Bermuda
Top Income Tax
0%
Marginal rate
Corporate Tax
15%
Standard rate
VAT / Sales Tax
0%
Standard rate
Capital Gains
0%
Standard rate
Overview
Bermuda is a renowned offshore financial center with no personal income tax, VAT, or capital gains tax. The 2025 introduction of 15% corporate tax for large multinationals represents a shift. The island offers a safe, English-speaking environment with stunning beaches but extreme cost of living.
Income Tax Brackets
| Income Range (BMD) | Tax Rate |
|---|---|
| 0+ | 0% |
No personal income tax.
Corporate Tax
Standard Rate
15%
15% corporate income tax effective 2025 for MNEs with global revenue over 750M EUR (OECD Pillar Two). 0% for others.
VAT / Sales Tax
Standard Rate
0%
No VAT. Revenue from customs duties, payroll tax, and land tax.
Capital Gains Tax
Standard Rate
0%
No capital gains tax.
Social Security Contributions
Employee
6%
Employer
8%
Self-Employed
14%
Payroll tax: complex rates by salary band. Combined employer/employee ~14% average.
Special Tax Regimes
Digital Nomad Work From Bermuda Certificate
1-year certificate allowing remote workers to live in Bermuda.
Eligibility: Must be employed by or own a company outside Bermuda. Must have health insurance. No minimum income requirement stated.
Digital Nomad Visa
Work From Bermuda Certificate. No strict minimum income. Must work for/own non-Bermuda company. Valid 1 year.
Pros & Cons
Pros
- Zero personal income tax
- Zero capital gains tax
- Safe English-speaking environment
- Work From Bermuda program
- Major insurance/reinsurance hub
Cons
- Extremely high cost of living
- 15% corporate tax for large MNEs from 2025
- Very small territory
- High import costs
- Limited housing
Living Indicators
Cost of Living Index
Expensive
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Bermuda is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Bermuda government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.