Lexology Panoramic: Private Client 2026 – Bermuda

Legal Framework

Key Legislation

What key legislation and regulations are relevant to foreign individuals moving to or investing in your jurisdiction? What government bodies are charged with enforcing these laws and what is the extent of their powers?

The Bermuda Department of Immigration is responsible for administering and enforcing the key immigration legislation – namely, the Bermuda Immigration and Protection Act 1956. Foreign nationals who are not married to a Bermudian require a valid work permit or a permanent resident’s certificate (PRC) to be able to work in Bermuda. The PRC requirements vary but generally involve demonstrating substantial means or income, good heath and lack of criminal convictions. Common routes to a PRC include long-term residency in Bermuda, investment in a Bermuda-based company or holding senior executive roles.

Standard work permits are granted for between one and five years. Short-term work permits may be granted for periods up to six months.

The Department of Immigration’s powers under the Bermuda Immigration and Protection Act stem from the minister of labour who holds broad discretionary authority to grant, withhold or modify work permits.

Bermuda encourages high net worth individuals to make substantial economic investments into Bermuda. Under Bermuda’s Economic Investment Certificate (EIC) and Residential Certificate Policy administered by the Department of Immigration, non-Bermudian individuals who invest at least 2.5 million Bermuda dollars in a qualifying investment receive (1) the right to live in Bermuda with their spouse/dependents, and (2) automatic approval to work – together with a path to long-term residency after a period of five years. The Bermuda Business Development Agency provides a concierge service for applicants.

Qualifying investments must be maintained at a threshold value of 2.5 million Bermuda dollars for at least five years in one or more of the following:

• residential or commercial real estate in Bermuda;
• Bermuda government bonds;
• the Bermuda Sinking Fund;
• the Bermuda Trust Fund;
• a Bermuda-registered charity in the areas of sports development, youth, seniors or health;
• an existing Bermuda-based business; and/or
• such other social or useful ventures that benefit Bermuda, Bermudians and things Bermudian as may be determined by the minister responsible for immigration.

Real property

Are there any particular rules or restrictions on foreign individuals purchasing or investing in real property in your jurisdiction?

Ownership of Bermuda real property is generally restricted to citizens of Bermuda, although a limited inventory of real estate is available to non-Bermudians. Real estate available to non-Bermudians tends to be very expensive, and is subject to a one-off licence fee that can take between six and nine months to process and currently costs between 12.5 per cent and 18 per cent of the property’s value.

To invest in Bermuda real estate without directly owning a property, Bermuda has a variety of regulated and non-regulated investment funds. Laws and policies regarding property investment can change and so it is essential to take local advice for up-to-date information.

Establishing a business

Are there any particular rules or restrictions on foreign individuals establishing a business in your jurisdiction?

Bermuda companies fall into two principal categories: companies incorporated in Bermuda to trade primarily in Bermuda (known as ‘local companies’) and companies incorporated by non-Bermudians for the purpose of conducting business outside of Bermuda (known as ‘exempted companies’).

Local companies are subject to what is known as the 60/40 rule, which provides that the percentage of Bermudian directors and the percentage of shares beneficially owned by Bermudians must be at least 60 per cent in each case.

Local companies can be exempted from the 60/40 rule by obtaining a licence from the minister of finance who has a statutory duty to take certain factors into consideration when coming to a decision, including the economic situation in Bermuda and the protection of persons already engaged in business in Bermuda.

In certain circumstances companies incorporated outside of Bermuda, known as ‘permit companies’, are permitted by the minister to trade or carry on business in Bermuda. A permit company will not be deemed to be carrying on business in Bermuda simply because meetings of its directors or shareholders are held in Bermuda.

Tax

Residence and domicile

How does an individual become taxable in your jurisdiction?

Domicile does not play any significant role in determining tax liability in Bermuda. There is no personal income tax in Bermuda, although the government levies a payroll tax on all employers and self-employed individuals at progressive rates based on total remuneration. Depending on circumstances, there might be a liability to land tax if an individual owns Bermuda real estate.

Income

What, if any, taxes apply to an individual’s income?

There is no personal income tax in Bermuda, although the government levies a payroll tax on all employers and self-employed individuals at progressive rates on total remuneration paid up to a maximum of 1 million Bermuda dollars per annum.

Capital gains

What, if any, taxes apply to an individual’s capital gains?

There is no capital gains tax in Bermuda.

Lifetime gifts

What, if any, taxes apply if an individual makes lifetime gifts?

There is no tax on lifetime gifts in Bermuda.

Inheritance

What, if any, taxes apply to an individual’s transfers on death and to their estate following death?

There are no inheritance or estate taxes in Bermuda, but there is stamp duty under the Stamp Duties Act 1976 on instruments that transfer Bermuda property (Bermuda dollar-denominated and Bermuda-situate assets, including shares held in a Bermudian company) from a deceased’s estate, subject to certain exemptions.

