Bahamas: A concise modern guide

The Bahamas is an Atlantic archipelago of hundreds of islands known for beaches, warm weather, and marine activities. The Bahamian dollar is pegged to the U.S. dollar; U.S. currency is widely accepted. The country has no personal income tax but funds government services through other taxes and fees. Transportation between islands includes flights, ferries, and water taxis. Major islands have modern tourist infrastructure and cellular coverage, though some technical and policy details should be verified. Hurricane season runs June-November, and visitors should respect local marine protections.

Overview

The Bahamas is an island nation in the Atlantic made up of hundreds of islands and thousands of smaller cays. It lies just east of Florida and is known for clear turquoise water, white-sand beaches, and a slow-paced island lifestyle favored by travelers seeking warm weather and marine recreation.

Money and taxes

The official currency is the Bahamian dollar (BSD), which is pegged 1:1 to the U.S. dollar. U.S. dollars are widely accepted across the islands. The Bahamas has a tax system that differs from many countries: there is no personal income tax, and no capital gains or inheritance tax for residents, though the government raises revenue through other forms of taxation and fees, including consumption taxes and business licensing.

Islands and transport

The archipelago includes hundreds of islands and many more cays, grouped into areas commonly called the New Providence and the Family Islands. Nassau (on New Providence) is the capital and main transport hub; other well-known islands include Grand Bahama, Eleuthera, and Exuma.

Travel between islands is possible by scheduled and charter flights, ferry services, and abundant water taxis. On larger islands you'll find car rentals and taxi services; some smaller out islands rely on local boats and limited road networks.

Infrastructure and communications

Major islands have modern tourist infrastructure: hotels, marinas, and restaurants. Cellular coverage and internet service are available across populated islands, with 4G LTE widely deployed and ongoing upgrades to network capacity in some areas. ¹

Banks and ATMs are common in population centers. Travelers' checks are rarely used today; major credit cards are widely accepted in hotels, restaurants, and shops, though cash is useful on smaller islands and in local markets.

Tourism and accommodations

The Bahamas offers a range of lodging, from large resorts and cruise-ship ports to small boutique hotels and guesthouses in the Family Islands. Many hotels arrange airport transfers and island excursions. The Hotels Encouragement Act and other investment incentives historically supported tourism development; developers typically work with local authorities for permits and duty exemptions. ²

Weather and practical tips

The climate is tropical, warm year-round. The official hurricane season runs from June through November; visitors should plan accordingly during those months. Pack reef-safe sunscreen and respect local marine parks and coral reef protections.

Short note on history and governance

The Bahamas has a long colonial and parliamentary history; its modern parliamentary system evolved over centuries. The capital, Nassau, remains the political and commercial center. ³

1. Confirm current Bahamian tax structure details (income tax, capital gains, inheritance) and list of major government revenue sources.
2. Verify the exact number of islands and cays commonly attributed to the Bahamas (e.g., 'about 700 islands and 2,000+ cays').
3. Confirm recent status of telecommunications (availability of 4G/5G and main operators' coverage).
4. Check current provisions and incentives under the Hotels Encouragement Act and related tourism investment laws.
5. Verify historical/parliamentary note (first meeting of Parliament date and any relevant historical detail referenced).