Bermuda Tax Overview

Bermuda tax system at a glance

Bermuda is a British Overseas Territory with no personal income tax, no corporate income tax on most companies, no capital gains tax and no VAT/sales tax. Government revenue comes primarily from payroll tax, customs import duties, and various fees. A new 15% corporate income tax applies only to large multinational enterprise (MNE) groups for tax years beginning on or after 1 January 2025.

• Currency — Bermudian dollar (BMD), pegged 1:1 to the US dollar (USD) (Government of Bermuda — official currency)
• Personal income tax — None — Bermuda does not impose income tax on individuals (PwC Worldwide Tax Summaries — Bermuda, Individual taxes on personal income)
• Corporate income tax (general) — None for most companies; a 15% CIT applies only to in-scope MNE constituent entities (Corporate Income Tax Act 2023)
• Headline corporate income tax rate (in-scope MNEs) — 15% percent (Corporate Income Tax Act 2023)
• VAT / GST / sales tax — None — Bermuda has no value-added tax, goods and services tax, or general sales tax (PwC Worldwide Tax Summaries — Bermuda, Other taxes)
• Capital gains tax — None (PwC Worldwide Tax Summaries — Bermuda, Overview)
• Primary government revenue sources — Payroll tax, customs import duties, land tax, stamp duty, and government fees (PwC Worldwide Tax Summaries — Bermuda, Overview)
• Payroll tax year — 1 April to 31 March (Payroll Tax Act 1995)
• Residence / taxation basis — No income-based residence test for individuals (no income tax); payroll tax is levied on remuneration for work performed in Bermuda regardless of residence (Payroll Tax Act 1995)
• Withholding taxes on dividends, interest, royalties — None (PwC Worldwide Tax Summaries — Bermuda, Corporate withholding taxes)
• Common customs import duty rate — 25% (most common rate; other rates apply by good) percent ((approx — confirm by tariff line)) (Customs Tariff Act 1970)