🇧🇲 Bermuda · Taxes
Taxes in Bermuda
Bermuda has no income tax, no corporate tax and no VAT - but there are other mandatory payments: social insurance, duties and fees.
Bermuda has no classic income tax, but there are several mandatory payments: social insurance, an employer payroll tax, customs duties and stamp duty.
Residency and work
Foreign nationals who are not Bermudians need a work permit in order to work - working without one is illegal.
After the COVID-19 pandemic the authorities introduced the Work from Bermuda Certificate, a temporary permit that allows certain individuals and students to work and study remotely from Bermuda.
Social insurance
The contributory pension system requires employers to make monthly contributions to the pension fund for every employee over 17 who works more than four hours a week. The employer must register each employee and obtain a social insurance number for them; a breach carries civil or criminal liability.
Employees pay their share through weekly payroll deductions. Students under 26 working full time during the holidays, and their employers, are fully exempt from contributions. Employees over 65 do not pay their half, but the employer still has to pay its part.
The current total contribution per employee per week is 71.84 BMD: 35.92 BMD from the employer and 35.92 BMD from the employee.
Expatriates who have paid contributions but cannot draw a pension because those contributions are insufficient may apply at 65 for a refund of the full amount paid, including the employer's share.
Payroll tax
Employers in Bermuda pay payroll tax. The rate depends on the employer category or on the company's total annual payroll.
Customs duties
Duty is charged on almost all goods brought onto the island. The personal exemption on arrival is 200 BMD for residents and 50 BMD for non-residents. The most common rate is 25%, though other rates apply to certain categories of goods.
New residents are exempt from duty on personal and professional effects for 90 days after arrival, provided the goods have been in their possession for at least six months.
Other taxes and fees
- Excise duties - not charged.
- Transfer tax - not charged.
- Stamp duty - charged on a wide range of legal documents: property transfers, deeds, leases. The rate depends on the type of document and its value and is revised by parliament from time to time.
- Foreign currency purchase tax - 1.25% on the amount a Bermuda resident buys at a local bank.
A Murblz expert will work out the exact tax burden for your situation - a business, a salary or a property purchase - during a free consultation.
Features of the Bermuda tax system
No income tax
Bermuda does not levy a classic personal income tax.
No excise or transfer tax
Neither of these taxes exists in Bermuda at all.
Relief for new residents
90 days without customs duty on personal and professional effects when you move.
Refund of contributions for expatriates
At 65 you can reclaim every contribution paid into the pension fund if no pension entitlement has arisen.
FAQ
Does a foreigner need a work permit in Bermuda?
How much is the social insurance contribution?
What is the customs duty rate in Bermuda?
Is there a tax on buying currency in Bermuda?
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