BermudaCompany formation, tax and banking

Why people choose Bermuda

• The world's reinsurance capital, with more insurance-linked securities than anywhere
• Company law US investors know, popular for NYSE and Nasdaq listings
• Regulator recognised as equivalent to the EU's Solvency II insurance rules
• No company tax unless your group's revenue is above EUR 750m
• Insurers usually meet presence rules through their local managers

Where Bermuda fits

• Reinsurance
• Listed holdcos
• Insurance-linked securities

Where Bermuda fits in a structure

Typical role · Reinsurer or US-listed top company

Bermuda usually sits at the top of an insurance group, or as the company that lists on the NYSE or Nasdaq. Insurers pass catastrophe risk to it as reinsurance (insurance for insurers), and investors back that risk through shares or insurance-linked securities. It relies on its regulator, the BMA, whose standards big investors and auditors already accept.

What it depends onFrom 2025 groups with revenue above EUR 750m pay 15% company tax, Bermuda is expensive on purpose with high professional fees, significant yearly government fees and sizeable bank balances, and investors still pay tax where they live.

A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.

Opening a bank account

Butterfield, HSBC Bermuda and Clarien Bank serve the market. Banking is conservative and built on relationships, with sizeable minimum balances for business accounts. Insurance companies usually bank through their managers' existing relationships.

How tax works here

Historically no company tax, income tax or capital gains tax. From 2025 Bermuda charges 15% company tax on multinational groups with revenue above EUR 750m, in line with the OECD's global minimum (Pillar Two). Payroll tax applies to jobs in Bermuda. Yearly government fees are significant.

Real presence, and who can see the owners

Substance rules apply to certain activities; insurance and fund management companies usually meet them through their local managers. The BMA checks the real owners before the company is set up and keeps them on a private register. Bermuda's strong regulatory reputation helps a structure rather than getting in its way.

When to choose it

Choose Bermuda for reinsurance, catastrophe bonds and insurance-linked securities, or when a group plans to list in the US and needs a home that big investors already accept.

You get a written comparison, not a sales pitch.

Every Bermuda recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.