| Bermuda Income Tax Rate There are no income taxes or capital gains taxes on individuals in Bermuda. Residents and nonresidents are not subject to any income, withholding and/or capital gains taxes in Bermuda.
Payroll Tax: Both employers and employees are subject to payroll tax if they carry on a business or profession in or from Bermuda. Employers deduct the employee's contributions from their salary. With some exceptions, the rates are as follows:
Annual Payroll Employer has / Tax Rate %
BMD 200,000 - 500,000 10.75%
BMD 500,001 - 1,000,000 12.75%
Over BMD 1,000,000 13.50%
Exempt undertakings 13.50%
Provided an employee is on the payroll at the end of the tax period and has worked for the employer for at least 180 hours during the quarter, a special relief is available in respect of that employee, equal to BMD 600 per employee per quarter. The payroll tax payable in respect of that employee must not be less than 4.75% of their gross remuneration.
Real Property Tax: An annual land tax is levied on the annual rental value of land in Bermuda. The tax is progressive in the sense that the higher the annual rental value, the higher the percentage of tax payable. The tax is levied on the owner. There are six annual rental value bands with the following rates of tax:
Annual Rental Value (BMD) / Tax Rate %
BMD 0 - 11,000 0.60%
BMD 11,001 - 22,000 1.20%
BMD 22,001 - 33,000 2.40%
BMD 33,001 - 44,000 4.80%
BMD 44,001 - 110,000 9.60%
BMD 110,001 or over 18.23%
Pensioners: Bermudians who are 65 years or over who own and occupy a private dwelling are exempt from Land Tax on the unit they occupy.
Tax Rate for Commercial Properties: Commercial properties are taxed on a single rate of tax of 4.4%.
Wealth Tax: There's no wealth tax in Bermuda.
Inheritance/Estate Tax: Stamp duty on estates applies to Bermuda real and personal property.
Bermuda Corporate Tax RateThere is no corporate income tax or capital gains tax in Bermuda.
Companies incorporated in Bermuda are either local companies, of which 60% of ownership and directors must be Bermudian, or exempted companies which can be entirely owned by non-Bermudians and which companies are also exempt from any exchange controls. Bermuda companies pay no tax on income or capital gains. All companies are subject to annual company fees which are based on share capital levels as follows:
Exempted Companies (US $ Equivalent) / Fee US $
Up to $12,000 1,870
$12,001 - 120,000 3,820
$120,001 - 1,200,000 5,890
$1,200,001 - 12,000,000 7,850
$12,000,001 - 100,000,000 9,815
$100,000,001 - 500,000,000 17,530
$500,000,001 and above 29,220
Where the exempted company's business includes the management of any unit trust scheme, the fee will be US $2,725 in respect of each unit trust scheme managed by the company. Where the exempted company is one limited by guarantee, but is not a mutual company, the fee will be US $1,870.
Local Companies (BDM) / Fee (BDM)
Up to BDM 50,000 610
BDM 50,000 - 250,000 910
BDM 250,000 - 500,000 1,520
BDM 500,000 - 1,000,000 3,025
BDM 1,000,000 - 5,000,000 6,050
BDM 5,000,000 - 10,000,000 11,525
BDM 500,000,001 and above 17,285
Principal Business Entities in Bermuda: Local and exempted companies, partnerships and trusts are the principal business entities in Bermuda. Local companies are limited liability companies that are incorporated and controlled by Bermudians to conduct business in Bermuda. Exempted companies are exempted limited liability companies and nonresident (permit) companies that are incorporated by non-Bermudians to conduct business outside of Bermuda from a place of business in Bermuda. Partnerships are similarly classified.
Capital Gains Tax: There is no capital gains tax in Bermuda.
Branch Profits Tax: There is no branch profits tax in Bermuda. Non-Bermudian companies that wish to establish a place of business in Bermuda will require a permit to do so and the company will then be subject to an annual company fee which is currently US $1,870 for general companies. Where the company's principal business is raising money from the public by the issue of bonds or other securities or insurance business or open-ended mutual fund business, the fee is US $3,870. If the business of the company includes the management of any unit trust scheme, the fee is US $2,725 in respect of each unit trust scheme managed by the company.
Foreign Tax Relief: This is not applicable as there are no double taxation arrangements because there is no taxation on income in Bermuda.
Corporate Groups: There is no group tax relief legislation as there are no taxes on income or capital gains in Bermuda.
Withholding Tax: There is no withholding tax in Bermuda.
Stamp Duty: Stamp duty is levied only on transfers of Bermuda property and therefore not relevant to international business to the extent that such business is unlikely to own Bermuda property. Mutual funds are not subject to stamp duties in Bermuda.
Land Tax: Land Tax is a property tax charged on all developed land throughout Bermuda with some exceptions. The tax is charged under the authority of the Land Tax Act 1967 and the Land Valuation and Tax Act 1967. Land Tax in Bermuda is assessed on the annual rental value (ARV) of each valuation unit, depending on whether such unit is a private dwelling or any other dwelling. The owner of a valuation unit is liable for Land Tax. There are six annual rental value bands with the following rates of tax:
Annual Rental Value (BMD) / Tax Rate %
BMD 0 - 11,000 0.60%
BMD 11,001 - 22,000 1.20%
BMD 22,001 - 33,000 2.40%
BMD 33,001 - 44,000 4.80%
BMD 44,001 - 110,000 9.60%
BMD 110,001 or over 18.23%
Pensioners: Bermudians who are 65 years or over who own and occupy a private dwelling are exempt from Land Tax on the unit they occupy.
Tax Rate for Commercial Properties: Commercial properties are taxed on a single rate of tax of 4.4%.
Bermuda Sales Tax / Value Added Tax RateThere are no sales taxes or value added taxes in Bermuda.
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