Most companies pay a contractor in the Bahamas by sending dollars or Bahamian dollars to a Bahamian bank account in the contractor’s own name, by SWIFT or a transfer service such as Wise, against an invoice. The Bahamian dollar is fixed at parity with the US dollar (Central Bank of The Bahamas, checked 2026-10-29), so a USD contract is easy to price. The choice depends on whether you pay one person or a team, and on how close the work is to a job.
The Bahamas levies no personal income tax and no withholding tax on any payments, so a foreign payer pays gross and withholds nothing (PwC, reviewed 21 July 2026, checked 2026-10-29). The contractor’s obligations are different: a business licence under the Business Licence Act, 2023, 10% VAT once taxable revenue passes B$100,000 in any 12 months, and National Insurance at 10.3% on earnings up to B$830 a week (PwC, checked 2026-10-29).
The one rule that catches payers is exchange control. On 31 March 2026 the Central Bank barred foreign-currency settlement between Bahamian residents, while allowing resident foreign-currency accounts to receive foreign-currency revenue (Central Bank, checked 2026-10-29). A payer abroad falls on the permitted side. The legal risk is classification: the Employment Act counts an implied contract of service as employment. For a team or a document behind every payment, use a contractor platform; for a long single-client engagement, a Contractor of Record. Taxes and classification are in our hiring guide.
Key facts
Currency
Bahamian dollar (BSD), fixed at parity with the US dollar; contracts with foreign clients are often written in USD
Contractor's usual legal form
An individual or a company carrying on business, which needs a business licence under the Business Licence Act, 2023
Working payout rails
SWIFT to a Bahamian bank account, Wise (BSD from some sender countries, USD by SWIFT from others), payout platforms paying USD; USDT where a platform offers it
Personal income tax
None; the country imposes no withholding tax on any payments, so a foreign payer withholds nothing
VAT
10%, with registration required once taxable revenue passes B$100,000 in any 12 months; services used outside the country are zero-rated
Contractor's National Insurance
Self-employed pay 10.3% on earnings up to B$830 a week, on an income level they declare to the NIB each year
FX / currency control
Exchange Control applies to residents; the Central Bank's 31 March 2026 notice bars foreign-currency settlement between residents but allows foreign-currency revenue from abroad
Documents the payer should keep
Services contract, the contractor's invoice with business licence details for each payment, payment confirmation; Form W-8BEN for US payers
How to choose: five questions for paying a contractor in the Bahamas
1. Do you pay one contractor or a team?
For one contractor you can wire dollars to a Bahamian bank account or use Wise, which needs only the account details. Wise’s US page sends USD and delivers BSD to the recipient’s bank, and quoted USD 39.30 in fees to send USD 1,000 by direct debit (wise.com, checked 2026-10-29). From the UAE, Wise says BSD transfers are not available yet (wise.com, checked 2026-10-29), so test your sending country before relying on it. For a team, one platform runs onboarding, invoices and payouts in one place instead of a wire per person.
2. Do you need a document behind every payment?
A Bahamian contractor who carries on business needs a licence under the Business Licence Act, 2023 (Chambers, checked 2026-10-29), and the Act’s tax is charged on turnover, 0.5% from B$100,000 and nothing below it. A contractor who is VAT-registered, which is required above B$100,000 of taxable revenue in any 12 months (PwC, checked 2026-10-29), also has a VAT number to show. If your accountant wants an invoice, a signed contract and a payment confirmation for each month, pick a platform that produces and stores them. If a wire plus an emailed invoice satisfies you, you do not need one.
3. Dollars or Bahamian dollars?
The Bahamian dollar is fixed at parity with the US dollar (Central Bank, checked 2026-10-29), so a USD contract is easy to price. The Central Bank’s 31 March 2026 notice says resident foreign-currency accounts are authorised to receive revenue denominated in foreign currency, and that banks may process invoiced payments for bona fide external transactions (Central Bank, checked 2026-10-29). A payer abroad sending USD for services is that case; ask the contractor’s bank to confirm. Dollars: a wire or a platform paying USD. Bahamian dollars: Wise from a supported country.
4. How much do you pay each month?
Fees come as a percentage per payout or a monthly seat. At 3%, a percentage fee equals a $29 seat at about $967 a month, a $40 seat at about $1,333 and a $49 seat at about $1,633. Below that, a percentage fee costs less; above it a seat does. The contractor’s NIB contribution does not enter this arithmetic: it is the contractor’s own cost, 10.3% on earnings up to B$830 a week (PwC, checked 2026-10-29), and a contractor who quotes net needs a higher invoice to cover it.
