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Bermuda Tax Guide
CaribbeanLast verified June 2026Exempt system
- Top income tax
- 0%
- Capital gains
- 0%
- Corporate
- 0%
- VAT / GST
- 0%
- Residency test
- 183 days
No personal income tax
In short
- Bermuda attracts insurance and reinsurance professionals with no personal income tax, a polished financial centre and a short flight to New York.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: It is among the most expensive places on earth to rent and shop, and payroll tax and mandatory health insurance mean employees do pay tax-like charges.
Verified June 2026 · 3 sources
Recent changes
No changes logged since the last full verification.
Full change logBest 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 Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
No capital gains tax
Wealth & Inheritance
Practical Notes
Payroll tax up to 10.25% (employer portion). Customs duties on imports. Leading insurance/reinsurance hub.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Insurance hub incentives
- 15% for large MNEs
OECD Pillar Two (15% global minimum tax)
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 trackerTax Treaty Network
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 matrixBeyond tax
Living in Bermuda
Bermuda attracts insurance and reinsurance professionals with no personal income tax, a polished financial centre and a short flight to New York.
- Expat hub
- Hamilton
- Monthly budget
- ~$8,000
- Climate
- Subtropical, 22°C
- Time zone
- UTC-4
- Tax100
- Cost of living$$$$$
- Safety75
- Healthcare75
- English98
- Internet150 Mbps
- Warm climate85
- Residency access35
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Work From Bermuda certificateProof of remote employment or means, health insurance; 1-year stay
- Economic Investment CertificateUS$2.5 million qualifying investment in Bermuda
Watch out: It is among the most expensive places on earth to rent and shop, and payroll tax and mandatory health insurance mean employees do pay tax-like charges.
See how Bermuda ranks for remote workers, retirees and familiesData 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?
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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?
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No, Bermuda does not have a wealth tax. No wealth tax
What is the corporate tax rate in Bermuda?
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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.
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