Bermuda is recognized for its favorable tax environment, making it a preferred destination for individuals seeking straightforward rules on tax residency. This article details the current framework governing tax residency for individuals in Bermuda in 2025, outlining all key regulations and residency pathways, based strictly on data provided by Bermuda’s authorities.
Overview of Tax Residency Rules in Bermuda (2025)
The regulatory framework for tax residency in Bermuda is notably streamlined compared to many other jurisdictions. Traditional rules such as the 183-day residency test, center of economic interest, habitual residence, center of family life, or citizenship-based tests do not apply.
| Criteria | Applies in Bermuda (2025) |
|---|---|
| Minimum Days of Stay Required | 0 days |
| 183-Day Rule | No |
| Center of Economic Interest Rule | No |
| Habitual Residence Rule | No |
| Center of Family Rule | No |
| Citizenship Rule | No |
| Extended Temporary Stay Rule | No |
Unlike jurisdictions where tax residency is triggered by a specific period of physical presence or other objective tests, Bermuda does not impose such requirements for individuals. There is literally no minimum day requirement, and none of the standard residency criteria apply.
Other Relevant Pathways and Permissions
While there are no formal tax residency rules, individuals must still comply with Bermuda’s immigration provisions to live, work, or study on the island:
- Work Permit: Non-Bermudians are permitted to reside in Bermuda only if they hold a valid work permit. Employment-based residency is strictly regulated and requires an approved permit for lawful presence and work activities.
- Work from Bermuda Certificate: This special status, introduced in recent years, allows eligible remote workers and students to live and work (or study) in Bermuda. The certificate is issued on a one-year basis and is subject to annual renewal, providing a clear and compliant path for temporary residency without local employment.
| Type of Permit or Certificate | Main Feature | Duration | Renewable? |
|---|---|---|---|
| Work Permit | Allows lawful employment and residence | As per employment contract | Subject to re-application/renewal |
| Work from Bermuda Certificate | Permits remote work/study from Bermuda | 1 year | Yes (annual renewal) |
Bermuda’s Approach: What This Means for Individuals
The absence of conventional tax residency rules means that, from a local perspective, there is no statutory period or test that would trigger individual tax residency in 2025. However, your immigration status—work permit, Work from Bermuda Certificate, or other category—does define your legal right to remain and carry out activities in Bermuda.
Pro Tips for Managing Residency Status in Bermuda
- Ensure all necessary permits or certificates are obtained before relocating, as this is the main regulatory hurdle for foreign individuals considering a move to Bermuda.
- Renew your Work from Bermuda Certificate promptly every year to avoid any lapses in your residency status if you plan to continue working or studying remotely.
- Maintain clear and complete documentation of your entry, exit, and permit renewals as Bermuda’s authorities may require proof of compliance for ongoing permissions.
- If your employment status or role changes while in Bermuda, immediately notify the appropriate government department to remain in full compliance with local regulations.
Where to Find Official Information
For the most accurate and up-to-date guidance, consult the Government of Bermuda’s official website: https://www.gov.bm
In summary, Bermuda offers an exceptionally clear and favorable framework for individuals concerned about complex tax residency regulation. There are no standard residency triggers such as minimum days or economic interest tests, and all focus is placed on compliance with immigration permissions. For those considering relocating to Bermuda in 2025, ensure all employment or remote work documentation is fully in order to enjoy Bermuda’s straightforward and welcoming regulatory environment.