Bermuda – Self-Employment

How does self-employment work for expats in Bermuda?

Only those who are Bermudian by birth or status, married to a Bermudian-based individual, or holders of a Permanent Resident Certificate can work in Bermuda without a permit. For everyone else, working in any capacity — including self-employment — requires formal government authorisation. This makes Bermuda considerably more restrictive than most other jurisdictions when it comes to independent working arrangements.

Non-Bermudians are only allowed a work permit for one employer, not several — a Bermuda-only stipulation that is not in effect in most other places. It means that non-Bermudians are not allowed to work for more than one employer, so cannot act as employers of or consultants to any other Bermuda-based employer or entity. In practical terms, this means traditional freelancing — where you work for multiple local clients — is not permitted under a standard work permit.

Bermuda has created the Global Entrepreneur Work Permit (GEWP) to attract start-up founders and self-employed businesspersons who wish to establish a presence on the island. This programme is essentially a one-year work permit that allows an individual to reside in Bermuda while laying the groundwork for a new venture. It’s a good option for entrepreneurs who don’t yet have a Bermuda company or local staff, but want to relocate to build their business.

Unlike a standard work permit, the GEWP is not tied to a pre-existing local employer. Instead, the applicant themselves is effectively the business initiator. This is the key distinction that makes the GEWP the most relevant route for expats wishing to be self-directed. It is important to understand, however, that you are expected to be working towards establishing a formal company rather than operating as an indefinite independent consultant to local businesses.

The revised policy clarifies that a Global Entrepreneur Work Permit is used where a business service company has a business relationship with a global investor who wishes to domicile a company in Bermuda. The applicant will need to satisfy the minister that they are a bona fide investor, and will be required to meet compliance or financial requirements or demonstrate proof of their ability to raise capital.

How do I register as self-employed in Bermuda?

There is no standalone “self-employed” registration in Bermuda as you might find in countries like France (auto-entrepreneur) or Australia (ABN). The closest equivalent is securing the Global Entrepreneur Work Permit and then proceeding to incorporate an Exempted Company. The steps below cover the process of obtaining the GEWP as your foundation for self-directed work.

1. Confirm your eligibility. Ensure your business plan is clear and convincing about how it will benefit Bermuda — economically or technologically. The Government assesses applications on the strength of the proposed venture and the applicant’s financial standing.
2. Prepare your documentation. You will need a valid passport, a detailed business plan, proof of financial means (such as bank statements or investment records), proof of valid health insurance, and a clean police certificate from your country of residence. The Bermuda Monetary Authority (BMA) requires that each of the ultimate beneficial owners holding 10% or more of the share capital sign a declaration and provide a certified copy of their passport or other official identification.
3. Seek local professional support. It helps to have local contacts — such as law firms, accounting firms, or existing businesses — vouch for you. Engaging a Bermuda-based corporate service provider or immigration lawyer before you apply is strongly recommended.
4. Submit your GEWP application. Applications are made to the Department of Immigration. The Minister will grant a permit provided he is satisfied that the applicant is a bona fide investor or businessperson that is likely to domicile a company in Bermuda. Advertising is not required for such permits.
5. Await a decision. The relatively low cost and quick processing of this permit have made it a popular route for self-employed professionals and mobile entrepreneurs. Check the official Government of Bermuda website for current fee levels and processing times, as these are updated periodically.
6. Commence your business activities. The GEWP is issued for up to one year (initially) and is renewable on a case-by-case basis. During that year, the permit holder can work and reside in Bermuda for the purpose of starting an exempted company or an innovative new business.
7. Transition to permanent structure. If your startup succeeds and you incorporate in Bermuda, you would then transition to an appropriate long-term status. The GEWP is essentially a bridge for entrepreneurs before their company is fully established.

Can I work as a digital nomad in Bermuda?

As of 28 February 2025, Bermuda officially discontinued its popular “Work from Bermuda” (WFB) Certificate. This programme was widely used by remote workers and students who wanted to live on the island while employed by companies outside of Bermuda. Its closure marks a significant change for anyone who had been considering Bermuda as a remote-work base.

The programme, introduced in August 2020, was part of a global trend during the height of the COVID-19 pandemic to attract remote professionals. The scheme was popular — with the Bermuda Government reporting around 1,800 participants. Despite its success, the Government announced it will be “transitioning back to multi-year residency applications for individuals who wish to reside in Bermuda,” stating that the transition aligns with the Government’s long-term economic strategy and housing policies.

While the island no longer offers a dedicated visa for digital nomads, it remains accessible to non-employed residents through avenues like Permission to Reside on an Annual Basis and the Economic Investment Certificate. These options cater to individuals with varying financial capacities and long-term residency goals, however the requirement to have adequate financial resources does mean that many individuals would not qualify.

