Bermuda residency & tax 2026: how to apply, cost & timeline

How residency in Bermuda works

Residency is administered by the Department of Immigration, which enforces the Bermuda Immigration and Protection Act 1956 and its related policies. Bermuda has no ordinary route to permanent settlement for economic migrants, so most foreigners live there on a work permit tied to an employer, on renewable annual permission to reside, or through investment. The higher-value Economic Investment Certificate and Residential Certificate programmes are marketed with concierge support from the Bermuda Business Development Agency (BDA), but the certificates themselves are issued by government. Rules are policy-driven and change often, so verify current requirements before committing.

Routes to residency

The flagship investor route is the Economic Investment Residential Certificate (EIRC), which grants a Residential Certificate to an applicant, spouse and eligible dependents in exchange for a qualifying investment of roughly BMD 2.5 million in property, government bonds, a local business, charity or other approved ventures. Financially independent people without local employment may apply for Permission to Reside on an Annual Basis, renewable and obtainable for up to five years, provided they can show substantial means. Most working foreigners instead hold an employer-sponsored work permit. The former one-year Residential Certificate for remote workers closed to new applicants in early 2025.

How to apply, step by step

1. Confirm which route fits: investor certificate, annual permission to reside, or employer work permit — and check the current published policy.
2. Gather supporting documents, including proof of funds or the qualifying investment, and have foreign papers apostilled where required.
3. Register an Expression of Interest with the BDA if pursuing the investment route, or prepare the relevant Immigration application.
4. Submit the application to the Department of Immigration with the applicable processing and application fees.
5. Complete due-diligence and background checks and respond to any requests for further information.
6. Receive the Residential Certificate or annual permission once approved, then relocate.
7. Renew annual permissions before expiry (typically at least three months ahead) or maintain the qualifying investment for the certificate.
8. Consider a Permanent Resident's Certificate or naturalisation only where you separately qualify, as these are limited and not guaranteed.

What you'll need

• Valid passport for each applicant and dependent
• Police clearance certificate from your country of residence
• Proof of funds or evidence of the qualifying investment
• Bank statements or evidence of a continuing income source
• Medical and health-insurance documentation
• Marriage and birth certificates for accompanying family (apostilled if foreign)
• Completed application forms with passport photographs

Document lists and fees change — always confirm current requirements with the authorities (linked below) before you start.

Cost & timeline

How your income is taxed

Bermuda operates on a territorial-style, no-income-tax basis: there is no personal income tax, no capital gains tax, no VAT and no inheritance tax on residents or non-residents. Worldwide income is not taxed by Bermuda, which is a large part of the island's appeal to relocating capital.

Revenue is instead raised through other charges. Payroll tax applies to employment and self-employment income on a progressive scale (employee portions running from around 0.5% up to about 12.5% across bands), land tax is charged twice yearly on the annual rental value of property, and customs duties on imports are steep, commonly around 25%. Verify current rates before relying on them.

Plan your position deliberately — see how to establish tax residency abroad, and mind exit taxes and any double-tax-treaty tie-breakers.

The upside — why people choose Bermuda

• No personal income, capital gains or inheritance tax on residents
• Worldwide income falls outside Bermuda's tax net
• Stable, English-speaking British Overseas Territory with a common-law legal system
• Investor certificate covers spouse and eligible dependents
• Sophisticated financial, insurance and reinsurance sector on the doorstep
• High standard of living, safety and strong global connectivity to the US East Coast

Common challenges to plan for

• Extremely high cost of living, with housing, groceries and services among the priciest anywhere
• The investor route demands a substantial commitment of around BMD 2.5 million
• No easy path to permanent residency or citizenship for most economic migrants
• Steep customs duties (commonly around 25%) inflate the price of imported goods
• Policies change frequently and are administered case by case, adding uncertainty
• US citizens remain taxed by the US on worldwide income regardless of Bermuda's regime

Who it suits

Bermuda suits genuinely high-net-worth individuals and families who value a zero-income-tax environment, proximity to the US and a stable British Overseas Territory, and who can comfortably meet the roughly BMD 2.5 million investment or demonstrate substantial independent means. It is a poor fit for budget-conscious remote workers or anyone seeking a straightforward, low-cost route to permanent residency or a second passport.

How Expectat helps

Bermuda's routes are navigable on your own — and if that's your plan, the steps above are the plan. But if you'd rather not manage forms, apostilles and appointments in a second language, we can map the right route for your situation, connect you with vetted local specialists, and make sure the move actually delivers the tax outcome you're after — not just a residence card. Book a strategy call and we'll plan it with you.

Where it fits in a borderless plan

Residency is one flag of several. Pair a base like Bermuda with a deliberate capital structure and a Bitcoin self-custody plan. For the wider map of low- and zero-tax bases, see countries with no income tax in 2026.