Verified Facts
Bermuda has a unique tax system with no income tax, payroll tax, or wealth tax for residents, but it does have a complex set of rules and regulations that expats and businesses need to navigate.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Bermuda has a territorial tax system, meaning that only income earned within the country is subject to tax. This is in contrast to a worldwide tax system, where all income earned by residents is subject to tax, regardless of where it is earned. Bermuda's tax system is designed to attract foreign investment and talent to the island, and it has a number of incentives and exemptions to encourage businesses and individuals to set up operations there. The country's residency rules for tax purposes are based on the number of days spent in Bermuda, with individuals who spend more than 90 days in the country in a calendar year considered residents for tax purposes.
Bermuda's tax system is also characterized by a lack of taxation on income, with no income tax, payroll tax, or wealth tax levied on residents. This makes it an attractive destination for high-net-worth individuals and businesses looking to minimize their tax liability. However, the country does have a number of other taxes and fees, including a payroll tax that is levied on employers, and a land tax that is levied on property owners. The government also generates revenue from customs duties and excise taxes on imported goods.
Personal Income Tax
Since Bermuda has no income tax, there are no income tax brackets or tax rates to report. However, individuals who are considered residents for tax purposes may still be required to file a tax return, even if they have no taxable income. The tax authority in Bermuda, the Bermuda Tax Authority, provides guidance on the filing requirements and any necessary forms or documentation.
| Income Bracket (BMD) | Tax Rate |
|---|---|
| 0 - 100,000 | 0% |
| 100,001 - 200,000 | 0% |
| 200,001 - 500,000 | 0% |
| 500,001 and above | 0% |
| Individuals who are considered residents for tax purposes may be eligible for certain deductions and allowances, such as a deduction for mortgage interest or charitable donations. However, these deductions are limited and subject to certain conditions and restrictions. Individuals who are required to file a tax return must do so by the filing deadline, which is typically in June of each year. |
Corporate & Business Tax
- Bermuda has a zero corporate tax rate for most companies, making it an attractive destination for businesses looking to minimize their tax liability.
- The country has a number of incentives for small businesses, including exemptions from certain taxes and fees, and access to government funding and support programs.
- Bermuda has a number of free zones, including the Bermuda International Business Park, which offer businesses a range of benefits, including exemptions from certain taxes and fees, and streamlined regulatory procedures.
- Companies that are incorporated in Bermuda must register with the Bermuda Monetary Authority, which is responsible for regulating and supervising the financial sector.
- Businesses that operate in Bermuda must also comply with certain regulatory requirements, including anti-money laundering and know-your-customer rules.
VAT / Sales Tax
- Bermuda has no value-added tax (VAT) or goods and services tax (GST), making it an attractive destination for businesses and individuals looking to minimize their tax liability.
- The country has a number of excise taxes on imported goods, including taxes on tobacco, alcohol, and fuel.
- Certain exemptions apply, including exemptions for certain types of goods, such as food and medicine.
- Bermuda has a tourist refund scheme, which allows visitors to claim a refund on certain taxes and fees paid during their stay.
For Expats & Foreign Workers
- Expats and foreign workers who are considered tax residents in Bermuda may be subject to certain tax obligations, including the requirement to file a tax return.
- Bermuda has a number of double taxation treaties with other countries, which can help to minimize tax liability for individuals and businesses.
- Expats and foreign workers may be required to register with the Bermuda Tax Authority, which is responsible for administering the country's tax system.
- Certain social security benefits may be available to expats and foreign workers, including access to the country's healthcare system.
- Expats and foreign workers who are remitting income from Bermuda to another country may be subject to certain tax obligations, including the requirement to file a tax return.
- Bermuda has a number of incentives for expats, including exemptions from certain taxes and fees, and access to government funding and support programs.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is not subject to tax in Bermuda.
- Cryptocurrency is not subject to tax in Bermuda, although certain tax obligations may apply, including the requirement to file a tax return.
- Dividends paid by Bermuda companies to non-resident shareholders are not subject to withholding tax.
- Certain reporting requirements apply to individuals and businesses that hold or trade cryptocurrency, including the requirement to report certain transactions to the Bermuda Monetary Authority.