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Bermuda Tax Guide

Caribbean
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
100/100
Extremely Tax Friendly
Business Tax Score
88/100
Very Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency

Income Tax Rates

Top Marginal Rate
0%
Structure
No personal income tax

Foreign Income Treatment

System
Exempt
Details
No personal income tax

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Practical Notes

Payroll tax up to 10.25% (employer portion). Customs duties on imports. Leading insurance/reinsurance hub.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
0%
Effective Rate Note
No corporate income tax; 15% corporate tax introduced for large MNEs (revenue >€750m) from 2025
Free Zone / Incentives
Insurance and reinsurance sector focus

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
0%
Note
No VAT; payroll tax applies

Compliance & Substance

Substance Requirements
High for insurance sector - regulatory requirements
Compliance Friction
Moderate - well-regulated insurance center

Notable Regimes

  • Insurance hub incentives
  • 15% for large MNEs

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Bermuda?

Bermuda has a top personal income tax rate of 0%. The tax structure is: No personal income tax. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Bermuda?

Bermuda uses a exempt system for foreign income. No personal income tax

What are the residency requirements for Bermuda?

Tax residency in Bermuda generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.

Is there a wealth tax in Bermuda?

No, Bermuda does not have a wealth tax. No wealth tax

What is the corporate tax rate in Bermuda?

The corporate tax rate in Bermuda is 0%. No corporate income tax; 15% corporate tax introduced for large MNEs (revenue >€750m) from 2025