Bermuda Tax Rates
Bermuda is a British Overseas Territory with no income tax, corporate tax, capital gains tax, or VAT. The government generates revenue primarily through payroll taxes, customs duties, and various fees. Bermuda is the world's leading domicile for insurance and reinsurance companies and hosts a significant financial services sector. The territory is implementing a Corporate Income Tax (CIT) effective for fiscal years beginning on or after January 1, 2025, at a 15% rate to comply with the OECD Pillar Two global minimum tax framework.
Top Income Tax Rate
0%
Corporate Tax Rate
15%
VAT / Sales Tax
0%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Bermuda does not impose any personal income tax. There is no tax on employment income, self-employment income, investment income, or any other form of personal income. This applies to both residents and non-residents. Bermuda has historically relied on payroll taxes as a substitute for income tax, with employers bearing the primary burden.
| Income Range | Tax Rate |
|---|---|
| BMD 0+ | 0% |
Corporate Tax
Bermuda enacted the Corporate Income Tax Act 2023, introducing a 15% corporate income tax effective for fiscal years beginning on or after January 1, 2025. This applies to Bermuda-based entities that are members of multinational enterprise (MNE) groups with annual revenue of EUR 750 million or more, aligning with the OECD Pillar Two Global Minimum Tax. Smaller companies remain exempt from corporate income tax. The tax includes a qualified domestic minimum top-up tax (QDMTT) and an economic transition adjustment for existing Bermuda entities.
Standard Rate
15%
Capital Gains Tax
Bermuda does not impose any capital gains tax. All gains from the sale or disposal of assets are completely tax-free for both individuals and companies (subject to the new CIT for qualifying MNE groups).
Rate
0%
VAT / Sales Tax
Bermuda does not have a VAT, sales tax, or goods and services tax. The government relies on customs duties (ranging from 0% to 33.5% on imported goods), payroll taxes, and various licensing fees. A customs duty relief program exists for certain essential goods. Bermuda has considered but not implemented a general consumption tax.
Standard Rate
0%
Cryptocurrency Tax
Bermuda does not tax cryptocurrency gains or income for individuals, as there is no personal income tax. The Digital Asset Business Act (DABA) of 2018 provides a comprehensive regulatory framework for digital asset businesses, making Bermuda one of the first jurisdictions to regulate crypto. The Bermuda Monetary Authority (BMA) issues licenses to digital asset exchanges, custodians, and other crypto service providers.
Tax Treaties
Bermuda has a limited number of tax agreements. A Tax Information Exchange Agreement (TIEA) exists with the United States and over 40 other jurisdictions. Bermuda participates in the Common Reporting Standard (CRS) for automatic exchange of financial information. With the introduction of CIT, Bermuda may develop a treaty network over time. The territory is also party to the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
Treaty Network
1
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Bermuda
See how much you could save by moving here from your current country.
+$18K
Tax in United States
$24K
24.4% effective
Tax in Bermuda
$7K
6.7% effective
You Save
72.7%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
