Living in Bermuda: The Expat Guide for 2026

Bermuda occupies a singular position in the world of offshore finance and Atlantic lifestyle. A British Overseas Territory located in the western North Atlantic, 1,070 kilometres due east of North Carolina, Bermuda has built the world's most sophisticated insurance and reinsurance market, a substantial legal and financial services sector, and a reputation as one of the most expensive but also most refined places to live in the English-speaking world. The island is home to some of the world's wealthiest individuals — captains of the insurance industry, hedge fund managers, and old-money families who have called Bermuda home for generations.

For the HNW individual, the core proposition is straightforward: no income tax, no capital gains tax, no withholding tax, no estate or inheritance tax, and no sales tax (though a Payroll Tax applies to employers — for 2026/27 a maximum employer rate of around 9.75–10% — and an import duty of 22% on most goods contributes to the cost base). The resulting cost of living is among the highest in the world — higher than Cayman in many respects — but the professional and lifestyle infrastructure is matched by very few comparable jurisdictions.

The Tax Framework

Bermuda's tax-free status is its defining financial characteristic. There is:

• No personal income tax
• No corporate income tax (as of 2025, a 15% corporate tax applies to large multinationals with revenues above USD 750 million under the OECD Pillar Two framework, but this does not affect individual residents or smaller businesses)
• No capital gains tax
• No inheritance, estate, or gift tax
• No withholding taxes on dividends, interest, or royalties

Government revenue comes primarily from payroll tax (paid by employers), customs/import duties (typically 22–25% on most goods), stamp duties, and various licensing fees.

For UK-origin individuals, the same caveat applies as for all Caribbean/Atlantic low-tax jurisdictions: establishing Bermudian tax residency does not automatically resolve UK tax obligations. The UK Statutory Residence Test, UK domicile rules, and the treatment of UK-source income require specialist analysis before relocation. UK inheritance tax exposure on worldwide assets continues for UK-domiciled individuals regardless of residency location.

Bermuda has not historically maintained a public double taxation treaty network with other countries (unlike Cayman, which has Tax Information Exchange Agreements). This is a nuanced point that specialist advisers will navigate in the context of each individual's circumstances.

Residency: A Significant Challenge

Bermuda's most significant drawback as a zero-tax base is the difficulty of obtaining long-term residency rights for most internationally mobile individuals. Bermuda operates some of the most restrictive immigration policies of any major offshore jurisdiction, rooted in protecting Bermudian citizens' right to housing and employment on their 53-square-kilometre island.

The main pathways are:

Annual Employment Permit: Most expats arrive through employer sponsorship — working for a Bermudian company with a work permit issued by the Department of Immigration. The permit is employer-linked, not portable. Most permits are for one to five years.

Permanent Resident's Certificate (PRC): Available to those who have resided legally in Bermuda for at least five years (on a work permit basis). Provides the right to reside indefinitely but not the right to vote or work without a permit. PRCs are valuable and not easily obtained.

High Net Worth Residency (Economic Investment Programme): Bermuda has introduced a residency certificate for high-net-worth individuals who invest in a qualifying Bermuda property. The property value threshold is USD 2.5 million for a five-year renewable residential certificate. This route is the most accessible for internationally mobile HNW individuals without local employment ties.

Global Citizen Certificate: Bermuda launched this in 2020 for remote workers — an initial one-year certificate renewable for up to a second year, for those working remotely for non-Bermudian employers. Not a permanent solution but allows extended stays.

The practical reality is that long-term residency without employment or substantial property investment is extremely difficult. Bermuda's small land area and the political commitment to protecting Bermudian housing availability mean that the government has historically applied a restrictive approach to granting open-ended residency rights to foreigners.

Hamilton and the Island

Hamilton is the capital and commercial centre — a compact city of about 1,500 people (the island's total population is around 64,000). The harbour is beautiful; Front Street along the waterfront houses most of the retail, banking, and dining. The island's famous pastel-coloured houses — white roofs designed to collect rainwater (Bermuda's only fresh water source), pink sand beaches, and turquoise ocean — give it a visual character unlike anywhere else in the Atlantic.

