The Bahamas, with its stunning beaches, warm weather, and welcoming communities, is a dream destination for many. But whether you're considering relocating, retiring, or staying long-term for work, understanding the cost of living is crucial. While the country offers an incredible lifestyle, it can also be quite expensive compared to many other destinations—especially because much of what’s consumed is imported. Before applying for your Bahamas eVisa, it’s useful to know the average cost of living in the Bahamas in 2025 remains high, especially for housing, dining, and imported goods.

💵 Overview of Bahamas' Currency

The official currency of the Bahamas is the Bahamian Dollar (BSD), which is pegged 1:1 to the U.S. Dollar (USD). This means both currencies are accepted interchangeably throughout the country, making it easy for U.S. travelers to spend without needing to exchange money.

Coins come in denominations of 1, 5, 10, 15, and 25 cents, while banknotes are available in $1, $5, $10, $20, $50, and $100 bills. Bahamian notes are colorful and feature national symbols, historic figures, and marine life.

Most major credit and debit cards are accepted in tourist areas, hotels, and restaurants, though cash is still preferred in smaller shops, local markets, and Out Islands. ATMs are available in cities like Nassau and Freeport, but can be scarce or unreliable in more remote areas.

Tip: Always carry small bills for taxis, local vendors, or tips—especially when island-hopping.

🏠 Housing & Accommodation Costs in the Bahamas

Housing is typically the largest monthly expense. Costs vary significantly depending on the island and type of property.

Nassau & Paradise Island: The capital has the highest rent prices, especially in gated communities and near the coast.

Out Islands: Rentals tend to be more affordable but limited in availability.

🛒 Groceries & Food Cost in Bahamas

Most food is imported, making groceries more expensive than in many other countries.

🍽️ Dining Out Costs in Bahamas

Dining out ranges from affordable street food to upscale waterfront restaurants.

🚗 Transportation costs in Bahamas

Public transportation is limited. Most residents use cars, which can be costly due to import duties and fuel prices.

📶 Cost of Utilities & Internet in Bahamas (Monthly)

Utilities can vary depending on usage, especially due to high air conditioning needs.

🏥 Healthcare Costs in Bahamas

The Bahamas has public and private healthcare options. Expats and long-term visitors often use private clinics.

• Doctor's visit (private): $75–$150
• Health insurance (monthly): $150–$400, depending on coverage
• Prescription medications: Often more expensive than in the U.S. or Europe

🧼 Personal Care Costs in the Bahamas

Personal care products and services in the Bahamas can be moderately expensive, especially for imported goods and private healthcare. Here's a look at some typical costs:

👗 Clothing and Shoes Costs in the Bahamas

Shopping for clothes and footwear in the Bahamas can be slightly pricier than in some other regions due to import taxes and brand markups. Here’s an overview of typical prices:

🧒 Education Costs for Families in Bahamas

If you're moving with children, education is a key consideration. Public schools are available but many expats prefer private institutions.

🏖️ Sports, Leisure, and Entertainment Costs in the Bahamas

The Bahamas offers a variety of sports, leisure, and entertainment options for locals and tourists alike. Here’s an overview of usual costs for these activities.

🧾 Monthly Cost Comparison Chart: Living in the Bahamas (Estimated in USD)

|💰 Monthly Total (Approx.) | $1,550 – $2,350 | $3,750 – $5,800 | $7,900 – $12,700+ |

📝 Important Notes:

Budget lifestyle fits minimalists or digital nomads renting modest apartments and eating mostly at home.

Mid-range suits couples or professionals wanting a balanced lifestyle with some comforts.

Luxury caters to families or high-income earners with private schooling, fine dining, and premium rentals.

📍 Bahamas Island Differences in Cost of Living

The cost of living in the Bahamas can vary significantly depending on which island you choose to live on or visit. Here's a breakdown of the differences:

New Providence/Nassau: As the economic and political center of the Bahamas, New Providence—home to the capital city, Nassau—has the highest cost of living. Housing, dining, and entertainment tend to be more expensive due to higher demand, dense population, and greater availability of modern amenities. It's ideal for those who want convenience, but it comes with a premium price tag.

Grand Bahama (Freeport): Grand Bahama, particularly the city of Freeport, offers a more affordable alternative to Nassau. While still developed, costs for rent, groceries, and daily living can be noticeably lower. It's a popular choice for budget-conscious expats and those seeking a quieter lifestyle with good infrastructure.

Out Islands (Family Islands): The Out Islands, such as Exuma, Eleuthera, and Abaco, vary widely in cost. Some are quite remote, and while housing may be cheaper, the cost of imported goods and services can be high due to limited access and expensive logistics. These islands appeal to those looking for tranquility and a strong connection to nature, but they often come with higher transportation and shipping costs.

📊 Bahamas Inflation Trends

In December 2024, the Bahamas recorded an annual inflation rate of 0.0%, signaling a stabilization after five consecutive months of declining year-over-year inflation. This leveling off suggests that the general rise in consumer prices had temporarily paused at the end of the year.

Earlier in the year, in March 2024, inflation spiked by 1.6% compared to February. This increase was mainly driven by rising costs in housing, utilities, and transportation — three key areas that significantly affect everyday expenses.

By the end of December 2024, the Consumer Price Index (CPI) had risen slightly to 121.75 points from 121.13 points in November, reflecting a modest 0.5% month-over-month increase. This movement points to continued, although mild, fluctuations in the cost of goods and services.

Looking ahead, projections show the CPI may continue rising steadily, potentially reaching around 124.69 points in 2026 and 126.56 in 2027. This gradual increase highlights the importance of keeping an eye on economic trends when planning long-term finances in the Bahamas.

💰 How the Bahamas' Economy Affects Daily Living Costs

The cost of living in the Bahamas is strongly influenced by the country’s internal economy. Here are the main reasons why:

• Most Goods Are Imported: The Bahamas brings in most of its food, fuel, and other products from other countries. This makes everyday items more expensive due to shipping costs, taxes, and import duties.
• Tourism Affects Prices: Tourism is a big part of the economy, and areas popular with visitors—like Nassau and Paradise Island—tend to have higher prices for food, rent, and services.
• Expensive Housing and Construction: Land is limited, and building materials are imported. This makes housing and construction more costly, especially in busy or developed areas.
• High Utility Costs: Electricity, water, and internet services can be expensive due to the small-scale infrastructure and fuel needs, especially on smaller islands.
• VAT and Taxes: A 10% Value-Added Tax (VAT) is added to most purchases, which raises the overall price of goods and services.

✅ Is the Bahamas Expensive?

The Bahamas offers an exceptional lifestyle, but it comes at a premium. Living costs are influenced by island location, lifestyle choices, and housing preferences. Those who shop locally, rent outside tourist hubs, and adapt to island life can manage on a moderate budget. However, for a comfortable lifestyle with amenities, it’s wise to budget accordingly.