5. How close is the engagement to employment?
The Employment Act defines a contract of employment as a contract of service, whether express or implied, written or oral (Employment Act 2001, checked 2026-10-29). A full-time contractor with one client, your hours and your instructions fits the facts a claimant would use; see contractor misclassification. If that is your contractor, use a Contractor of Record. 4dev acts as Contractor of Record — the contracting party for each contractor — which reduces reclassification risk; Deel, Remote and Multiplier also list one. Read the liability clause in the COR contract, not the product name. If the role is a job, hire through an EOR.
Rule of thumb. One contractor who wants dollars, under about $1,600 a month: a wire, Wise or a percentage-fee platform. A team, or a document with every payment: a contractor platform. Single-client, full-time work: a Contractor of Record, or an EOR if it is a job. Compare the field in the contractor payouts rating.
A contractor platform that acts as Contractor of Record: 4dev contracts with each contractor and the client contracts with 4dev, which reduces reclassification risk without removing it. It onboards contractors with automatic KYC, keeps IP assignment and closing documents in one flow, and pays out by bank transfer, card or USDT across 150+ countries on a published fee of 3% or less.
Why it fitsContract, closing document and payout for each invoice in one flow, so the licence and invoice records sit with the payment; 3% or less per payout, 0% for contractors.
A mature, transparent-fee cross-border payments leader: pay up to 1,000 contractors at once via BatchTransfer, send to 160 countries and hold 40 currencies at the mid-market rate with upfront, usage-based fees. Excellent as a contractor-payout rail — but it is not a contractor-management or compliance tool (no contracts, no EOR/COR, no payroll).
7.6/10
★ 4.3 · 304k reviews
Price
From 0.23% (fee varies by currency)
FX
mid-market rate, no markup
Payout speed
96% of payments in under 24h
Documents
Invoices & payment links; no contracts
Coverage
160+ countries
Payout methods
bank transfer, local wallet schemes (e.g. GCash in the Philippines, M-Pesa in Kenya)
Batch runs
yes
Payout API
yes
What stands out
pay up to 1,000 contractors at once via BatchTransfer
send to 160 countries and territories; hold 40 currencies
transparent usage-based pricing 'From 0.23%' at the mid-market rate with no subscription
Not a fit for
companies needing contractor contracts, onboarding or compliance management
buyers needing an Employer of Record or a Contractor of Record
Why it fitsWise's US page sends USD and delivers BSD to the Bahamian bank directly, with USD 39.30 quoted to send USD 1,000 by direct debit; check your sending country first.
Why it fitsThe Employment Act counts an implied contract of service as employment; for one full-time contractor, Deel's $325 Contractor of Record is the contracting party and reduces reclassification risk.
A compliance-first EOR built on 100+ owned entities — fewer countries, but no third-party handoffs.
8.4/10
★ 4.5 · 9094 reviews
Price
$599/mo per employee
FX
Remote applies its own FX rate when billing and payroll currencies differ; one rate per monthly billing cycle, locked for the cycle. Contractor payouts: partner may charge 1–2%
Why it fitsApprove each invoice in the platform before paying, so the contractor's licence number is checked up front; $29 per contractor a month, with Contractor of Record from $325 for riskier cases.
A global employment specialist with EOR in 150+ countries on an owned-entity network, a dedicated Contractor of Record, global payroll and published pricing — strong for compliant hiring across many markets with transparent EOR/contractor costs.
8.4/10
★ 4.8 · 5037 reviews
Price
Starting at $459/mo per employee
Payout speed
Same-day payment processing
Documents
Auto invoices + compliant contracts
Contractor onboarding
Activation in 1–2 business days
Coverage
150+ countries
Batch runs
yes
What stands out
EOR live in 150+ countries on an owned-entity network
dedicated Contractor of Record (classification, contracts, tax, payments)
published pricing for EOR ($459 annual), Contractor of Record ($400) and contractors ($40), no minimum headcount
Not a fit for
buyers needing an all-in-one HR/IT/Finance suite beyond global employment
buyers who need all-inclusive prices with no add-ons or implementation fees
Why it fitsA $40 monthly seat suits a contract written in USD at parity with BSD, with invoices and payment confirmations kept together for the contractor's licence file.
A contractor-payments-first platform that pays workers in 150+ countries and bundles a financial account and card for the contractor. It deliberately positions against EOR ('Global hiring doesn't need EOR'), so it fits contractor-heavy teams rather than companies needing to employ staff abroad.
