How dividend tax works in Bermuda
Bermuda does not generally impose dividend withholding tax. A Bermuda company can usually distribute dividends without deducting Bermuda WHT, and individuals are not taxed on dividends under a personal income tax regime.
The main caveat is payroll tax. Dividends paid to people providing services to local companies that are not listed can be taxed as gross remuneration. From 1 April 2026, the deductible amount increased to $20,000 per person per year, so dividends above that threshold can fall into payroll tax treatment.
Tax rates at a glance
- Dividend withholding tax
- 0%Zero
- Domestic dividend tax
- 0%
- Foreign dividend tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesRemote foundersHigh earnersFamily offices
Watch out for
- Foreign companies may still withhold tax before dividends reach Bermuda, depending on the source country and treaty paperwork.
- Dividends paid by a Bermuda company should be backed by proper board approvals and distributable reserves.
- If you are tax resident outside Bermuda, your home country may tax dividends even when Bermuda does not.
Frequently asked questions
Does Bermuda tax dividends?
No, not as ordinary investment income. Bermuda does not levy a personal income tax system that taxes normal dividends.
Does Bermuda have dividend withholding tax?
No. Bermuda generally does not levy withholding tax on ordinary dividends.
Are foreign dividends taxed in Bermuda?
No. Foreign dividends are not taxed as personal income in Bermuda, but source-country withholding tax and foreign residence tax can still apply.