The Government’s granting of permission to reside on an annual basis allows individuals to reside in Bermuda without a work permit connected with local employment. Applicants must be over 18 years of age, demonstrate good character, have adequate financial resources, and possess valid health insurance. Permissions can be granted for up to five years. Importantly, under this route you cannot work for a Bermuda employer, though working remotely for overseas clients or employers is permitted.

Those considering a move to Bermuda specifically to work remotely should consult an immigration lawyer and check the Government of Bermuda website for the most current residency options, as policies continue to evolve.

How can an expat start a company in Bermuda?

A foreigner can start a business in Bermuda, provided that they register as an Exempted Company. An exempted company is one which is “exempted” from the requirements imposed on local companies by the Bermuda Companies Act 1981 — in particular, the requirement that at least 60% of the equity of a company must be owned and controlled by Bermudians does not apply to exempted companies. This makes the Exempted Company structure the standard vehicle for expat-owned businesses.

The primary corporate structure used in Bermuda for international business is the Exempted Company, governed by the Bermuda Companies Act 1981. These entities are limited by shares and are specifically designed for operations that do not intend to carry out business within the domestic Bermuda market. Think of it as similar to setting up an international holding company: it’s incorporated in Bermuda but intended to operate externally.

Exempt companies in Bermuda are exempt from a large number of taxes: an Exempt Company has no taxes on profits, income, or dividends, nor is there any capital gains tax or estate duty within Bermuda. This tax-neutral environment is one of the primary reasons Bermuda attracts international businesses, particularly in the insurance, reinsurance, and fintech sectors.

Exempt Companies in Bermuda are exempt from a large number of taxes. An Exempt Company has no taxes on profits, income or dividends, nor is there any capital gains tax, estate duty or death duty within Bermuda. It is worth noting, however, that the Bermuda government has released a proposal to levy a 15% corporate income tax, effective for tax years beginning on or after 1 January 2025. Businesses should consult a Bermuda tax adviser for up-to-date guidance on this evolving area.

The Companies Act restricts an exempted company from carrying on business in Bermuda, trading in Bermuda, or owning real estate in Bermuda. If you wish to trade locally, a separate licence from the Minister of Finance is required — a more complex and less commonly granted process.

How do I set up a company in Bermuda: step by step?

The incorporation process generally takes around two weeks. Here is a practical breakdown of the key steps involved in setting up an Exempted Company in Bermuda.

1. Choose and reserve your company name. Start by reserving your company name with the Registrar of Companies. The Registrar will refuse reservation if there is likely to be an obvious conflict with an existing registered name. Reservation will ensure that no other person can use the name or another similar name while your application is in progress.
2. Appoint a registered agent and establish a registered office. All Exempt Companies must have a resident agent and a registered office, which must be a physical address in Bermuda. The registered office is where documents may be legally served on the company and where the share register, register of directors and minute book are kept. Corporate service providers in Bermuda typically offer this as part of an incorporation package.
3. Prepare your constitutional documents. The memorandum of association must be lodged with the Registrar. The memorandum specifies the activities in which the company may engage, the share capital, the liability of shareholders, and the rules governing the internal management of the company.
4. Apply for BMA approval. The Bermuda Monetary Authority (BMA) must approve the incorporation of all Bermuda exempted companies. The BMA requires that each of the ultimate beneficial owners holding 10% or more of the share capital sign a declaration and provide a certified copy of their passport or other official identification. By the declaration, each beneficial owner attests to his or her good standing in any other Bermuda operations.
5. Place a newspaper notice. An advertisement must be placed in a local newspaper announcing the intention to incorporate. The name of the proposed company, together with the objects clauses, must be disclosed in the advertisement, confirming whether the company wishes to be exempted or domestic.
6. Appoint directors and a company secretary. The Companies Act 1981 requires a minimum of one director and one shareholder to incorporate an exempted company in Bermuda; these can be of any nationality and need not be resident in Bermuda. However, all exempted companies must appoint a local Bermuda-based individual to act as a director, secretary, or resident representative.
7. File with the Registrar of Companies. Submit all documents — including the memorandum of association, director and shareholder details, and BMA consent — to the Registrar of Companies. Applicants must provide certified identification documents and proof of address for all directors, beneficial owners, and shareholders.
8. Pay the annual government fee. The only tax imposed on an exempted company that does not have employees in Bermuda is an annual government fee, the first payment of which is made immediately upon incorporation, with subsequent payments due in January of each year. Government fees are calculated according to the assessable capital of the company — check the official Registrar’s fee schedule for current figures.

Are there incentives or programs to encourage expat entrepreneurs?

Bermuda has put in place a number of targeted programmes designed to attract founders, investors, and innovative businesses to its shores. These go beyond the standard work permit framework and offer meaningful incentives for the right applicants.

