Starting a business in
🇧🇲Bermuda
Checked November 4, 2026 · How we score
Corporate tax
0%
Top income tax
0%
Setup from
$3,500
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Bermuda
| Corporate income tax | 0% 0% for the vast majority of companies. Bermuda's Corporate Income Tax Act 2023 imposes a 15% tax on in-scope MNE groups (revenue EUR 750M+) for fiscal years beginning on or after 1 January 2025, with a Tax Credits Act 2025 offering credits for certain activities. Exempted companies pay annual government fees based on authorised capital. |
|---|---|
| Personal income tax (top) | 0% No personal income tax or capital gains tax. Employees and employers pay payroll tax on remuneration (the main source of government revenue), and there is land tax and stamp duty. |
| Tax system | No personal income tax |
| Capital gains tax | 0% |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | None |
| Social security | No VAT or sales tax; customs duty of around 25% on most imports. Payroll tax is graduated by employer payroll size, plus social insurance contributions and health insurance. |
Forming a company in Bermuda
| Usual entity | Exempted Company (limited by shares) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $3,500–$8,000 |
| Annual running cost | $4,000–$12k |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
The Work From Bermuda certificate allows remote workers to live in Bermuda for up to a year (renewable) for a government fee, but it does not make them tax residents for local income, as there is none. Permanent residence and citizenship are very restricted (Bermudian status rules), and non-Bermudians usually need work permits.
| Digital nomad visa | Work From Bermuda Certificate |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 5/5 (1 = easiest) |
Special tax regimes
Corporate Income Tax Act 2023 (MNE tax)
15% tax on in-scope Bermuda constituent entities of multinational groups with EUR 750M+ revenue, effective for fiscal years from 2025; Bermuda does not collect Pillar Two top-up tax itself.
Exempted company
The standard vehicle for insurance, reinsurance, funds and holding: limited in trading with Bermudians, with a private beneficial-ownership register and BMA consent required on incorporation.
Digital Asset Business Act
A licensing regime for crypto and digital asset firms, administered by the Bermuda Monetary Authority.
Pros and cons
Why founders pick Bermuda
- No corporate or personal income tax for most companies and residents
- Highly regarded regulator (BMA) and OECD-aligned reputation
- Established insurance and digital asset licensing regimes
- English common law with Privy Council appeal
Watch out for
- Highest cost of living and professional fees in the Caribbean region
- 15% CIT applies to large MNE groups from 2025
- BMA approvals and local registered office add time and cost
- Strict immigration controls and limited work permits
Best for: Insurance, reinsurance and fund structures · Web3 and digital-asset firms seeking a regulated base · Wealthy remote workers wanting a stable, high-reputation island
Bermuda: common questions
Does Bermuda have corporate income tax?
Mostly no. Bermuda taxes companies at 15% only if they are Bermuda constituent entities of multinational groups with annual revenue of EUR 750 million or more, starting with fiscal years beginning on or after 1 January 2025. Other companies pay no income tax but pay government fees and employers pay payroll tax.
How much does it cost to set up a company in Bermuda?
An exempted company typically costs about US$3,500–US$8,000 to set up, including legal fees and a registered office, and about US$4,000–US$12,000 per year including government fees based on authorised capital, corporate services and filings. Bermuda is one of the more expensive offshore jurisdictions.
Is Bermuda on the EU tax blacklist?
No. Bermuda is not on Annex I or Annex II of the EU list of non-cooperative jurisdictions per the October 2026 update. It has economic substance legislation and has committed to OECD transparency standards.
Can I live in Bermuda as a remote worker?
Yes. The Work From Bermuda certificate lets you stay for up to a year (renewable) while working for a foreign employer. Bermuda has no personal income tax, but living costs are among the highest in the world, and your home country may still tax you.
Is Bermuda a tax haven?
Bermuda is commonly described as an offshore financial centre because it has no personal or general corporate income tax. It introduced a 15% minimum tax on large multinationals from 2025 to comply with global tax standards and is generally regarded as cooperative.
Sources
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.