How to navigate Bermuda's tax system as an expat
Bermuda's tax system explained for expats: income tax rates, VAT, special regimes, and filing requirements. Data table below has the numbers.
Before you accept a job offer in Bermuda, you need to understand the local tax system. The numbers might surprise you.
Tax System Overview
| Tax Component | Rate / Details |
|---|---|
| Tax System Type | No_Income_Tax |
| Top Personal Income Tax Rate | Data not available |
| Effective Rate on €90,000 | Data not available |
| Net Monthly on €90,000 Gross | €6,900 |
| VAT (Standard Rate) | 0% |
| Special Expat Regime | Yes — other. No personal income tax. Payroll tax applies. |
Income Tax in Bermuda
Bermuda operates a No personal income tax income tax system. The top marginal rate is not publicly listed in our database.
What Does This Mean in Practice?
Effective tax rates vary based on income level, filing status, and available deductions.
For context, the average monthly salary in Bermuda is approximately €6,759.
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VAT (Value Added Tax)
The standard VAT rate in Bermuda is 0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:
- Basic food items and groceries
- Medical supplies and pharmaceuticals
- Books and educational materials
- Public transport (in some cases)
Special Tax Regimes for Expats
Yes — other. No personal income tax. Payroll tax applies.
If eligible, these regimes can provide substantial savings during your initial years in Bermuda. Always verify current requirements with a qualified tax professional, as rules change frequently.
Tax Filing Requirements
As a tax resident of Bermuda, you are generally required to:
- Register with tax authorities upon establishing residence
- Obtain a tax identification number
- File an annual tax return (deadlines vary)
- Declare worldwide income if you are a tax resident
- Report foreign bank accounts if applicable
Double Taxation
Bermuda has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Bermuda and your home country.
Tax Tips for Expats
- Hire a local tax adviser familiar with expat situations during your first year
- Keep records of all income, deductions, and tax payments from day one
- Understand residency rules: most countries consider you a tax resident after 183 days
- Check for exit tax: some countries impose tax on unrealised gains when you leave
- Social security contributions are often separate from income tax and can add 10-20% to your total burden
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Get Your Free VerdictFrequently Asked Questions
Are crypto earnings taxed in Bermuda?
Cryptocurrency taxation in Bermuda varies. Most countries treat crypto gains as capital gains or income depending on frequency of trading. Mining and staking rewards are typically taxable. Regulatory frameworks are evolving, so consult a specialist tax adviser.
What is the income tax rate in Bermuda?
Bermuda uses a No personal income tax tax system. The top personal income tax rate is not available. On a gross income of €90,000, the effective tax rate is approximately not available, leaving a net monthly income of approximately €6,900.
How does Bermuda's tax compare to other countries?
With an effective rate of N/A on €90k income and a top rate of N/A, Bermuda's tax burden is variable depending on income level. Compare with other countries using our assessment tool.
What social security contributions do expats pay in Bermuda?
Social security contributions in Bermuda are typically mandatory for employed residents and cover healthcare, pensions, and unemployment insurance. Combined employer-employee rates vary from 15-45% of gross salary depending on the country. These are separate from income tax.
How are investment gains taxed in Bermuda?
Capital gains tax in Bermuda varies by asset type and holding period. Short-term gains are often taxed at your marginal income tax rate, while long-term gains may benefit from reduced rates. Check local rules for shares, property, and cryptocurrency.