About
BERMUDA
Bermuda
offshore banks
Bermuda offshore service
providers
Bermuda was first settled in 1609 by shipwrecked English colonists headed
for Virginia. Tourism to the island to escape North American winters first
developed in Victorian times. Bermuda has developed into a highly successful
offshore financial center. A referendum on independence was soundly defeated
in 1995.
Economy
Bermuda enjoys the third highest per capita income in the world, more
than 50% higher than that of the US. Its economy is primarily based on
providing financial services for international business and luxury facilities
for tourists.
A number of reinsurance companies relocated to the island following the
11 September 2001 attacks and again after Hurricane Katrina in August
2005, contributing to the expansion of an already robust international
business sector.
Bermuda is an Offshore financial centre, which results from its low direct
taxation on personal or corporate income. The local tax system is based
upon import duties, payroll taxes and consumption taxes.
As the offshore domicile of many foreign companies, Bermuda has a highly-developed
international business economy; it is a financial exporter of financial
services, primarily insurance, reinsurance, investment funds and special
purpose vehicles (SPV). Finance and international business now constitute
the largest sector of Bermuda's economy.
Bermuda's tourism industry - which derives over 80% of its visitors from
the US - continues to struggle but remains the island's number two industry.
Most capital equipment and food must be imported.
GDP: purchasing power parity - $5.85 billion (2007 est.)
GDP - per capita: $91,477
(2007 est.)
Currency:
Bermudian dollars (BMD) per US dollar
- 1.0000 (fixed rate pegged to the US dollar)
There are no income or corporation tax, no capital gains tax, no VAT or sales tax, and no withholding tax. Companies and partnerships pay annual fees to the Government depending on their nature and capitalisation.
Some incorporation benefits:
• Bermuda exempted companies are granted an exemption from all forms of taxation in Bermuda (such as income tax, capital gains tax, etc...
• minimum of one shareholder is required and bearer shares are not permitted.
• an exempt company may carry on business from within Bermuda only in connection with transactions and activities external to Bermuda. The most common business activity of exempted companies is investment holding.
• Bermuda law provides that companies may continue into, and discontinue out of, Bermuda.