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Bermuda Tax Guide

Caribbean
Last verified June 2026
Sources & verification

Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.

Best for

  • Zero personal tax

    0% on personal income — among the simplest tax outcomes globally.

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Foreign income exempt

    Exempt system — overseas income generally outside the local tax net.

  • Corporate-friendly

    0% corporate tax — competitive for founders and holding structures.

  • No wealth tax

    No annual tax on net worth or assets.

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

OECD Pillar Two (15% global minimum tax)

LiveQDMTT from 1 Jan 2025

Bermuda Corporate Income Tax Act 2023: 15% CIT for in-scope MNE entities from 1 Jan 2025. Functions as both Bermuda CIT and Pillar Two-compliant top-up.

See full implementation tracker

Tax Treaty Network

US treatyNo
UK treatyNo
US totalizationNo
Total treaties~4

Limited treaty network. Bermuda uses Model 2 FATCA IGA. Recent Bermuda CIT Act 2023 (15% CIT on in-scope MNEs from 2025) may drive treaty-network expansion.

See full treaty matrix

Data Sources

Last verified: June 2026. Always check official sources before making a decision.

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

US citizen moving to Bermuda? Read this first.

Bermuda has 0% personal income tax, so the US-citizen math is dominated by FEIE plus self-employment tax.

  • •FEIE (Form 2555) shields ~$130k of earned income in 2026. Income above that has no Foreign Tax Credit to offset US tax (no foreign tax was paid), so it's taxed at regular US rates.
  • •Self-employment tax (15.3%) is owed in full — Bermuda has no totalization agreement with the US, so there is no SE-tax exemption.
  • •Investment income (dividends, capital gains, interest) is taxed at standard US rates. No FTC because no Bermuda tax was paid.
  • •Bermuda residency requires 183 days. State residency severance from a sticky state (CA, NY, VA, NM, SC) before international move is the highest-stakes practical step.
Read the full US-citizen moving-abroad guide

Need someone to actually plan Bermuda for you?

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