Real property

What, if any, taxes apply to an individual’s real property?

Annual land taxes are charged on Bermuda real property based on a notional annual rental value set by the government. The tax is payable whether or not the individual owning the property is Bermuda resident.

Non-cash assets

What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?

Customs import duties are imposed on almost all goods imported into Bermuda at varying rates. The most common rate of customs import duties is currently 25 per cent. Bermuda does not generally impose export duties.

Other taxes

What, if any, other taxes may be particularly relevant to an individual?

Bermuda’s contributory pension scheme requires employees to match employer’s contributions to the Contributory Pension Fund (current total approximately 75 Bermuda dollars per week). Self-employed individuals must contribute an equal amount.

Foreign currency purchase tax is imposed at the rate of 1.25 per cent on foreign currency purchased by a Bermuda resident from a local bank.

Trusts and other holding vehicles

What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?

Bermuda imposes no taxes on profits, income or dividends, nor is there any capital gains tax on trusts. There is a nominal stamp duty on certain trust instruments where the trust fund holds non-Bermuda property.

The Bermuda Corporate Income Tax Act 2023 applies a 15 per cent corporate income tax to Bermuda businesses that are part of a Multinational Enterprise Group with an annual revenue of €750 million or more.

Charities

How are charities taxed in your jurisdiction?

There are no income or capital gains taxes on Bermuda charitable entities. Certain stamp duty exemptions apply to instruments relating to Bermuda property (real or personal property situated in Bermuda) where a Bermuda charitable entity is a party.

Anti-avoidance and anti-abuse provisions

What anti-avoidance and anti-abuse tax provisions apply in the context of private client wealth management?

As Bermuda does not impose any income, capital gains or estate taxes, there are no anti-avoidance or anti-abuse tax provisions applicable in Bermuda. If a transaction is liable to stamp duty, it is an offence to split the transaction into more instruments than necessary in order to reduce the overall duty payable.

Trusts and Foundations

Trusts

Does your jurisdiction recognise trusts?

Bermuda’s principal statute governing trusts and their administration is the Trustee Act 1975. The statute is primarily based on the English Trustee Act 1925. Bermuda also has an extensive system of trust licensing for trustees regulated by the Bermuda Monetary Authority (BMA) requiring all public trust companies to possess an unlimited trust licence. The BMA vets and continually monitors licensed trustees to ensure, among other things, that they are controlled by fit and proper persons, meet minimum net asset requirements, have adequate insurance, records, systems and controls, and also carry out their business with integrity and skill.

Trusts available in Bermuda include:

• purpose trusts: to fulfil purposes as opposed to being for the benefit of beneficiaries. The concept was conceived primarily for the role of an insulator in a commercial setting;
• discretionary trusts: the most common form of trust established in Bermuda. Whether or not a beneficiary benefits is generally a matter for the trustees’ unfettered discretion;
• reserved power trusts: a settlor of a Bermuda-law trust may reserve for himself, or grant to any other person such as a protector, any limited beneficial interest in the trust property or certain powers;
• insurance trusts: Bermuda is a leading jurisdiction for insurance. Major insurance companies sell US dollar-denominated life and annuity policies to non-US and US persons. Many of these policies are owned by trusts created by insurance companies in order to characterise them as investment products rather than insurance;
• trusts for tax and estate planning: provided appropriate precautions were taken directed at distancing the settlor from control and benefit of the assets placed in the trust, the offshore trust industry historically offered tax and estate planning opportunities. While these opportunities have been progressively reduced by legislative measures taken in the United States, Canada, United Kingdom and elsewhere, they still exist – for example, for those whose domicile, residence or citizenship are in transition, or those who have the desire to dispose of estate on death freely without regard to forced heirship laws; and
• asset protection trusts: the term is commonly used to mean protection from one’s creditors. It may be possible to achieve such protection by transferring assets to a trust, or to a company owned by a trust, established in a suitable offshore location.

Private foundations

Does your jurisdiction recognise private foundations?

There is no foundation law in Bermuda, although the concept of foreign foundations is recognised.

Disputes

What issues typically give rise to disputes relating to trusts and foundations? How are these disputes resolved? (What are the most common causes of action? Which courts are used? Is alternative dispute resolution (ADR) available and commonly used? What remedies are commonly awarded?)

Bermuda has a formidable reputation as one of the premier offshore jurisdictions for trusts and trust law. Disputes are resolved by the Supreme Court of Bermuda (and if appropriate by appeals to the Court of Appeal and to the Privy Council), which regularly deals with trust administrative applications and disputes typically involving applications such as:

• directions by trustees;
• approval of restructuring or resettlement of trusts;
• construction and scope of trustee powers and duties;
• contentious transfer of trusteeship;
• actions for breach of trust;
• resolving disputes between beneficiaries or between them and trustees; and
• representation of minors and unascertained beneficiaries.

