Moving to Bermuda: A guide to island life, visas, and expat tax requirements

Bermuda is a British Overseas Territory of roughly 181 islands and islets in the North Atlantic, about 650 miles east of North Carolina. Hamilton, the capital, is the hub of a concentrated financial services industry – reinsurance, investment funds, and offshore legal work. The resident population is around 64,000.

For Americans in finance, law, or insurance, moving to Bermuda means a strong professional market, no personal income tax on local earnings, and a subtropical climate. The trade-off is a high cost of living, strict immigration rules, and the fact that your US tax obligations follow you.

This guide covers how to move to Bermuda from the US – visas, daily logistics, and the federal filing requirements that apply once you arrive.

Key takeaways

• You need a job offer and an employer-sponsored work permit before relocating to Bermuda. There is no freelance or self-sponsored path to residency.
• Bermuda has no personal income tax, but you will pay payroll tax, social insurance, and high import duties on nearly all goods.
• Rent averages $1,500+ per room in shared housing, and the one car per household rule means most expats commute by scooter.
• The subtropical climate is humid year-round – buy a dehumidifier within your first week to prevent mold.
• US citizens must still file a federal return on worldwide income. Because Bermuda has no personal income tax, the Foreign Earned Income Exclusion is typically the primary tool for reducing your US bill, though some taxpayers may also claim foreign tax credits on creditable taxes paid elsewhere. FBAR and FATCA reporting apply once you open local accounts

Visas and work permits for Bermuda

Bermuda does not issue long-term residence visas the way most countries do. If you are relocating to Bermuda, your path runs through an employer, not an embassy.

US citizens can enter without a visa for tourist stays of up to 90 days, with extensions to 180 days possible through the Department of Immigration. Visitors cannot work during that time – not even unpaid consulting or remote freelancing for a non-Bermudian client.

Standard work permits

To move permanently, you need a job offer from a Bermudian employer. The employer applies to the Department of Immigration on your behalf. The process includes:

• Mandatory local advertising in a newspaper and on the government job board.
• Proof that no qualified Bermudian candidate was available.
• A signed employment contract submitted with the application.
• Council approval for regulated professions like healthcare, law, and accounting.

A one-year Standard Work Permit costs $1,015, scaling up to $6,510 for a five-year permit. A one-year Global or New Business Work Permit costs $1,955, scaling up to $7,460 for five years. Employers typically cover this cost, but confirm before accepting an offer.

Work From Bermuda Certificate – discontinued

The Work From Bermuda Certificate – a Bermuda digital nomad visa that allowed remote workers to stay for up to one year – was discontinued in February 2025. As of mid-2026, there is no remote-work visa. If you work remotely for a US employer, you would need a standard work permit or to stay within the tourist entry limit.

If you are still deciding where to relocate, TFX has a guide to low-tax countries for US expats that compares options.

For the broader process, read our guide to becoming an expat and use the moving-abroad checklist to organize documents and tax records before you leave.

The practicalities of island living: commuting and housing

Daily life in Bermuda comes down to two things: getting around a 21-square-mile island with strict vehicle limits, and paying imported-goods prices for nearly everything.

Transportation and the one car per household rule

Bermuda enforces a strict one car per household rule. Vehicles are limited in size, there are no rental car companies, and the import duty on a new car can exceed 100% of the purchase price.

Most expats buy second-hand scooters for $1,500–$2,500 through the local classified site Emoo.bm. Buying a scooter in Bermuda is one of the first things new arrivals do. It works well most of the year, though winter rain makes commuting less comfortable from December through March.

The Bermuda cost of living

Housing is the biggest line item:

• Shared housing: $1,500+ per room per month.
• One-bedroom apartment: $3,000–$5,000+ per month, depending on location.
• Groceries: Two to three times continental US prices – nearly everything is imported.
• Import duties: No sales tax or VAT, but heavy customs duties on goods function as a consumption tax.

The federal moving expense deduction remains suspended through tax year 2025 for most taxpayers. An exception applies to certain active-duty members of the US Armed Forces who move under military orders because of a permanent change of station.

If your employer offers a relocation package, clarify which costs are reimbursed and whether the reimbursement counts as taxable income.

Bermuda requires most work permit holders to carry health insurance, and the local system is expensive. Confirm coverage before you arrive.

