๐ง๐ฒ Annual Compliance โ Bermuda
Ongoing requirements and costs for maintaining your Bermuda company in good standing.
Annual Costs
Key Compliance Requirements
Exempt Company (EC)
- Annual cost: $1,995 โ $5,000/year (government fee + registered office)
- Required documents: 7 items
Common Compliance 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.
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.