Exit taxation on unrealised gains may apply
Timing and asset structuring should be planned 12–18 months in advance
Risk of establishing a place of effective management domestically (POEM)
If participation or control exceeds 50%, full taxation in the home country may apply
Tax non-recognition if there is insufficient economic substance
Effective solutions often include trusts, foundations, or multi-tier holding structures
Bermuda is a self-governing British Overseas Territory in the North Atlantic with around 63,000 inhabitants and a currency pegged 1:1 to the US dollar (BMD/USD). Its legal system is based on English common law, and Bermuda has been regarded for decades as an established international financial centre.
For tax purposes, Bermuda was traditionally known for 0% corporation tax, 0% withholding tax on dividends, 0% capital gains tax, and no VAT system. Since 2025, a 15% corporation tax applies to companies that are part of multinational groups with consolidated annual revenue of at least €750m, in line with the OECD Pillar Two rules. Most privately held holding structures and mid-sized groups are not affected.
Bermuda is a global leader in insurance and reinsurance and hosts many of the world’s largest risk carriers. The Bermuda Monetary Authority (BMA) enjoys a strong international reputation, particularly in financial services, insurance, digital assets, and FinTech.
Bermuda is not on the EU list of non-cooperative tax jurisdictions and is considered cooperative under international transparency standards. Regulatory alignment with global AML and compliance standards strengthens its reputation compared with less regulated offshore locations.
Bank accounts are possible via licensed banks. However, opening an account is compliance-intensive. Detailed KYC checks, evidence of source of funds, substance planning, and a clear business purpose are essential. With a clean structure, banking is achievable, but realistic timelines should be allowed for.
Important operational note: an “Exempted Company” is generally not permitted to conduct business in Bermuda’s local domestic market unless it holds the relevant licence. Bermuda is primarily designed for international business activities.
Contact us for an individual assessment and, where appropriate, more suitable alternative solutions.
Bermuda has no VAT or sales tax system, so a VAT number is not available.
Registration typically takes around 1–2 weeks, depending on the service provider and any regulatory approvals.
Incorporation is usually handled entirely remotely via Bermuda service providers. Opening the bank account is generally the most time-consuming step.
Bermuda is currently not on the EU list of non-cooperative tax jurisdictions.
Compared with major financial centres, the number of local banks is limited. However, there are established licensed banks and—depending on structure and substance—access to international banking solutions.
Generally not for an Exempted Company. However, a registered office in Bermuda via a licensed service provider is required.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
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from EUR 1,900 |
| Singapore | 0% |
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from EUR 2,950 |
| Hong Kong | 0% |
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from EUR 1,900 |
| Cyprus | 15% |
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from EUR 1,900 |
| Malta | 5% |
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from EUR 2,500 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income—sometimes even if profits are not distributed.
Depending on your personal situation, an appropriate holding structure may be required to comply with tax regulations and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be pleased to review your case and advise you accordingly.