A wide range of remedies is available to the Court. ADR such as mediation might be available for appropriate cases. The Bermuda International and Mediation and Arbitration Centre (BIMAC) is scheduled to open in 2026.

Same-sex marriages and civil unions

Same-sex relationships

Does your jurisdiction have any form of legally recognised same-sex relationship?

The Domestic Partnership Act 2018 allows same-sex couples to form domestic partnerships but prohibits them from marrying.

The Domestic Partnership Act reversed the right for same-sex couples to marry, which had been granted by a previous court ruling. Following a legal challenge, the Privy Council held that the Act was not unconstitutional because it was consistent with the right to freedom of conscience and the right not to be discriminated against on the grounds of creed. Same-sex couples who were married before the Act came into force remain recognised as being married.

Heterosexual civil unions

Does your jurisdiction recognise any form of legal relationship for heterosexual couples other than marriage?

The Domestic Partnership Act creates a framework for heterosexual couples to formalise and register their domestic partnership.

Succession

Estate constitution

What property constitutes an individual’s estate for succession purposes?

In Bermuda an individual’s estate for succession purposes includes all property owned by the deceased at the time of their death whether held under legal or equitable title. If a Bermuda resident owns assets situated in another jurisdiction it is advisable for that individual to obtain advice in the relevant jurisdiction as to whether it is necessary or preferable to have a will governed by the laws of that jurisdiction in respect of such assets. Property held under a joint tenancy will pass to the surviving joint tenant(s).

Disposition

To what extent do individuals have freedom of disposition over their estate during their lifetime?

Bermuda has no forced heirship rules and individuals have freedom of disposition over their estate during their lifetime.

To what extent do individuals have freedom of disposition over their estate on death?

Bermuda has no forced heirship rules and freedom of testamentary disposition is allowed. Certain relatives may however apply to the Court under the Succession Act 1974 on the ground that the disposition of the deceased’s estate effected by a will and/or the law relating to intestacy does not make reasonable financial provision for them.

Intestacy

If an individual dies in your jurisdiction without leaving valid instructions for the disposition of the estate, to whom does the estate pass and in what shares?

Intestacy is governed by the Non-Contentious Probate Rules 1974 and the Succession Act. If the intestate leaves only a spouse, the spouse takes the residuary estate absolutely. If the intestate leaves a spouse and issue, the spouse will take the personal chattels absolutely and a sum equal to 50 per cent of the value of the residuary estate or 100,000 Bermuda dollars (whichever is the greater); the balance of the residuary estate is held for the deceased’s issue per stirpes. In the absence of spouse or issue the order of priority is parents, siblings (whole blood or their issue, then half-blood or their issue), grandparents, uncles and aunts (whole blood or their issue, then half-blood or their issue), failing any of these to the Crown.

Adopted and illegitimate children

In relation to the disposition of an individual’s estate, are adopted or illegitimate children treated the same as natural legitimate children and, if not, how may they inherit?

There is no distinction between legitimate and illegitimate children under Bermuda law. Where an adoption order has been made under the Adoption of Children Act 2006 or the law of any other jurisdiction, the child is in law the child of the adopting parents as if they were the natural parents.

Distribution

What law governs the distribution of an individual’s estate and does this depend on the type of property within it?

In the absence of a will, real property and personal assets located in Bermuda will pass according to the Succession Act.

Formalities

What formalities are required for an individual to make a valid will in your jurisdiction?

• The testator must be 18 or over and have the requisite testamentary capacity .
• The will must be in writing.
• The testator must sign (or mark if illiterate) their will in the presence of two independent witnesses who must be 18 or over and be of sound mind.
• The independent witnesses must see the testator sign and then sign themselves in the presence of the testator.

Foreign wills

Are foreign wills recognised in your jurisdiction and how is this achieved?

• A will executed outside of Bermuda may be effective in Bermuda if it meets the formality requirements of the Wills Act 1988 and can be admitted to probate in Bermuda.
• Certain foreign grants of probate and letters of administration can be resealed in Bermuda to enable foreign executors and administrators the right to administer the deceased’s Bermuda estate.

Administration

Who has the right to administer an estate?

If executors are named in a will, they have the right to administer an estate once they have obtained a grant of probate. If there are no executors (eg, none are named, the named executor(s) fail or there is no will), the Non-Contentious Probate Rules determine who may apply for a Grant of Letters of Administration. The order of priority for making such an application is as follows:

• surviving spouse;
• children of the deceased or the issue of any such child who has died during the lifetime of the deceased;
• father or mother of the deceased; and
• brothers and sisters of the whole blood, or the issue of any such brother or sister who has died.

