Bermuda Bank Account
Bermuda enjoys one of the highest per capita incomes in the world, nearly equal to that of the US. Its economy is primarily based on providing financial services for international business and luxury facilities for tourists. An offshore Exempt Company is available here.
Bermuda Residence and Liability for Taxation
The Bermudan payroll tax and social contributions apply to persons 'employed in Bermuda'. For a non-Bermudian this is equivalent to 'having a work permit' since it is illegal to work in Bermuda without one. Other Bermudan taxes or duties are related to events, rather than residence status.
Land Tax: An owner of property (or a lessee if the lease is for more than 3 years) is charged tax according to the ARV (Annual Rental Value, which is a notional figure, or the actual rent, whichever is the higher). The rates are low, but vary.
Stamp Duty: until recently there was a duty on Bermudan assets on the grant of probate after death (excluding shares in an exempt company) at 5% on value between BMD20,000 and BMD100,000, and 10% thereafter.
The estate tax and stamp duty system came under review in 2005 when the government put forward a proposal to establish protection from estate tax on family homes. This review resulted in the passing of the Stamp Duties Amendment Act 2005, announced during the 2006/7 budget, which exempts the Primary Family Homestead from Stamp Duty that would otherwise be payable upon the death of an owner.
It provides that an owner can designate a property for this exemption. In particular, it also allows an owner of more than one property to choose which one should benefit from the exemption. It does not affect the existing exemption from Stamp Duty on assets passing to a surviving spouse.
In 2008, first-time buyers were given exemption from stamp duty on the purchase of properties up to a value of USD750,000.
Stamp duty is also imposed on a large number of legal instruments, and on the converyance or transfer on sale of land at rates of between 2.5% and 6% (2007).
Betting Tax: 20%
Departure Tax: $20-$25 on every departure from Bermuda.
Hotel Tax: 7.25% on revenue received from hotels and other forms of accommodation.
Find out how to open a Bermuda Bank Account