Bermuda


ESSENTIAL FACTS

LOCATION: 32 20 N, 64 45 W
Bermuda is comprised of 140 coral islands and is located in the North Atlantic Ocean.

POPULATION: 66,163

CURRENCY: Bermudan dollar (BMD)

LANGUAGE: English (official), Portuguese

CLIMATE: Bermuda has a subtropical climate, marked by mild temperatures and humid air. There are frequent gales and strong winds in the winter months.

EDUCATION: 98 percent of Bermuda citizens over age 15 can read and write.

PUBLIC HOLIDAYS: Bermuda Day, 24 May

HISTORY AND GOVERNMENT

HISTORY
English settlers on the way to Virginia in 1609 were shipwrecked and landed in Bermuda, and the rest is history. Bermuda continues to be a British Commonwealth, with tourism and offshore banking being its biggest draws.

POLITICAL SYSTEM
Bermuda is a self-governing territory with a parliamentary system of government. The Queen of England appoints and is represented by Bermuda’s Governor. The Premier is elected, then nominates his or her Deputy Premier and cabinet.

The legislative branch of Bermuda’s government consists of a bicameral Federal Parliament, with a Senate and a House of Assembly.

JUDICIAL SYSTEM
The legal system is based on English common law. The judicial branch consists of the Supreme Court, the Court of Appeal and the Magistrate Courts.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: Bananas, vegetables, citrus, flowers; dairy products, honey
Industry: International business, tourism, light manufacturing

TRADE PRACTICES
Re-exports of pharmaceuticals to Spain, UK, Brazil, Sweden
Imports: Clothing, fuels, machinery and transport equipment, construction materials, chemicals, food and live animals from the US, Venezuela, Canada

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
Bermuda is home to the world’s highest per capita income. Its two main economic sources are financial services and high-end tourism, mostly from US visitors. Agriculture is minimal; industry lags behind similarly rich countries.

Fiscal year: 1 April - 31 March

BANKING
Bermuda follows OECD international standards of transparency and is at the forefront of banking supervision techniques.

STOCK MARKET
Market value of publicly traded shares: $2.125 billion as of 2005

MEMBERSHIPS
Caricom (associate), Interpol (sub-bureau), IOC, ITUC, UPU, WCO

REAL ESTATE

Foreigners can only purchase property that is documented to have an Annual Rental Value (ARV) of USD$153,000or condominiums with an ARV of USD$32,400. All property purchases by foreigners are subjected to a payment of 24 percent of the selling value of the property payable to the Ministry of Labour and Home affairs. The average price of a home in Bermuda is well over USD$900,000.

LABOUR

BENEFITS/PENSION
All workers in Bermuda - whether resident or foreign, executive or menial, receive the same treatment in regards to benefits and payroll taxes.

IMMIGRATION

IMMIGRATION FACTS
The Bermuda Immigration and Protection Amendment Act of 2007 is the first update to Bermuda’s immigration laws in 50 years and reflects more modern processes and streamlining of the bureaucracy involved.

EMPLOYMENT
All employment opportunities are advertised, with the exception of executive-level positions. If no Bermudan can fill the position, any foreigner NOT already married to a Bermudan can apply for the job. Permits are not normally given to people with more than two children; the fee can be as high as USD$3,082 (five-year permit).

BUSINESS

BUSINESS ENTITIES
Bermudan businesses must be 60% owned by a Bermudan. Businesses that do not do any local business are exempt from this rule. An exempt company must have a physical presence in Bermuda, as well as at least two officers located in Bermuda.

The registration process for any Bermudan company takes less than a week, unless the business is considered “unusual” by Bermudan government standards; in these cases, the process is significantly longer - up to two months - as the company can be established only through Parliament. The minimum capital is $12,000.

Accounts, the share register and board meeting minutes are all held by locally authorized accounting offices, and most all incorporation information is available to the public.

TRUSTS
Bermudan trust facts:

  • 100-year maximum duration
  • Protected from judgments, liens and settlements
  • The Privy Council of England hears appeals
  • At least one trustee must be a Bermudan
  • Foreign trusts can include Bermudan real property
  • No registration is required
  • No stamp duties are due at time of creation

TAXATION
For at least three years, Bermuda has been at the forefront of taxation information disclosure, in an ongoing international effort to stop tax evasion and other taxation abuses.

CORPORATE TAXATION
In Bermuda there is no income tax, corporation tax, capital gains tax, VAT, sales tax, or withholding tax. However, there are annual government fees to be paid, and payroll taxes are mandatory.