Bermuda has a very expensive cost of living, with a Cost of Living Index of 131.0 (NYC = 100). Groceries are particularly high (index: 143.2) and restaurant prices are also elevated (index: 134.0).

The housing market in Bermuda is moderate, with a property price to income ratio of 8.5 years. The Rent Index is 102.1, indicating high rental costs compared to NYC. Land tax is progressive and based on annual rental value.

The purchasing power index of 121.2 (NYC = 100) indicates excellent buying power for residents. Employment has shown consistent growth, and income levels have strengthened in recent years.

Bermuda has no personal income tax, capital gains tax, or wealth tax, making it highly attractive for individuals. Revenue is primarily generated through payroll taxes, customs duties (common rate 25%), and a progressive annual land tax. A 15% corporate income tax for large multinational enterprises will be effective from January 2025.

Bermuda is a well-established offshore financial center and a leading domicile for insurance and reinsurance. The international business sector is a key economic pillar with consistent growth in new company registrations. The Bermuda Monetary Authority provides a stable and mature regulatory environment, actively promoting fintech initiatives.

Bermuda offers a social insurance system including a mandatory occupational pension scheme. The Contributory Pension Fund is regularly reviewed for sustainability, with annual increases to reflect the cost of living. Universal medical benefits are provided for residents up to age 18 (or 21 if a student) and those aged 65 or older. Financial assistance programs, including a Short-Term Relief Benefit, are also available.

Deposits in Bermuda are protected up to BD$25,000 (approximately USD 25,000) per insured depositor per bank under the mandatory Deposit Insurance Scheme operated by the Bermuda Deposit Insurance Corporation (BDIC). The banking sector is resilient, with no significant bank failures since 2008, and is regulated by the Bermuda Monetary Authority (BMA) which ensures compliance with Basel III standards.