Currency & Payment

The Bahamas uses the Bahamian dollar (BSD, B$), divided into 100 cents. The Bahamian dollar is pegged 1:1 to the US dollar, and US dollars circulate freely alongside it, so you generally do not need to exchange currency. Change may be given in a mix of Bahamian and US notes and coins.

Because US dollars are accepted everywhere at par, most visitors never need to exchange money. If you carry another currency, you can change it at banks or at the airport, though it is often easier to simply arrive with US dollars or use cards. Note that Bahamian dollars can be hard to spend outside the country, so change them back before you leave.

Cards are widely accepted at resorts, hotels, larger shops and tourist areas, with Visa and Mastercard the most common and American Express also taken in many places. On the smaller Out Islands and at local shops, market stalls and small eateries, cash is still king, so carry some US or Bahamian dollars as a backup.

ATMs are easy to find in Nassau and Freeport, run by banks such as RBC (Royal Bank of Canada), Scotiabank, CIBC FirstCaribbean and Commonwealth Bank. Machines usually dispense Bahamian dollars and sometimes US dollars. On the smaller Out Islands ATMs are limited, so withdraw cash before you go. Watch for foreign-card fees and decline home-currency conversion (DCC) for a better rate.

Mobile and contactless payments are growing in resorts and urban areas, and Apple Pay and Google Pay work wherever contactless cards are accepted. There is also a domestic digital currency, the Sand Dollar, aimed mainly at residents. For visitors, contactless cards plus Apple Pay or Google Pay are the most reliable options, backed up by cash on the Out Islands.

Tipping is customary in The Bahamas. Restaurants often add a service charge of around 15 percent to the bill; check for it, and if it is not included, leaving about 15 percent is normal. It is also customary to tip hotel housekeeping, porters (about USD 1–2 per bag), taxi drivers and tour guides. US or Bahamian dollars are both fine for tips.

The Bahamas is a relatively expensive destination. Because almost everything is imported, groceries, dining and drinks cost more than in many countries, and resort areas like Nassau and Paradise Island are pricier still. VAT is added to most goods and services. Budgeting extra for meals, tours and transport, and eating at local spots, helps keep costs down.

The Bahamas applies VAT to most goods and services, but there is no general tourist VAT-refund scheme like the tax-free shopping found in Europe. In most cases visitors cannot reclaim VAT on ordinary purchases. Some duty-free shops sell certain goods free of duty at point of sale. Check current rules with the shop or the tax authority.