How inheritance tax works in Bermuda
Bermuda does not levy a standalone inheritance or gift tax. However, the Stamp Duties Act charges stamp duty on a deceased person’s net Bermuda estate above the applicable exemptions, so a death can still produce a material Bermuda tax bill.
For deaths on or after 1 April 2010, the first BMD 100,000 is exempt; the next BMD 100,000 is charged at 5%, the following BMD 800,000 at 10%, the next BMD 1 million at 15%, and the balance at 20%. Benefits to a surviving spouse and a designated primary family homestead can qualify for relief. Gifts of Bermuda real property and shares in private Bermuda companies can also trigger stamp duty.
Tax rates at a glance
- Inheritance tax
- 0%Zero
- Estate tax
- 0% - 20%Check stamp duty
- Gift tax
- 0%
- Estate stamp duty
- 0% - 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsFamily officesHigh earnersExpatsRemote founders
Watch out for
- No standalone inheritance tax does not remove the need for a will, especially for expats with Bermuda bank accounts, property or company shares.
- Estate stamp duty can apply to the net Bermuda estate at progressive rates up to 20%, although spousal and primary-family-homestead relief may be available.
- Foreign heirs may still face reporting or tax obligations in their own country.
Frequently asked questions
Does Bermuda have inheritance tax?
Bermuda has no separately named inheritance tax, but stamp duty can apply to a deceased person’s net Bermuda estate. For deaths on or after 1 April 2010, the progressive rate reaches 20% above the stated bands and exemptions.
Does Bermuda tax estates?
Yes, through estate stamp duty. The first BMD 100,000 is exempt, then progressive rates of 5%, 10%, 15% and 20% can apply to the net Bermuda estate, subject to deductions and exemptions.
Do expats need succession planning in Bermuda?
Yes. Expats should still have a will and an asset map for Bermuda property, bank accounts and company interests.