New Business Work Permit
A New Business Work Permit allows an exempted company that is new to Bermuda to receive automatic approval of work permits within the first nine months of obtaining the first new business permit. When a new company is starting up in Bermuda, during its first year of operation it can fast-track permits for key employees without advertising. This encourages startups to establish on the island. These permits can also be up to 5 years.

Fintech Business Work Permit
A Fintech Business Work Permit allows a Fintech company that is new to Bermuda to receive immediate approval of five work permits within the first six months of obtaining the first Fintech Business Work Permit. This is designed to fast-track the hiring of skilled international talent in the digital assets and blockchain sector — an area Bermuda has actively positioned itself as a global leader in.

Economic Investment Certificate (EIC)
For those with significant financial means, Bermuda offers the Economic Investment Certificate. Introduced in 2021, this programme grants a five-year residency to individuals who invest at least $2.5 million in the Bermudian economy. Eligible investment avenues include real estate, government bonds, contributions to local charities, or establishing a new business. After five years, EIC holders can apply for a Residential Certificate, allowing indefinite residency.

Business Development Agency (BDA)
Bermuda’s Business Development Agency (BDA) promotes foreign and overseas investment. Bermuda is recognised as a world-class commercial centre with a stable political and economic environment and a skilled labour force. The BDA acts as a first point of contact for businesses looking to establish in Bermuda and can provide introductions to professional service providers, legal advisers, and government contacts. Visit bda.bm for more information.

Tax Assurance for Exempted Companies
The Bermuda Government Minister is authorised to give an assurance to an exempted company that in the event of legislation being enacted imposing tax computed on profits or income or computed on any capital asset, the imposition of any such tax shall not be applicable to such entities. This provides a degree of long-term tax certainty that is rare globally. Businesses should seek professional advice regarding the proposed 15% corporate income tax and how it may affect this assurance going forward.

Frequently asked questions

Can an expat work as a freelancer for multiple Bermuda-based clients?

Non-Bermudians are only allowed a work permit for one employer. This means that non-Bermudians are not allowed to work for more than one employer, so cannot act as consultants to any other Bermuda-based employer or entity. Traditional freelancing across multiple local clients is therefore not permitted. The Global Entrepreneur Work Permit offers the closest alternative for self-directed entrepreneurs.

Is it still possible to work remotely from Bermuda in 2025?

As of 28 February 2025, Bermuda officially discontinued its “Work from Bermuda” Certificate. Remote workers who wish to remain on the island must now apply for Permission to Reside on an Annual Basis or another qualifying residency route. Working remotely for an overseas employer under this residency permission is still permitted, but a dedicated digital nomad visa no longer exists.

How long does it take to incorporate an Exempted Company in Bermuda?

It is quick to incorporate an exempted company in Bermuda. It only takes approximately 2 weeks to create an exempted company. This timeline assumes all required documentation — including BMA declarations, certified ID, and the newspaper notice — is submitted correctly and promptly.

Do I need to be physically present in Bermuda to set up an Exempted Company?

It is not mandatory to travel to Bermuda for company formation. Many corporate service providers offer full remote incorporation services. However, if you intend to operate the business from Bermuda and apply for a work permit to do so, physical presence and residency will become necessary at that stage.

Are there any taxes on Exempted Companies in Bermuda?

An Exempt Company has no taxes on profits, income, or dividends, nor is there any capital gains tax or estate duty within Bermuda. However, the Bermuda Government has released a proposal to levy a 15% corporate income tax, effective for tax years beginning on or after 1 January 2025. It is essential to seek advice from a qualified Bermuda tax professional for up-to-date guidance.

Can an Exempted Company carry on business locally within Bermuda?

Bermuda company law restricts an exempted company from carrying on business in Bermuda, except to the extent that it has been granted a licence by the Minister of Finance. This licence-based exception is available but involves additional scrutiny. Exempted Companies are primarily intended for businesses conducting operations outside Bermuda.

What is the minimum share capital required for a Bermuda Exempted Company?

A Bermuda Exempted Company can be formed with a minimum issued capital of only $1. In practice, the standard share capital is US$12,000 divided into 12,000 common voting shares of US$1, which is the maximum capital for the minimum capital duty payable on incorporation and annually thereafter. Confirm the current annual government fee structure with the Registrar of Companies.

What residency options are available for expat investors who want to live in Bermuda long-term?

Bermuda offers the Economic Investment Certificate, introduced in 2021, which grants a five-year residency to individuals who invest at least $2.5 million in the Bermudian economy. Eligible investment avenues include real estate, government bonds, contributions to local charities, or establishing a new business. For those with more modest means, Permission to Reside on an Annual Basis — requiring proof of financial self-sufficiency and valid health insurance — is the next most accessible route.