Bermuda has no income tax, no capital gains tax, no investment or dividends tax, and no VAT. Instead of an income tax, Bermuda levies a payroll tax on employers of up to 14.5% of employees salaries, up to 8.5% of which can be recouped from employees.
Is working in Bermuda tax free?
With the exception of the Payroll Tax (summarized below), there is no income tax, capital gains tax, or withholding tax in Bermuda. Tax revenue is derived primarily from the payroll tax, customs/import duties, real property tax, corporate services tax, and fuel taxes.
How much tax do you pay in Bermuda?
Effective 1 July 2019, the progressive scale of tax rates ranges between 0.80% and 50.00% based on the ARV of the unit. The land tax on commercial properties is 9.5%, which is effective with respect to commercial properties from 1 July 2019. For tourist properties, the tax rate is 8%.
Do US citizens pay taxes when working abroad?
Yes, if you are a U
citizen or a resident alien living outside the United States, your worldwide income is subject to U
income tax, regardless of where you live.
Do dual citizens pay double taxes?
For individuals who are dual citizens of the U
and another country, the U
imposes taxes on its citizens for income earned anywhere in the world. If you are living in your country of dual residence that is not the U
, you may owe taxes both to the U
government and to the country where the income was earned.
How can I avoid paying U.S. taxes abroad?
How Can I Avoid Paying US Taxes Abroad? Based on the current US tax laws, the only way to avoid filing a US tax return and paying US taxes abroad is to renounce US citizenship. Renouncing your US citizenship is a serious and permanent decision that should not be taken lightly.
