather is nice !

That said, as an American, if you wish to get the same taxation benefits then you do have to give up your U.S. citizenship.






One quick correction to Island Notes message. The home owners cost is $500 per year with a $25 processing fee. The residency permit is $1025, also per year. The original application we sent from Abaco to Freeport, after that we deal through Immigration in MH. We were not interested in becoming citizens, which is what the residency permit leads to, if you want. The Home Owners permit allows a full year on the island, and there's always an excuse to visit the US for 'something or other'. After the first year you don't need to submit all the documents again, just a request letter and new photos along with the form. Mr. Bonaby in MH Immigration (Gov't dock) told me to bring them to him instead of sending to Freeport. Am on my first year with the card, and am comfortable with this arrangement. However, we do own a home here, and I believe that's required no matter what. You're better off making trips back to the US to renew the passport. By the way, there is no visa required. The passport is the document to keep up.

[Bruce Benson]

I've known theRussell family on Green Turtle for about twenty years. They have two nice, two bedroom apartments, family atmosphere, boat dock, etc. I have heard him mention the possibility of a yearly rental. You may want to check with him. You can e-mail me at sbruce57@aol.com for his contact info.

[Tom R.]

I could be wrong on this but Im going with it anyway.

The reference to giving up U.S. citizenship I dont believe is correct. If a U.S.
citizen renounces their U.S. citizenship and gets another passport from another country the U.S. does not recognize the giving up part. If you dont pay your taxes useing this as an excuse the U.S. will and can still prosecute you as a U.S. citizen. In this example a person traveling to the U.S. would have to use their new passport and be subject to all the county of orgin considerations of doing that. The IRS doesnt keep a file of Americans that have renounced their citizenship and say: "OK we dont have to worry about this guy anymore" For example If you get sick and seek medical treatment in the U.S. for an extended period this could be a problem especially if the IRS finds you. Lots of folks have tried this and many are in jail. This would hold true to the American Tailiban fighters in Afganistan. They dont get to go to Gitmo, they get due process in a US federal court even if they did give up their us citizenship. The US doesnt care what you say just what you do. Tom R. GTC

[Rub-a-Dub-Dub]

Tom R.
You were pretty accurate about "taxpatriates." Here's more detail.
http://www.bankrate.com/brm/itax/news/20040402a1.asp

[Researcher]

Hi, I am new so understand this question has probably been asked a million times but I can't find it. Is there anywhere I can locate building restrictions? i.e., what you can do for yourself and what you have to contract to be done? What is the duty on materials we fly over ourselves?

If there is a more appropriate to post these questions please let me know. Thanks

[CATNAPSzzz]

Hi, I am new so understand this question has probably been asked a million times but I can't find it. Is there anywhere I can locate building restrictions? i.e., what you can do for yourself and what you have to contract to be done?

UNLESS SOMETHING HAS CHANGED YOU CAN DO EVERYTHING FOR YOURSELF.BUT, BUT, BUT THAT MEANS YOURSELF(AS A NON-BAHAMIAN) NOT YOUR CONTRACTOR BROTHER-IN-LAW, PLUMBER UNCLE AND-YOU GET THE PICTURE.


What is the duty on materials we fly over ourselves?

DUTY IN NO DIFFERENT REGARDLESS OF WHO BRINGS IT IN. DUTY IS DIFFERENT ON VARIOUS "MATERIALS". FOR INSTANCE PLAIN UNFINISHED LUMBER (NO DUTY BUT YOU WOULD NOT SAVE BY BRINGING IT IN) VS A RAW WOOD BOOKCASE. DUTY AND STAMP TAX CAN RANGE UP TO 57 PERCENT SO ADIVSE PICKING AND CHOOSING CAREFULLY WHAT YOU BRING IN OR BUY IN ABACO. SUGGEST CONTACT ARAWAK OR OTHER CUSTOMS BROKER FOR RATES AND HELP WITH YOUR IMPORTING.

If there is a more appropriate to post these questions please let me know. Thanks
NO-THIS IS THE SPOT!

[Researcher]

Catnapszzz, Thanks for the info. I posed the questions about carrying things into the country because every time our friend flys down, someone asks him to fill his airplane up with supplies. I was wondering whether or not we should do the same. I am pretty sure we are going to contract to have the house built or at least the major portion and then finish it out like we want. Trust me, we have no contractor brothers-in-law or plumber uncles I would want helping out. We did that on our lakehouse and we are still "paying" for it! Thanks again for the help.