Tax on property income in Bermuda
Taxation Researcher | March 17, 2023
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 4.5% | 4.5% | 4.5% |
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
There are no income taxes in Bermuda but certain transactions are subject to stamp duties and fees.
RENTAL INCOME
The owner of a vacation rental property must pay 4.5% tax on the advertised nightly rate of their property.
CAPITAL GAINS
There is no capital gains tax in Bermuda.
STAMP DUTY
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$1,500,000 | 7% |
PROPERTY TAX
Property Tax
Land tax is assessed on the annual rental value (ARV) of the property. Property owners are expected to pay this tax twice a year. The rates for residential units are:
PROPERTY TAX |
|
| ANNUAL RENTAL VALUE, US$ | TAX RATE |
| Up - US$11,000 | 0.80% |
| US$11,001 - US$22,000 | 1.80% |
| US$22,001 - US$33,000 | 3.50% |
| US$33,001 - S$44,000 | 6.50% |
| US$44,001 - US$90,000 | 17.00% |
| US$90,001 - S$120,000 | 30.00% |
| Over US$120,001 | 50.00% |
The rate for commercial properties is a fixed 9.5% of the annual rental value (ARV) as of 01 July 2019. Tourist properties are taxed at 8% ARV