Bermuda
0%
Corporate Tax
5โ10 business days
Setup Time
No minimum required (standard authorised capital of $12,000)
Min. Capital
Up to 100% for Exempt Companies
Foreign Ownership
Bermuda is the world's premier jurisdiction for insurance and reinsurance. If you are forming a captive insurance company, a commercial reinsurer, an ILS vehicle, or a catastrophe bond SPV, Bermuda is the default choice. The BMA is one of the most respected insurance regulators globally, with Solvency II equivalence from the EU and NAIC qualified jurisdiction status from the US. Outside insurance, Bermuda has carved a growing niche in digital assets and fintech through the Digital Asset Business Act 2018. For general holding structures or fund vehicles, the Cayman Islands or BVI typically offer lower costs and comparable tax neutrality. Bermuda earns its premium for insurance-related structures where the BMA's regulatory credibility is a competitive advantage.
- Insurance and reinsurance companies seeking a top-tier regulated domicile with Solvency II equivalence
- Captive insurance managers setting up single-parent, group, or rent-a-captive structures
- ILS fund managers and catastrophe bond sponsors requiring BMA-regulated SPVs
- Fintech and digital asset businesses seeking a regulated offshore environment under the DABA
- High-net-worth families and family offices with insurance-linked wealth structures
Bermuda is significantly more expensive than BVI or Seychelles for non-insurance structures. Payroll tax on local employees, higher professional fees, and the cost of living add up quickly. Unless you need BMA insurance regulation or the specific credibility Bermuda provides in the (re)insurance market, a Caribbean offshore jurisdiction will deliver similar tax neutrality at lower cost. Economic Substance requirements are actively enforced.
At a Glance
Available Business Structures
Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 4โ8 weeks
Banking in Bermuda is dominated by Butterfield Bank, HSBC Bermuda, and Clarien Bank. Account opening for Exempt Companies is possible but subject to rigorous KYC and due diligence, with minimum balance requirements often starting at $25,000โ100,000. Insurance and reinsurance companies have an easier path given Bermuda's specialisation in the sector. Non-insurance entities may find it more practical to bank through an operating subsidiary in a more accessible jurisdiction (US, UK, Singapore). Fintech entities regulated by the BMA under the Digital Asset Business Act have dedicated banking pathways.
Visa & Immigration
Bermuda offers the Work from Bermuda Certificate โ a one-year residency certificate allowing remote workers to live and work from Bermuda. Applicants must demonstrate employment or self-employment with an entity outside Bermuda and show proof of health insurance and income. There is no entrepreneur visa or golden visa tied to company formation. Standard work permits for Bermuda-based employment are managed by the Department of Immigration and are quota-controlled.
Common Mistakes
Choosing Bermuda for a general holding company when BVI or Cayman would suffice
Fix: Bermuda's premium cost is justified by BMA insurance regulation and the (re)insurance ecosystem. For a standard holding structure with no insurance nexus, BVI offers 0% tax and English common law at a fraction of the cost.
Underestimating payroll tax obligations for Bermuda-based staff
Fix: Bermuda has no income tax, but payroll tax on Bermuda-based employees is significant (up to 10.25%). If you plan to hire locally, factor this into your cost model. Exempt Companies with no local employees avoid this entirely.
Assuming banking will be straightforward for non-insurance entities
Fix: Bermuda banks are conservative and focused on the insurance sector. Non-insurance Exempt Companies may face lengthy onboarding or minimum balance requirements. Plan a banking strategy early โ consider banking in the US or UK if Bermuda banking proves impractical.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.