How corporate tax works in Bermuda
Bermuda does not levy a general corporate income tax on most companies. Ordinary trading, holding, consulting and investment companies generally pay 0% Bermuda corporate income tax on business profits. A separate 7% corporate-services tax can apply to revenue from specified services provided to exempted undertakings.
The main exception is the 15% corporate income tax for Bermuda businesses in multinational enterprise groups with annual revenue of EUR 750 million or more. The government has also enacted tax credits and continuing administrative rules for the new regime, so large groups should review elections, filing steps and accounting positions carefully.
Tax rates at a glance
- Corporate profits tax
- 0% (15% MNE CIT)Zero
- Standard company tax
- 0%
- In-scope MNE tax
- 15%
- Foreign company tax
- 0%
- Dividend withholding tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHolding companiesInvestorsRegional operatorsHigh earners
Watch out for
- Bermuda's zero-rate default does not remove payroll tax, social insurance, land tax, stamp duty, customs duty, health insurance or the separate corporate-services tax where it applies.
- Large multinational groups need to assess the 15% CIT, tax credits, elections, filing and accounting treatment even if they have historically treated Bermuda as a zero-tax jurisdiction.
- The government is still refining the regime through 2025 and 2026 administrative updates, so in-scope groups should watch for new guidance.
Frequently asked questions
Does Bermuda have corporate income tax?
Not generally. Most Bermuda companies still pay 0% corporate income tax, but in-scope MNE groups can be subject to a 15% CIT.
What businesses pay corporate tax in Bermuda?
Bermuda businesses in multinational enterprise groups with annual revenue of EUR 750 million or more are in scope for the 15% corporate income tax.
Is Bermuda good for companies?
It can be, especially for holding structures and international businesses that do not fall into the MNE regime. Companies still need to model payroll tax, social insurance, substance, banking, licensing and future rule changes.