| Updated | November 2026 |
| Income tax | none; payroll tax on salaries, employee share up to 12.5 per cent |
| Residence through investment | at least BD$2.5 million, held for five years, plus a BD$25,000 donation |
| Buying a home as a foreigner | licence required, minimum annual rental value $126,000, charge 12.5 per cent |
| Stamp duty | 2.1 to 7.35 per cent |
| Corporate income tax | 15 per cent for large international groups since 2025 |
| EU list | not listed |
The tax system: salaries, not income
Individuals in Bermuda pay no income tax. Instead the government levies a payroll tax on salaries, split between employer and employee. The employee's share is banded, from 0.25 per cent on the first $48,000 up to 12.5 per cent in the band from $500,001 to $1 million. Above $1 million of pay per person the tax stops. Employers with a large payroll pay 9.5 per cent.
Investment returns, foreign dividends and rental income sit outside payroll tax. Bermuda gets expensive elsewhere. Homeowners and long-term tenants pay land tax twice a year based on rental value, property transfers carry stamp duty from 2.1 per cent on the first $100,000 up to 7.35 per cent above $1.5 million, and buying foreign currency from a Bermuda bank costs a 1.25 per cent tax.
Since 1 January 2025 Bermuda has had a corporate income tax of 15 per cent, but only for international groups with revenue of at least €750 million. It is irrelevant to a newcomer's own company. Companies are formed under the Companies Act 1981 and trusts under the Trusts (Special Provisions) Act 1989.
Residence through investment: the Residential Certificate
The route for wealthy newcomers is the Economic Investment Residential Certificate, or EIRC; the current version has applied since September 2026. Invest at least BD$2.5 million in a qualifying investment, meet the other conditions, and you can be granted a Residential Certificate. It gives you the right to live in Bermuda indefinitely and to look for work there.
Bermuda real estate, residential or commercial, is one of the six qualifying investments. The investment is made up front and held for five calendar years. Each applicant also donates at least BD$25,000 to island charities. The holder and spouse must spend at least 90 days a year in Bermuda during the first five years.
The fees: $10,000 to the Bermuda Business Development Agency, which runs the programme, plus the government's application fee. The programme policy states it as $2,625 and the immigration department's fees page as $2,755; the amount on the day you apply is the one that counts. Permanent residence (a Permanent Resident's Certificate) is otherwise mostly reserved for people with very long residence, and anyone who works needs a work permit, which costs $1,015 for one year.
Property: licence, minimum value, charge
As a non-Bermudian you are a "restricted person" and need a licence to hold or buy land in Bermuda. You may only buy above a minimum annual rental value: $126,000 for houses and $25,800 for condominiums. The purchase carries a licence charge of 12.5 per cent of the value for houses and 8 per cent for condominiums, or 6 per cent for holders of permanent residence. In total, foreigners may hold no more than 2,500 acres of Bermuda under licence.
Licence charge and stamp duty together soon add up to a double-digit share of the purchase price, before a lawyer sends the first invoice. That belongs in any comparison of Bermuda with the Channel Islands.
The EU list and your home country
Bermuda is not on the EU list of non-cooperative jurisdictions for tax purposes, neither in Annex I nor in Annex II of the version of 9 October 2026.
A place with no income tax is still a low-tax territory in the eyes of most tax authorities in Europe. Your home country may keep a claim on you after you leave if your business and assets stay behind, may tax your company shares on emigration, and may tax the profits of a Bermuda company owned by its residents under its own rules. Check those points at home before you invest. How the EU list works is set out on our page on the EU list of tax havens.
Who Bermuda suits
People who work there in insurance or finance, and wealthy individuals who want the island as a home and do not mind the running costs. For pure tax planning there are cheaper places, such as the Cayman Islands, with a similar tax picture and different residence rules. If you only need an account, the essentials are in banking in Bermuda.
From twenty years of dealing with the British territories: Bermuda is highly professional and priced accordingly. It will gladly have you, if you can afford it.
Sources: Government of Bermuda: Types of taxes; Government of Bermuda: Calculating payroll tax 2026; Government of Bermuda: Stamp duty on legal transactions; Government of Bermuda: Corporate Income Tax; Government of Bermuda: EIRC Policy 2026 (PDF); Government of Bermuda: Economic Investment Certificate / Residential Certificate; Bermuda Laws: Minimum Annual Rental Values Regulations 2007; Bermuda Laws: Land-Holding Charges Regulations 2007; Council of the EU: conclusions of 9 October 2026 on the EU list