The end of the tax-free era: Bermuda prepares for change

An important announcement from the Government of Bermuda: the country has reached an agreement with the OECD and is coming to a decision to end its tax-free status. As part of this initiative, Bermuda plans to implement a corporate income tax, as well as taxes on capital gains and dividends. An important step will also be joining the global initiative to introduce a 15% income tax for international corporations.

Immediately after the announcement of the government, public consultations will begin, the results of which will be announced in a few months. It is planned to introduce new tax rates from January 1, 2025. Bermuda’s leaders are convinced that to remain attractive to global business, they will need to rethink existing tax liabilities, such as payroll taxes and customs duties.

Although the use of Bermuda companies is not a popular practice in many regions of the world, this event deserves attention, as it reflects the general trend towards the abandonment of classic offshore jurisdictions, which one by one are transforming their tax policies.