Form a Bermuda company
Bermuda tax guide 2026

Bermuda tax for companies: 0%, and who the 15% reaches

Updated 10 November 2026CIT Act 2023 as amendedAbout 10 minutes to read
The short answer

A Bermuda exempted company pays no tax on profit, gains or dividends, and Bermuda withholds nothing when it pays you.

The 15% Corporate Income Tax from 2025 reaches only multinational groups with EUR 750 million of revenue. Your own country may still tax what you take out.

Am I in the 15%? Do I need substance?
Exempted company EUR 750m group revenue before Bermuda's 15% Corporate Income Tax applies Below that, an exempted company pays no tax on profit, gains or dividends, and nothing is withheld.

Since 2025 Bermuda has a 15% Corporate Income Tax, and many pages now say Bermuda taxes companies. It does, but only Bermuda entities of very large multinational groups. Here's where the line sits, what the 2035 assurance covers, and the taxes a small company can still meet, from the Acts on bermudalaws.bm and the Tax Commissioner.

Key takeaways

  • An exempted company pays no tax on profit, gains or dividends, and nothing is withheld on payments out.
  • The 15% CIT reaches groups with EUR 750 million of revenue in two of the last four years.
  • Each January the company declares whether it belongs to such a group.
  • The tax assurance to 2035 is optional, costs US$195 and doesn't cover the CIT.
  • Substance applies to nine listed activities; consulting and online sales aren't among them.
  • Payroll tax is due only on pay for work done in Bermuda.
Chapter 1

Bermuda corporate income tax: are you in scope?

US$250,000 profit, owned by youExempted
Tax on profitUS$0
15% Corporate Income TaxNot in scope
Withheld on dividends to youUS$0
Payroll tax, no staff in BermudaUS$0
Your own country may tax what you take out. Where you live: pick it

Type the consolidated revenue of the group your company belongs to, for each of the last four years. For a company you own alone, that's usually just its own revenue.

EUR m
EUR m
EUR m
EUR m

The test comes from sections 4, 7 and 11 of the Corporate Income Tax Act 2023, for fiscal years from 1 January 2025.

1
Key takeaway

Two years out of four above EUR 750 million, or you're outside it.

Chapter 2

Bermuda's 15% tax for large groups

15%On the Bermuda profit of in-scope groups, from fiscal years starting 1 January 2025
10 monthsAfter the year end, the return is due; 2 November 2026 for 2025
CIT AgencyRuns the tax, separate from the Bermuda Monetary Authority
Not publicEach company's declared status, shared only with the Agency

It's a domestic corporate tax, not just a top-up, and the Tax Credits Act 2025 lets in-scope groups earn credits against it.

2
Key takeaway

A real corporate tax, built for the largest groups.

Chapter 3

Bermuda tax assurance certificate: what it covers

What the assurance does
  • Promises no new tax on profit, income or gains for the company until 31 March 2035
  • Issued on application, for a US$195 government fee; we apply for it with every Bermuda company, at cost
  • Protects a small company against a future profit tax
What it doesn't
  • The 15% CIT, which applies regardless of any assurance
  • Payroll tax on work done in Bermuda
  • Tax on owners who live in Bermuda
3
Key takeaway

The 2035 assurance is optional, costs US$195 and doesn't cover the 15%.

Chapter 4

Bermuda economic substance: who it applies to

The company's main activity
Tax resident in another country

The listed activities come from sections 2, 3, 5 and 5A of the Economic Substance Act 2018, as amended in 2026. Enforcement moved to the CIT Agency on 31 March 2026.

4
Key takeaway

Nine listed activities. With none, you answer no in January.

Chapter 5

Bermuda payroll tax rates from April 2026

A company with nobody working in Bermuda pays none. If you hire there or move there, work it out.

US$

The rates come from sections 3 and 3A of the Payroll Tax Rates Act 1995 for 1 April 2026 to 31 March 2027, as the Tax Commissioner sets them out: 9.75% employer rate for exempted companies; employee bands of 0.25%, 7.75%, 10.75%, 11.5% and 12.5% up to US$1 million. Returns are quarterly.

5
Key takeaway

Bermuda's main tax is on pay for work done in Bermuda.

Chapter 6

Bermuda company tax at home

Bermuda has no general tax treaties, only information exchange agreements. So tax withheld abroad on payments into the company stays lost, and your own country decides how the profit is taxed: as dividends, under its controlled company rules, or by treating a company managed from there as resident.

6
Key takeaway

No general tax treaties. Your home country decides what you keep.

Chapter 7

Bermuda taxes a small company can still meet

7%Corporate services tax on the local provider's fees; inside our price
No VATNo sales tax or GST either; the 2018 proposal was never enacted
About 25%Customs duty on most goods brought onto the island
If anyStamp duty and land tax, only with Bermuda property or documents
7
Key takeaway

No VAT. A 7% services tax, customs, stamp duty and land tax.

Chapter 8

Is Bermuda a tax haven?

  1. March to 17 May 2019EU blacklistOver its first substance law.
  2. May 2019 to 18 February 2020EU watch listUntil the commitments were met.
  3. 1 January 202515% tax for large groupsBermuda's answer to the global minimum tax.
  4. 9 October 2026On neither EU listOff the FATF lists too; the OECD rates it largely compliant.
8
Key takeaway

On the EU blacklist for two months in 2019, on neither list since 2020.

Chapter 9

Bermuda tax questions, answered

?!
Does Bermuda have corporate tax?
Only for Bermuda entities of multinational groups with EUR 750 million of revenue in two of the last four years, at 15% from 2025. Other companies pay none.
Does a Bermuda exempted company pay tax?
No tax on profit, gains or dividends, and no withholding on payments out. Payroll tax applies only to pay for work in Bermuda.
What is the Bermuda tax assurance certificate?
An optional promise of no new profit tax until 31 March 2035, issued for a US$195 fee. It does not cover the 15% CIT. We apply for it with every company we form, at cost.
Does a Bermuda company need economic substance?
Only for nine listed activities such as holding, IP, financing or insurance. Without one, the January declaration simply says no.
What is the Bermuda payroll tax rate?
From April 2026, 9.75% for exempted company employers, plus an employee portion from 0.25% to 12.5% by band.
Is Bermuda on the EU blacklist?
No. It was listed from March to May 2019 and has been on neither EU list since 18 February 2020. For what banks ask a Bermuda company, see our Bermuda bank account guide.
Do you handle the January declaration?
Yes. Our Bermuda company includes the annual declaration and the local team every year.

Every January deadline, the fee by capital band and what a late payment leads to: Bermuda annual fees and filings.

Changelog

  • 10 November 2026: first published.
  • 13 November 2026: official sources linked in the text.
Your Bermuda company

A Bermuda company with the January declaration filed for you.

US$4,490 a year after the first, the local team and annual fee included.

See the Bermuda company Compare tax havens