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 |
|
| 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.