The main residential areas for the expat community are Paget, Devonshire, Pembroke, and Sandys Parish. The island's small size means no location is more than 30–40 minutes from anywhere else by scooter or bus.

Transport is distinctive: private car ownership is limited to one car per household (a long-standing policy to manage congestion), and the standard mode of transport is the 50cc moped — iconic, efficient on the island's narrow roads, and occasionally hazardous in wet conditions. Taxis and buses serve the island.

Property Market

Bermuda operates the most restrictive foreign property market of any major offshore jurisdiction. Non-residents and newly-arrived expats may only purchase property with an assessed annual rental value (ARV) above certain thresholds — currently, foreigners may acquire properties with an ARV above approximately BMD 177,000 per year, equating to purchase prices well above USD 5,000,000 for most properties. This restriction dramatically limits the addressable market for foreign buyers.

Property prices for qualifying properties are extraordinary even by Caribbean standards — a four-bedroom house in a desirable area costs USD 3,000,000–10,000,000 or more. Land is scarce and construction is expensive. The restriction to high-ARV properties means that the Bermuda property market for foreign buyers is emphatically a premium-tier experience.

For those who do qualify and invest, property generally holds its value well — supply is permanently constrained and demand from the financial services community is persistent.

Insurance and Reinsurance: The Business Foundation

Bermuda's position as a global insurance hub is the commercial engine of the economy. Members of the Association of Bermuda Insurers and Reinsurers (ABIR) include the world's largest reinsurers — PartnerRe, RenaissanceRe, Aspen, AXIS Capital, and scores of others. Lloyd's of London has a significant Bermudian presence. This sector employs a large proportion of the expat professional community and is the primary vehicle through which most business-basis expats arrive.

For those with business interests in the insurance, reinsurance, ILS (insurance-linked securities), or related financial services sectors, Bermuda provides unique proximity to the most concentrated group of specialist expertise and decision-makers in the world.

Healthcare

King Edward VII Memorial Hospital is the main hospital and provides a reasonable standard of care for a jurisdiction of Bermuda's size. For complex procedures, Boston, Miami, and New York are the standard referral destinations — typically 2–3 hours by flight. Medical evacuation insurance is important. Private healthcare provision supplements the main hospital.

Education

The Bermuda Institute, Saltus Grammar School, and Warwick Academy are among the main private school options. The international school community is small but well-resourced, and educational standards are generally high. For larger families requiring a broader range of schooling options, the limited size of the available sector is a consideration.

Lifestyle

Bermuda's lifestyle dividend is genuine. The pink sand beaches — coloured by crushed coral and shells — are among the most beautiful in the Atlantic. Golf courses (the Mid Ocean Club, Port Royal), sailing, deep-sea fishing, and diving are world-class. The social scene in Hamilton — centred on the Royal Bermuda Yacht Club, various private clubs, and a circuit of restaurant openings — is intimate, international, and genuinely sophisticated.

The island's small size creates a closeness of community that some residents cherish and others find claustrophobic. Everyone in the professional world knows everyone else within a short time.

How Global Investments Can Help

Bermuda is the right base for a specific and limited profile: high-earning professionals in the insurance, reinsurance, and related financial services sectors who arrive via employer sponsorship, or extraordinarily wealthy individuals who can meet the USD 2.5 million property investment threshold and are genuinely drawn by the island lifestyle.

For those in this category, the combination of zero income tax, world-class professional sector, and Atlantic lifestyle justifies the extraordinary cost of living. For others, alternative zero-tax jurisdictions with more accessible residency — the Cayman Islands, the Bahamas, or UAE — may offer a more practical route to comparable tax outcomes.

Global Investments works with clients evaluating Bermuda within a broader Atlantic or Caribbean residency strategy and can provide introductions to specialist Bermudian immigration and property advisers.

Contact our international mobility team to discuss whether Bermuda belongs in your strategy.

This guide is for informational purposes only and does not constitute legal, tax, or financial advice. Tax rules, residency tests, and regulatory requirements change frequently. The value of investments may fall as well as rise. Always seek independent professional advice before making relocation or investment decisions.