Bermuda expat tax guide
Caribbean · how a foreigner who moves to Bermuda is taxed · 2026 · Very expat-friendly
If you move to Bermuda, you become a tax resident when residential Certificate / work permit / Economic Investment Certificate; no day-count tax residency. As a resident you are taxed on a territorial basis — Bermuda imposes no personal income tax on individuals, so a resident's worldwide income (foreign pensions, capital gains) is not taxed — though local employment income bears payroll tax. The top personal income tax rate is 0% (no personal income tax). A foreign pension is treated as: Not taxed (no income tax). Bermuda has no special expat or retiree tax regime, so movers are taxed under the ordinary rules. It lacks a US tax treaty and lacks a US totalization agreement. Overall it reads as very expat-friendly for an inbound mover. General information, not tax advice — verify with Bermuda's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Bermuda expat tax at a glance
| Question | Bermuda (2026) |
|---|---|
| When you become tax resident | Residential Certificate / work permit / Economic Investment Certificate; no day-count tax residency |
| Residency day-count trigger | No day count (facts-and-circumstances test) |
| How residents are taxed | Territorial — Bermuda imposes no personal income tax on individuals, so a resident's worldwide income (foreign pensions, capital gains) is not taxed — though local employment income bears payroll tax. |
| Top personal income tax rate | 0% (no personal income tax) |
| Foreign pension treatment | Not taxed (no income tax) |
| Foreign capital gains / dividends | Not taxed (no income tax, no capital gains tax) |
| Special expat / non-dom / retiree regime | None |
| US income tax treaty | No |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Bermuda, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Bermuda
The first thing that matters is tax residency: residential Certificate / work permit / Economic Investment Certificate; no day-count tax residency. Because Bermuda has no simple day count, residency turns on where your real home and life are, which is harder to plan around than a day rule.
Once resident, Bermuda largely leaves foreign income alone (territorial basis), which is why it appears on lists of friendly destinations for expats and remote workers. Crucially, Bermuda charges no personal income tax on individuals, so salaries, pensions and gains are not taxed locally.
Foreign pensions and investments
Foreign pension: Not taxed (no income tax). Foreign capital gains and dividends: Not taxed (no income tax, no capital gains tax). These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Bermuda taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
US citizens and social security in Bermuda
| Question | Bermuda |
|---|---|
| US income tax treaty? | No |
| US social-security totalization agreement? | No |
| Tax basis for residents | Territorial |
| Top personal income tax | 0% (no personal income tax) |
There is no US tax treaty with Bermuda, so US citizens rely on the Foreign Tax Credit (and the Foreign Earned Income Exclusion) under US domestic law to soften double taxation. With no totalization agreement, you can be exposed to social-security-type charges in both the US and Bermuda. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Bermuda
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Bermuda (this country) | Territorial | 0% (no personal income tax) | None |
| Monaco | Territorial | 0% (no personal income tax) | None |
| British Virgin Islands | Territorial | 0% (no personal income tax) | None |
| United Arab Emirates | Territorial | 0% (no personal income tax) | None |
| Qatar | Territorial | 0% (no personal income tax) | None |
| Saudi Arabia | Territorial | 0% (no personal income tax) | None |
Frequently asked questions
When do you become a tax resident of Bermuda?
Residential Certificate / work permit / Economic Investment Certificate; no day-count tax residency. There is no simple day count — residency turns on facts and circumstances such as your home and centre of life. Once resident, Bermuda taxes you on local-source income only (foreign income is generally outside scope). This is general information for 2026, not tax advice — verify with the official authority.
How does Bermuda tax a foreign pension?
Not taxed (no income tax). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
Does Bermuda have a special expat tax regime?
No. Bermuda has no dedicated expat, non-dom or retiree income-tax regime in our dataset — a mover is taxed under the ordinary rules (territorial basis, top rate 0% (no personal income tax)).
Is Bermuda good for US citizens or retirees?
Bermuda does not have a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Bermuda compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. No personal INCOME tax, but Bermuda DOES levy a payroll tax on employment plus weekly social-insurance contributions — so local salaried work is taxed even though there is no income tax; passive/foreign income is untaxed. No US income tax treaty; no totalization agreement. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Bermuda's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21