How does title to a deceased’s assets pass to the heirs and successors? What are the rules for administration of the estate?

In Bermuda the authority to deal with a deceased’s assets requires either a court issued grant of probate (if a valid will exists) or a grant of letters of administration (if there is no valid will). Once a grant is obtained the personal representatives can pass good title to the beneficiaries under the will or intestacy rules.

The administration of an estate is governed by the Administration of Estates Act 1974 and the Non-Contentious Probate Rules.

Challenge

Is there a procedure for disappointed heirs and/or beneficiaries to make a claim against an estate?

Under the Succession Act, challenges can be made to the dispositive provisions of a will or to the intestacy trusts by a spouse, former spouse who has not remarried, child or grandchild maintained by the deceased, on the basis that the will or intestacy rules do not provide reasonable financial provision for the beneficiary bringing the challenge.

Capacity and power of attorney

Minors

What are the rules for holding and managing the property of a minor in your jurisdiction?

Minors (individuals under the age of 18) cannot hold or manage property in Bermuda. It is common for trusts to be established in Bermuda to hold property on behalf of minors.

Age of majority

At what age does an individual attain legal capacity for the purposes of holding and managing property in your jurisdiction?

Under the Age of Majority Act 2001, individuals are legally considered adults for all purposes at the age of 18.

Loss of capacity

If someone loses capacity to manage their affairs in your jurisdiction, what is the procedure for managing them on their behalf?

On the basis that the individual had not executed an enduring power of attorney while they still had capacity, an application to the Supreme Court would be required under the Mental Health Act 1968 for the appointment of a receiver to assume responsibility for the management of the property and affairs of the individual.

Immigration

Visitors’ visas

Do foreign nationals require a visa to visit your jurisdiction?

Visas to enter Bermuda are not required for citizens of the United Kingdom, the United States or Canada, or for individuals holding a valid visa for one of these countries. Subject to this, Bermuda can be visited without a visa for up to 180 days in any 12-month period and a ticket must be held for return or onward travel.

High net worth individuals

Is there a visa programme targeted specifically at high net worth individuals?

Under Bermuda’s Economic Investment Certificate and Residential Certificate Policy administered by the Department of Immigration, non-Bermudian individuals who invest at least 2.5 million Bermuda dollars in a qualifying investment receive the right to live in Bermuda with their spouse/dependents and automatic approval to work, together with a path to long-term residency after a period of five years. The Bermuda Business Development Agency provides a concierge service for applicants.

Qualifying investments must be maintained at a threshold value of 2.5 million Bermuda dollars for at least five years in one or more of the following:

• residential or commercial real estate in Bermuda;
• Bermuda government bonds;
• the Bermuda Sinking Fund;
• the Bermuda Trust Fund;
• a Bermuda-registered charity in the areas of sports development, youth, seniors and/ or health;
• an existing Bermuda-based business; and/or
• such other social or useful ventures that benefit Bermuda, Bermudians and things Bermudian as may be determined by the minister responsible for immigration.

Update & trends

Key developments

Are there any proposals in your jurisdiction for new legislation or regulation, or to revise existing legislation or regulation, in areas of law relevant to high net worth individuals, particularly those coming to or investing in your jurisdiction? Are there any other current developments or trends relevant to such individuals that should be noted?

Beneficial ownership register

On 3 November 2025, the Beneficial Ownership Act 2025 came into force, establishing a unified register for beneficial ownership of legal entities, aligning with international transparency standards. The Act replaces the previous beneficial ownership regime in Bermuda and significantly expands beneficial ownership transparency requirements to align with international standards.

The Act authorises the transfer of the existing central register of company beneficial ownership information from the Bermuda Monetary Authority to the Companies Registrar. The Registrar will have powers to disclose the information to competent authorities and obliged entities to exercise their statutory functions. The Act relates to beneficial ownership of legal persons, which includes companies, limited liability companies, permit companies, exempted partnerships, limited partnerships, exempted limited partnerships and overseas partnerships.

The Act restricts access to official bodies and to persons regulated under the anti-money laundering regime. Information disclosed by the Registrar to any person must not be further disclosed except for a statutory purpose and then only with the Registrar’s consent.

Ethical investments

The Trustee Amendment Act 2025, which came in to force on 10 October 2025, amended the Trustee Act 1975 to enable trustees to consider settlor and beneficiary views on ethical investments when making investment decisions. This is a welcome change as at present there is a certain level of uncertainty in most trust jurisdictions as to the ability of trustees with a general power of investment to exercise investment powers for reasons other than maximum financial return.

Office of the Public Guardian

The Government of Bermuda is actively working to establish an Office of the Public Guardian to protect vulnerable individuals. Legislative reform is underway in 2026 to strengthen safeguarding against financial abuse.

First Published in Lexology – April 2026