Relocation intelligence

🇧🇲 Moving to Bermuda: tax, residency and cost of living

Bermuda levies no personal income, wealth or capital gains tax on individuals. The main levy on labour is a progressive payroll tax; the employer may deduct an employee portion rising from 0.25% to 12.5% of remuneration (capped at BMD 1,000,000). On top of this a fixed weekly Social Insurance contribution of BMD 37.65 (employee share) applies. There is no VAT, but substantial customs import duties. Large multinationals face a separate 15% Corporate Income Tax since 2025.

Thinking of moving to Bermuda? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
0%
Corporate tax
0%
Capital gains
0%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
136
Safety
7/10
Internet quality
8/10
Visa-free destinations
149
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

No income tax. Employer may deduct a progressive payroll-tax employee portion (0.25% to 12.5%, capped at BMD 1,000,000) plus a fixed social insurance contribution of BMD 37.65/week. No VAT but customs duties. Estate stamp duty on death.

Residency and visas

Residency is mainly via employer-tied work permits. An investment route (Economic Investment Certificate, from BMD 2.5m) grants a residential certificate; permanent status and Bermudian status are highly restricted.

Property ownership

Foreigners may only buy high-end homes above a high ARV threshold, with a licence and a hefty licence fee; the pool available to non-Bermudians is small.

Cost of living and quality of life

Subtropical island climate, high safety and top-quality healthcare, but extremely high cost of living, limited space and hurricane exposure.

Passport and mobility

The Bermudian (BOTC) passport gives access to about 149 destinations visa-free or visa-on-arrival; many Bermudians also travel on a British passport.

Why people move to Bermuda

  • No income, wealth or capital gains tax

    Individuals pay no income tax, wealth tax or capital gains tax; capital gains and crypto are untaxed. The only wage levies are the employee portion of the payroll tax and a fixed social insurance contribution.

  • Stable British jurisdictie with USD peg

    Bermuda is a stable British Overseas Territory with English common law, a strong insurance and financial hub, and a currency pegged 1:1 to the US dollar, removing FX risk for USD income.

Honest trade-offs

  • Bermuda is het duurste land ter wereld om te wonen, met een Numbeo Cost of Living Index van 135,8 en huren en boodschappen die vele tientallen procenten boven de VS liggen.
  • Ondanks nul inkomstenbelasting betaalt de werknemer een progressieve payroll tax tot 12,5% plus een vaste sociale premie, en de meeste ingevoerde goederen worden belast met invoerrechten van vaak rond 25%, waardoor het besteedbaar inkomen sterk wordt uitgehold.
  • Permanente verblijfsstatus en de Bermudiaanse status zijn voor nieuwkomers vrijwel onbereikbaar; werkvergunningen zijn tijdelijk, gebonden aan een specifieke werkgever en moeten periodiek worden verlengd.
  • Buitenlanders mogen slechts een zeer beperkt segment vastgoed kopen, namelijk dure woningen boven een hoge Annual Rental Value drempel, met verplichte licentie en een licentieheffing die kan oplopen tot een aanzienlijk percentage van de koopprijs.

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Sources

Other destinations

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