Long-term Expat Guide in Bermuda

Relocating to Bermuda involves navigating a specific set of immigration regulations, primarily managed by the Department of Immigration under the Ministry of National Security. Bermuda maintains strict controls over who can reside and work on the island.

Visa-Free Entry and Tourist Stay Limits

Many major passport holders, including citizens of the United States, United Kingdom, Canada, and EU member states, do not require a visa for tourist visits to Bermuda. Upon arrival, visitors are typically granted permission to stay for up to 90 days, provided they have a return or onward ticket, sufficient funds, and accommodation. Extensions may be possible but are not guaranteed and must be applied for through the Department of Immigration before the initial period expires.

Temporary Residency Tracks

Temporary residency in Bermuda is primarily linked to employment or specific long-term stay programs.

• Work Permits: The most common route for temporary residency. Foreigners must secure a job offer from a Bermuda-based employer. The employer then applies for a work permit on behalf of the prospective employee. Work permits are employer-specific and job-specific. They are typically issued for periods of 1 to 5 years, depending on the role and industry. The process is highly regulated to protect local employment.
• Student Visas: For individuals accepted into educational institutions in Bermuda. The institution typically sponsors the student's visa application. These are temporary and tied to the duration of study.
• Family Reunion/Dependent Visas: Spouses and dependent children of work permit holders can apply for a Dependent's Permit. This permit allows them to reside in Bermuda but does not automatically grant the right to work. A separate work permit would be required for dependents wishing to seek employment.
• Investment: While Bermuda does not have a direct 'investor visa' program leading to residency, significant investment in the Bermudian economy or property can be a factor considered in long-term residency applications, though it does not guarantee a path to permanent residency or citizenship.

Permanent Residency

Achieving permanent residency in Bermuda is exceptionally challenging and rare for most foreigners. The primary path is through the Grant of Bermudian Status, which is typically reserved for individuals with long-standing ties to the island, often through birth, marriage to a Bermudian, or extended periods of legal residency and employment (e.g., 20 years or more). The criteria are stringent and subject to legislative review. There is no straightforward 'points-based' system for permanent residency for new arrivals.

Citizenship

Bermudian citizenship is primarily acquired by birth, descent, or naturalization. Naturalization typically requires a significant period of permanent residency (e.g., 10 years or more) and meeting strict criteria, including good character, knowledge of Bermuda, and an intention to reside permanently. It is a lengthy and complex process, generally not a direct path for new expats.

Work Permits and Employment Authorisation

All non-Bermudians require a work permit to be employed in Bermuda. The employer initiates the application process with the Department of Immigration. The process involves demonstrating that no suitably qualified Bermudian, spouse of a Bermudian, or Permanent Resident Certificate holder is available for the position. There are different categories of work permits (e.g., Standard, Global Work Permit, Fintech Business Work Permit, Temporary Work Permit). The Global Work Permit allows an individual to work for a Bermuda-based company while residing outside Bermuda, provided their work does not impact the local job market. Fees vary significantly based on the permit type and duration, ranging from hundreds to several thousands of BMD (e.g., a Standard Work Permit can be BMD 1,000-20,000+ per year, approximately USD 1,000-20,000+ as of April 2026).

Digital Nomad or Remote Worker Visa Programmes

Bermuda offers the 'Work from Bermuda Certificate', which was introduced in 2020 and has been extended. This certificate allows eligible individuals to reside in Bermuda for up to one year while working remotely for an employer or clients outside Bermuda. It is specifically designed for digital nomads, remote workers, and students enrolled in overseas higher education. As of April 2026, the program remains active. Key requirements include:

• Being 18 years or older.
• Having valid health insurance.
• Demonstrating sufficient means to support oneself.
• Not seeking employment in Bermuda's local job market.
• A non-refundable application fee of BMD 263 (approx. USD 263). The application is made online through the Department of Immigration portal.

Student Visas

Foreign nationals wishing to study in Bermuda must obtain a student visa. This typically requires acceptance into a recognized Bermudian educational institution, proof of financial means, and health insurance. The institution usually assists with the application process.

Application Process, Documentation, Fees, and Timelines

• Where to Apply: Applications for work permits, dependent permits, and the Work from Bermuda Certificate are typically submitted online through the Department of Immigration's official portal (www.gov.bm/department/immigration). Visa-free visitors receive their entry stamp upon arrival.
• Documentation: Required documents vary by permit type but commonly include: valid passport, passport-sized photos, birth certificate, marriage certificate (if applicable), police certificate, medical examination results, job offer letter, educational qualifications, professional references, proof of financial means, and comprehensive health insurance.
• Fees: Fees are non-refundable and vary significantly. For example, a Work from Bermuda Certificate costs BMD 263. Work permit fees can range from BMD 1,000 to over BMD 20,000 annually, depending on the salary and duration. (Approx. USD 1 = BMD 1).
• Timelines: Processing times vary. Work from Bermuda Certificates can be processed relatively quickly (within a few weeks). Standard work permits can take several weeks to a few months, depending on the complexity and completeness of the application.

Renewal Procedures

Most temporary permits (work permits, dependent permits, Work from Bermuda Certificates) are renewable, provided the applicant continues to meet the eligibility criteria. Renewal applications should be submitted well in advance of the current permit's expiration date to avoid lapses in legal status.