7.6/10
★ 4.0 · 436 reviews
Price
Starting from $49/month per contractor
Payout speed
80% of transfers instant
Documents
Contracts + tax forms, automated
Contractor onboarding
Onboarding under 15 min
Coverage
150+ countries
Payout methods
Bank transfer, Digital wallets
Batch runs
yes
What stands out
pays contractors in 150+ countries with multi-currency payouts
publishes an entry price ('Starting from $49/month') where most peers are quote-only
worker-facing Global Account and Visa card included
Not a fit for
companies that need to employ staff abroad via an EOR
buyers who require published security certifications (SOC 2 / ISO 27001) up front
Why it fitsPays USD into the contractor's Ontop Global Account from $49 a month; the contractor handles their own NIB and tax, which matches a payer that withholds nothing.
Remote applies its own FX rate when billing and payroll currencies differ; one rate per monthly billing cycle, locked for the cycle. Contractor payouts: partner may charge 1–2%
One basket for all of them: 10 contractors at $3,000 a month, so $30,000 of payouts a month. A percentage of volume and a per-seat fee cannot be compared any other way.
The Central Bank administers Exchange Control under the Exchange Control Act, 1952 and Regulations, 1956, which govern foreign-currency dealings between residents and non-residents (Central Bank, checked 2026-10-29). A payer abroad sending money in is on the permitted side, but residents face rules on how they hold and use foreign currency, summarised below.
Rail
What the contractor sees
Timing
Cost
Limits
SWIFT wire to a Bahamian bank account
Funds in their own account, in USD or BSD
Depends on intermediary banks
Your bank’s fee, plus intermediary and receiving-bank charges
Agree in the contract who bears them; the account must be able to hold the currency sent
Wise
Bahamian dollars in a bank account, where BSD is open from the sender’s country
Wise’s page shows arrival in seconds, with 95% of transfers in under a day (wise.com, checked 2026-10-29)
Fee quoted before sending; USD 39.30 to send USD 1,000 by direct debit from the US
USD into the platform account or a bank, per platform; Ontop pays into an Ontop Global Account in USD (getontop.com, checked 2026-10-29)
Per platform
Percentage, seat or Contractor of Record fee (see the cards above)
Platform KYC; documents come from the platform
USDT
Tokens in a wallet
Minutes
Network fee plus the exchange’s spread on conversion
No Bahamian rule found on documenting it; settle with the accountants
What the contractor needs
A freelance developer, designer or writer in the Bahamas carries on business in the sense of the Business Licence Act, 2023, which applies to persons carrying on business in or from within The Bahamas. Licences expire on 31 December, with renewal due by 31 January (Chambers, checked 2026-10-29). The tax on a licence is turnover-based: exempt under B$100,000, then 0.5% from B$100,000 to B$500,000 and 0.75% from B$500,000 to B$5 million, with no deductions for costs.
Next is National Insurance. A self-employed person contributes 10.3% on earnings up to B$830 a week (PwC, reviewed 21 July 2026, checked 2026-10-29), on an expected income level they set at the start of each year, which the NIB can review (NIB, checked 2026-10-29). At the ceiling that is about B$85 a week.
There is no personal income tax (PwC, reviewed 21 July 2026, checked 2026-10-29). A contractor whose taxable revenue passes B$100,000 in any 12 months must register for 10% VAT (PwC, checked 2026-10-29). Classification, IP and the contract are in our hiring guide.
Documents and tax on the payer’s side
Bahamian withholding. None. The Bahamas does not impose withholding taxes on any payments (PwC, reviewed 21 July 2026, checked 2026-10-29). A foreign client pays the invoice gross.
US payers. The Bahamas is not on the IRS list of income tax treaties (irs.gov, checked 2026-10-29). Pay for services performed in the Bahamas is foreign-source income (irs.gov, checked 2026-10-29), with no US withholding and no Form 1099-NEC. An individual signs Form W-8BEN.
What to keep on file:
the signed services contract, with currency, receiving account and who bears transfer charges;
the contractor’s invoice for each payment, with licence and, if registered, VAT details;
payment confirmations with the invoice number in the reference;
the W-8BEN, if you are a US payer.
On a platform or Contractor of Record model you keep the platform’s invoice; the platform holds the contractor’s documents.
Where it breaks
Two Bahamian residents settling in dollars. The Central Bank’s 31 March 2026 notice bars foreign-currency settlement between residents, salaries included, unless it approves (Central Bank, checked 2026-10-29). If you pay through a Bahamian entity, pay in BSD.
