Capital gains tax in Bermuda

Does Bermuda have a capital gains tax?

No. Bermuda does not impose a capital gains tax on individuals or companies. Gains from the sale of shares, real estate, bonds, or any other asset are not subject to any Bermuda tax solely by reason of the gain. This has been Bermuda's position throughout its modern fiscal history and was explicitly confirmed by the Government of Bermuda's Office of the Tax Commissioner as recently as 2026.[1] There is also no personal income tax, no dividend tax, no wealth tax, and no VAT or sales tax in Bermuda. For individuals, the dominant direct levy is the payroll tax described below.

Note that Bermuda residents who hold citizenship in a country that taxes worldwide income -- most notably United States citizens and permanent residents -- remain subject to their home country's rules on foreign-source gains regardless of Bermuda's domestic position. A qualified tax professional can clarify how source-country and residence-country rules interact for your specific nationality and asset class.

What taxes do apply in Bermuda?

Bermuda funds its government through several indirect and sector-specific taxes rather than a broad income or capital gains regime.

Payroll Tax. This is the primary direct tax on employment income. It is split between employer and employee portions, both calculated on remuneration capped at BMD 1,000,000 (USD 1,000,000) per person per year. For the fiscal year April 2026 -- March 2027, employer rates range from 0% (government entities, new start-ups in their first four quarters) to 9.75% for exempted undertakings -- the international business category that includes most multinational captive insurers, holding companies, and investment funds. Large local employers with annual payroll above BMD 1,000,000 pay 9.50%. Employee rates are progressive: 0.25% on the first BMD 48,000 of annual remuneration, rising through four further bands to 12.50% on earnings between BMD 500,001 and BMD 1,000,000.[2] Self-employed individuals pay both portions. Payroll tax replaced what might elsewhere be called an employment income tax and is administered by the Office of the Tax Commissioner via the e-tax portal at etax.gov.bm.

Land Tax. Annual land tax is levied on the assessed Annual Rental Value (ARV) of developed land. Private dwellings use a graduated rate schedule from 0.80% on the lowest ARV band (up to BMD 11,000) to 55% on ARV above BMD 120,000. Commercial property is taxed at 9.50% of ARV (7.00% in designated Economic Empowerment Zones). Tourist properties face 8.90%. Senior homeowners aged 65 and over who occupy their own home may claim relief of up to BMD 1,791 annually, subject to an ARV ceiling of BMD 45,500.[3] Land tax is due twice yearly in March and September.

Stamp Duty on Conveyances and Estates. Sales of Bermuda real estate attract stamp duty on a sliding scale: 2.10% on the first BMD 100,000 of value, 3.15% on the next BMD 400,000, 4.20% on the next BMD 500,000, 6.30% on the next BMD 500,000, and 7.35% on any value above BMD 1,500,000.[4] Property inherited through an estate is subject to a separate death-duty schedule: nil on the first BMD 100,000, 5.25% on the next BMD 100,000, 10.50% on the next BMD 800,000, 15.75% on the next BMD 1,000,000, and 21.00% thereafter. Spouses inheriting a primary family homestead are exempt. A first-time Bermudian buyer purchasing a home valued at BMD 750,000 or less may claim relief of up to BMD 24,000 in stamp duty.

Customs Duty. Most goods imported into Bermuda attract customs duty. The most common rate is approximately 25%, though rates vary by commodity category.[5] Customs duty is a significant revenue source given Bermuda's near-total import dependence.

What is the 2025 Corporate Income Tax and who does it affect?

The Bermuda Corporate Income Tax Act 2023 introduced a 15% Corporate Income Tax (CIT) effective 1 January 2025. This is a major structural change, enacted specifically to satisfy Bermuda's commitment to the OECD Global Minimum Tax initiative (Pillar Two of the BEPS framework). However, the tax is narrowly scoped.

The CIT applies only to Bermuda entities that are constituent parts of a Multinational Enterprise (MNE) Group whose consolidated annual revenue equals or exceeds EUR 750 million in at least two of the four preceding fiscal years.[6] Domestic Bermuda businesses, individuals, smaller companies, and MNE groups below the revenue threshold are not in scope and continue to operate under the traditional zero-direct-tax framework.

For in-scope entities, taxable income is computed from financial accounting (book) income with adjustments, broadly following the OECD GloBE Model Rules. An Economic Transition Adjustment (ETA) allows eligible Bermuda entities to step up asset values to fair market value as of the transition date, providing relief on pre-2025 accrued gains. An International Shipping Income Exclusion applies to qualifying shipping operations. Advance payments (covering 45% of expected liability) are due in the 8th and 12th months of each fiscal year, with a balancing payment on filing. First returns are due within 12 months of fiscal year-end, with initial CIT registration required by 31 December 2025.[7]

The CIT does not alter Bermuda's no-CGT position for out-of-scope entities. Capital gains of in-scope MNE group members will be captured within their book-income base to the extent gains are recognized in the financial statements, consistent with GloBE accounting treatment.

Does Bermuda tax residents on foreign capital gains?

Bermuda does not operate a worldwide residency-based tax on individuals. There is no mechanism in Bermuda domestic law by which a Bermuda resident would owe Bermuda tax on gains realized outside Bermuda -- whether on foreign shares, foreign property, or any other foreign asset. The absence of a personal income tax makes such worldwide taxation structurally impossible under current law.[1]

For corporate entities outside the CIT scope, the same principle applies: Bermuda imposes no tax on offshore profits or gains. For in-scope MNE group members, the 15% CIT reaches Bermuda-computed book income, which may include recognized foreign gains depending on the entity's financial statements and applicable GloBE adjustments.

Residents who are tax-resident in another jurisdiction or who hold citizenship in a worldwide-taxation country (such as the United States) must independently comply with that country's rules. The Bermuda country overview provides additional context on residency and domicile questions.

How do Bermuda tax rules compare across main categories?

The table and chart above reflect law as of June 2026. Tax rules change. Engage a qualified tax professional before making decisions based on this summary. The Bermuda country overview links to vetted Bermuda-licensed practitioners who can advise on your specific circumstances.