Common Pitfalls and Refusal Reasons

• Incomplete Applications: Missing documents or incorrect information is a frequent cause of delays or refusals.
• Failure to Meet Criteria: Not genuinely qualifying for the specific permit category.
• Local Job Market Impact: For work permits, if a qualified Bermudian is available for the role, the permit will likely be refused.
• Criminal Record: A history of criminal offenses can lead to refusal.
• Overstaying: Remaining in Bermuda beyond the permitted period without authorization can result in fines, deportation, and future entry bans.
• Misrepresentation: Providing false information is a serious offense with severe consequences.

It is highly recommended to consult the official Government of Bermuda Department of Immigration website (www.gov.bm) or seek advice from a local immigration lawyer for specific circumstances, as policies can change.

Bermuda has a unique tax system, notably characterized by the absence of personal income tax, capital gains tax, and sales tax (VAT). This structure makes it an attractive jurisdiction for many, but foreigners must understand the taxes that do apply, primarily indirect taxes.

Tax Residency Rules

Bermuda does not have a formal concept of 'tax residency' in the same way countries with income tax do. Since there is no personal income tax, the duration of stay does not directly trigger income tax obligations. However, for other purposes (e.g., access to certain services, social security), an individual is generally considered a resident if they are ordinarily resident in Bermuda, typically meaning they have a work permit or other long-term permission to reside.

Income Tax Rates and Brackets

There is no personal income tax in Bermuda for residents or non-residents. This means individuals do not pay tax on their salaries, wages, or other personal income earned in Bermuda or elsewhere.

Double Taxation Treaties

Bermuda has a limited number of Double Taxation Agreements (DTAs), primarily focused on information exchange and mutual assistance in tax matters, rather than preventing double taxation on income (given Bermuda's lack of income tax). Bermuda has DTAs or Tax Information Exchange Agreements (TIEAs) with numerous countries, including the United States, United Kingdom, Canada, Australia, and various EU member states. These agreements are crucial for financial institutions and businesses but have less direct impact on individual expats due to the absence of personal income tax. Expats should be aware of their tax obligations in their home country, as many countries tax their citizens' worldwide income regardless of where it is earned.

Social Security and Pension Contributions for Foreigners

Foreigners working in Bermuda are generally required to contribute to the Contributory Pension Scheme (CPS). This is Bermuda's social security system. Contributions are mandatory for employees and employers. As of April 2026, the contribution rate is typically split between the employer and employee, with a maximum earnings ceiling. The employee's share is usually deducted directly from their salary. These contributions provide benefits such as retirement pensions, disability benefits, and survivor benefits. Expats should check if their home country has a social security agreement with Bermuda to avoid potential double contributions or to transfer benefits.

Tax Filing Requirements, Deadlines, and How to File

Given the absence of personal income tax, individual expats generally do not have annual personal income tax filing requirements in Bermuda. However, employers are responsible for filing and paying payroll tax on behalf of their employees. Individuals who own property will have land tax obligations.

Tax Deductions and Allowances Available to Expats

As there is no personal income tax, there are no personal income tax deductions or allowances for expats in Bermuda.

Property Ownership Tax for Foreigners

Foreigners can own property in Bermuda, but there are restrictions and significant costs. Property ownership is subject to Land Tax, which is levied by the government. The amount of land tax depends on the annual rental value (ARV) of the property and is paid semi-annually. Foreigners typically pay a higher rate of land tax compared to Bermudians. Additionally, foreigners purchasing property are subject to a substantial license fee (often a percentage of the purchase price, e.g., 6-8% or more, as of April 2026) to obtain permission to acquire property. This fee can be hundreds of thousands of BMD/USD.

Capital Gains Tax

Bermuda does not levy capital gains tax. This means profits from the sale of assets such as real estate, stocks, or other investments are not taxed.

VAT and Other Indirect Taxes Affecting Daily Life

Bermuda does not have a Value Added Tax (VAT) or general sales tax. However, several indirect taxes affect daily life and the cost of living:

• Customs Duties: Significant customs duties are imposed on almost all imported goods, which contributes to the high cost of living. Rates vary widely depending on the item, often ranging from 0% to 33.5% or more.
• Payroll Tax: This is the primary source of government revenue. Employers pay payroll tax based on their total payroll, which includes salaries, wages, and benefits. While paid by the employer, it is an indirect cost of employment.
• Hotel Occupancy Tax: Applied to hotel stays.
• Stamp Duty: Levied on various legal documents and transactions, including property transfers.
• Passenger Departure Tax: Paid by individuals departing Bermuda by air or sea.

Wealth or Net Worth Taxes

Bermuda does not impose wealth or net worth taxes.

When to Engage a Local Tax Advisor

While individual income tax is absent, engaging a local tax advisor is highly recommended for:

• Property Acquisition: Understanding the full costs, fees, and ongoing land tax obligations for foreign property owners.
• Business Owners/Self-Employed: Navigating payroll tax, business licensing, and other corporate tax obligations.
• Complex Financial Situations: Especially if you have significant assets or income streams in other jurisdictions, to ensure compliance with international tax laws and potential reporting requirements in your home country.
• Estate Planning: For individuals with substantial assets in Bermuda.

Penalties for Non-Compliance

Although individual income tax filing is not required, non-compliance with other tax obligations (e.g., land tax, customs duties) can result in significant penalties, fines, and interest charges. Employers face penalties for non-compliance with payroll tax and pension contributions. It is crucial to adhere to all applicable regulations.