Income tax in Bermuda

Taxation Researcher | August 10, 2021

INDIVIDUAL TAXATION

There are no income taxes in Bermuda but certain transactions are subject to stamp duties and fees.

RENTAL INCOME
Leasing properties in Bermuda is subject to stamp duties, which depends on the monthly rent.

STAMP DUTY FOR
LEASE AGREEMENTS

MONTHLY RENT, US$ STAMP DUTY
Up to US$1,200 US$75
US$1,200 - US$1,500 US$100
US$1,500 - US$2,500 US$150
US$2,500 - US$3,500 US$200
US$3,500 - US$5,000 US$300
Over US$5,000 US$400

CAPITAL GAINS
There is no capital gains tax in Bermuda.

Stamp duties are payable when Bermudan properties are transferred or conveyed. The duty rate is levied on the property value at progressive rates.

STAMP DUTY FOR PROPERTY CONVEYANCE AND TRANSFER

PROPERTY VALUE, US$ STAMP DUTY
Up to US$100,000 2%
US$100,000 - US$500,000 3%
US$500,000 - US$1,000,000 4%
US$1,000,000 - US$1,500,000 6%
Over US$1,500,000 7%

PROPERTY TAX


Property Tax

Land tax is assessed on the annual rental value (ARV) of the property. Property owners are expected to pay this tax twice a year. The rates for residential units are:

PROPERTY TAX 01 JULY 2019 - 2021

ANNUAL RENTAL VALUE, US$ TAX RATE
Up to US$11,000 0.80%
US$11,000 – US$22,000 1.80%
US$22,000 – US$33,000 3.50%
US$33,000 – US$44,000 6.50%
US$44,000 – US$90,000 12%
US$90,000 – US$120,000 25%
Over US$120,000 47%

PROPERTY TAX

ANNUAL RENTAL VALUE, US$ TAX RATE
Up - US$11,000 0.60%
US$11,001 - US$22,000 1.20%
US$22,001 - US$33,000 2.40%
US$33,001 - S$44,000 4.80%
US$44,001 - US$110,000 9.60%
Over US$110,000 18.23%

The rate for commercial properties is a fixed 12% of the annual rental value (ARV) as of 01 July 2019. The rate for commercial properties is a fixed 12% of the annual rental value (ARV) for tax periods 01 July 2018 to 31 December 2018 and 01 January 2019 to 30 June 2019.

    

Comments

Merianna | April 03, 2010

Yes, no "income" tax - but there is a payroll tax

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