An account that cannot hold dollars. Resident foreign-currency accounts abroad need the Central Bank’s prior approval, and in the Bahamas business trade accounts up to B$100,000 can be approved by commercial banks (same notice). A contractor should confirm the account before you wire USD.
BSD not open from your country. Wise lists some sender countries where BSD is not yet available (wise.com, checked 2026-10-29); use a SWIFT wire or a platform instead.
The contractor quotes net. Nothing is withheld, so NIB at 10.3% and any licence tax come out of the contractor’s pocket; fix gross or net in the contract.
Zero-rated VAT needs paperwork. The VAT comptroller has said a supplier must obtain records from the recipient to support zero-rating for services used abroad (Tribune, checked 2026-10-29); expect the contractor to ask you for a short statement of where the service is used.
Intermediary charges. On a SWIFT wire, less than the invoice can arrive; fix who pays in the contract.
Reclassification. The Employment Act treats an implied contract of service as employment (Employment Act 2001, checked 2026-10-29), so one client, set hours and your instructions weigh against a contractor label.
Frequently asked questions
What's the cheapest way to pay a contractor in the Bahamas?
For one contractor, Wise is usually the cheapest: its US page delivers BSD to a Bahamian bank account and quoted USD 39.30 to send USD 1,000 by direct debit (wise.com, checked 2026-10-29). Availability depends on where you send from; Wise's UAE page says BSD transfers are not available yet. A SWIFT wire costs your bank's fee plus intermediary charges. If you also need a contract and a document behind every payment, a 3% fee costs less than a $49 monthly seat below about $1,633 a month per contractor.
Can I pay a contractor in the Bahamas in USD?
Yes, if the contractor's account can receive it. The Bahamian dollar is fixed at parity with the US dollar (centralbankbahamas.com, checked 2026-10-29), and the Central Bank's 31 March 2026 notice says resident foreign-currency accounts may receive revenue denominated in foreign currency (centralbankbahamas.com, checked 2026-10-29). The restriction targets payments between two Bahamian residents, not a payer abroad. Ask the contractor's bank to confirm the account type.
Do I need to withhold tax when paying a contractor in the Bahamas?
No. PwC's tax summary says the Bahamas has no personal income tax and imposes no withholding tax on any payments (taxsummaries.pwc.com, reviewed 21 July 2026, checked 2026-10-29). A US payer collects Form W-8BEN and files no 1099-NEC, because pay for work done in the Bahamas is foreign-source income (irs.gov, checked 2026-10-29).
Does a contractor in the Bahamas need a business licence?
A freelancer selling services carries on business and the Business Licence Act, 2023 applies to persons carrying on business in or from within The Bahamas (chambers.com, checked 2026-10-29). Turnover under B$100,000 is exempt from the licence tax; between B$100,000 and B$500,000 it is 0.5% of turnover. Ask the contractor for the licence details before the first payment.
Does a Bahamian contractor pay National Insurance?
Yes. Self-employed persons contribute 10.3% on earnings up to B$830 a week (taxsummaries.pwc.com, reviewed 21 July 2026, checked 2026-10-29). They set an expected income level at the start of each year, which the NIB can review (nib-bahamas.com, checked 2026-10-29). The payer pays none of it, but a contractor quoting a net rate has to cover it.
Does the contractor charge VAT to a client abroad?
Usually not. VAT is 10% and registration is mandatory above B$100,000 of taxable revenue in any 12 months (taxsummaries.pwc.com, checked 2026-10-29). The VAT comptroller has said a service whose benefit is used outside The Bahamas is an export and zero-rated, and the supplier needs records from the recipient to support it (tribune242.com, checked 2026-10-29). Ask the contractor how they treat it.
Can a contractor in the Bahamas be reclassified as an employee?
Yes. The Employment Act defines a contract of employment as a contract of service, express or implied, written or oral (Employment Act 2001, checked 2026-10-29), so the label does not decide it. A Contractor of Record is the contracting party and reduces the risk; it does not remove it. Read the liability clause, not the product name.
Is there a US–Bahamas tax treaty?
No. The Bahamas does not appear on the IRS list of income tax treaties (irs.gov, checked 2026-10-29). For services a contractor performs in the Bahamas the pay is foreign-source income, so a US payer has no US withholding to apply either way.
Where to go next
These platforms head to head
Hiring employees instead
Paying contractors elsewhere
Sources
The vendor pages every fact came from, with the date each was checked.
6 platforms tracked in this category. Every fact in the entries above comes from the vendor's own pages — each carries a footnote with the source and the date we checked it, and where a vendor publishes nothing we leave the field out rather than guess. Scores are ours and are not for sale. Full methodology · Report an error
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