Ranked #3 on the Tax Attractiveness Index, Bermuda offers a corporate income tax rate 10.25% of total employee remuneration of any kind (global average of 23.54%) amongst various other Bermudan tax-relieving structures, a highly praised international banking system, and global citizen friendliness.
Bermuda Fast Facts
Capital City: Hamilton
Currency: Bermudan Dollar (BMD)
Time Zone: Atlantic Standard Time (GMT -4)
Main Languages: Bermudan English
Due to Bermuda's islandic geographic positioning, a lot of online bank account brokers are out there to help people open accounts without having to travel there. The four official banks resident in Bermuda include HSBC Bank of Bermuda, Bank of N.T. Butterfield and Son, Bermuda Commercial Bank and Clarien Bank.
The Bermudan dollar is pegged to the US Dollar, which means that the local currency will perform as well as the USD$ does. This lends itself toward currency stability, as the USD$ has outright proven itself to be the most resilient and highest performing currency on Earth.
TAX BENEFITS
Individuals who don't get taxed on their personal income in Bermuda. Instead, the Bermudan government leverages Payroll tax from local companies. A 6% figure is skimmed off the top of annual salary amounts to be paid out by employers, and this percentage varies for self-employed or freelancer professionals.
This makes company incorporation in Bermuda incredibly attractive. As a non-resident of Bermuda, you can trade shares of local investment funds without being subject to capital gains tax. If your non-Bermuda based dividend income gets paid directly into a Bermudan account, there will be no taxes imposed on these amounts.
Bermuda imposes no taxes on profits, income, dividends, or capital gains, has no limit on the accumulation of profit, and has no requirement to distribute dividends. Execution fees imposed by banks for trading on stock markets is currently a concern though, as they keep increasing.
ESTEEMED BANKING REPUTATION
Apart from not having been wrapped in tax evasion scandals such as the likes of Panama (which funnily enough, people still bring their business to Panama), the Bermuda Monetary Authority (BMA) has regulated Bermuda's financial services sector in a balanced and client-centric way.
The BMA has taken initiative to join the Common Reporting Standard (CRS) to demonstrate their desire for increased levels of transparency, which within itself attracts a lot of international investors, especially from the tremendously regulated 1st world.
OPENING AN ACCOUNT
Bermudan banks offer the same types of bank accounts as many other offshore tax havens, such as personal, corporate, savings or cheque accounts. Most banks such as Barclays and HSBC, will charge a monthly maintenance fee of USD$8, and will increase this fee if your account has been inactive for 2 years.
Once fully vetted of all our certified personal and/or corporate documents, a usual USD$25,000.00 minimum deposit amount will be required. Some personal accounts require you to have at least USD$5,000.00 as the initial deposit.
REGULATORY "RED" TAPE
Always make sure you are reporting your income and banking activity to your home country's tax authority, as they can't tax you for the money you make that doesn't come into the country. The reporting is for the maintenance of your reputation and good standing with your local tax authority, as it is a legal requirement that they see all monies you are generating from your economic activities.
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