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Bermuda: Offshore Legal and Tax Regimes

Offshore Activities

Generally, the forms of company and partnership described above which are those used for offshore operations are allowed to trade freely from Bermuda with external partners, but must limit their dealings on the island to other exempt entities, to dealing in securities, (for mutual funds) to selling shares, and to managing the affairs of other exempt or non-resident entities. It is possible to obtain a license from the Minister of Finance to carry out other types of business activity on the island, if he considers it is in the interests of Bermuda. In view of the Government's support for e-commerce, these licenses are readily issued for Internet providers and infrastructure companies.

Exempt entities are not allowed to buy freehold property on the island, but may lease office accommodation for their own use. An exempt entity can hold a mortgage on a Bermudian property (usually to assist an executive in purchashing accommodation) but needs the consent of the Minister of Finance if the amount is greater than BMD50,000.

 

 

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