Your FEIE and FTC elections carry long-term consequences. Get them right.

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Subtropical climate and the “dehumidifier rule”

Bermuda sits in the Gulf Stream, which keeps temperatures moderate but drives constant humidity.

• Summer: Averages around 27 °C, rarely exceeds 30 °C.
• Winter: Mild but wet and windy, ranging from 10 °C to 18 °C.
• Hurricane season: June through November, with the highest risk in August and September.

The practical advice every Bermuda expat gives: buy a dehumidifier immediately. Humidity can ruin clothing, leather, and electronics within weeks. Mold is a constant issue, especially in closets and storage areas.

The island’s building code requires concrete-and-limestone construction for wind protection, but plans for power outages during storms.

Lifestyle, local culture, and etiquette

Living in Bermuda as an American means adjusting to a smaller, more formal community. Bermuda is famously polite – greeting people with “Good morning,” “Good afternoon,” or “Good evening” is expected. Skipping the greeting is considered a serious faux pas.

Social life and traditions

Beach culture is central to island life. Weekend boat parties – locally called “booze cruises” – are a common warm-weather activity. The biggest annual event is Cup Match Weekend, a two-day public holiday in late July or early August built around a cricket match between Somerset and St. George’s. It is part sporting event, part island-wide celebration.

Work-life balance

The professional busy season runs from roughly October through April, when international business activity peaks. Summers are quieter, giving expats time outdoors. Moving to Bermuda as an American means joining a community where professional and social circles overlap heavily – reputation matters, and being a reliable neighbor goes a long way.

Tax implications for expats in Bermuda

Bermuda has no personal income tax. But for US citizens, that does not mean tax-free.

Bermuda payroll tax and social insurance

Bermuda funds its government through payroll tax, customs duties, and fees. The employee share of Bermuda payroll tax is progressive across five remuneration bands. For the April 1, 2025–March 31, 2026 payroll tax year, the rates are:

• 0.50% on the first $48,000
• 9.25% on the next $48,000
• 10.00% on the next $104,000
• 11.50% on the next $300,000
• 12.50% on the next $500,000

Taxable remuneration is capped at $1 million. You will also contribute $37.65 per week in mandatory Social Insurance contributions (half of the $75.30 combined weekly rate in effect since August 2025), with your employer paying a matching $37.65.

These are payroll-based deductions, not income taxes – and that distinction matters for your US return.

US expat tax obligations

US citizens must file a federal return on worldwide income regardless of where they live. The IRS does not grant an exemption for living in a tax-free jurisdiction.

Because Bermuda does not impose a personal income tax, most US expats in Bermuda will have little foreign income tax available to claim as a Foreign Tax Credit. As a result, the Foreign Earned Income Exclusion is often the primary tool, although some taxpayers may also qualify for credits on taxes paid to another country:

• Tax year 2025: Exclude up to the lesser of your qualifying foreign earned income or the IRS-published Foreign Earned Income Exclusion amount for TY2025 ($130,000). If you qualify for only part of the year, the maximum exclusion is prorated based on your qualifying days.
• Tax year 2026: The exclusion rises to $132,900 per qualifying person.
• Qualification: Meet either the Physical Presence Test – 330 full days outside the US in a 12-month period – or the Bona Fide Residence Test.

If you qualify under the Physical Presence Test, days spent in the United States generally reduce your qualifying days, so keep a detailed travel log. Different rules apply if you qualify under the Bona Fide Residence Test.

For additional strategies, TFX covers how US expats in low-tax countries can reduce their US tax bill.

Bermuda FBAR and FATCA reporting

Once you open a Bermuda bank account, you may trigger reporting obligations:

• FBAR: Required if the combined value of your foreign accounts exceeds $10,000 at any point during the year. Filed electronically through the BSA E-Filing System.
• FATCA: Form 8938 applies at higher thresholds and is filed with your return. Filing one does not replace the other.

Because Bermuda’s payroll tax is generally structured as a payroll-based levy rather than a traditional income tax, many US taxpayers cannot claim it as a foreign tax credit. Whether any foreign levy is creditable depends on the US foreign tax credit rules and the taxpayer’s specific facts, so many US taxpayers in Bermuda rely primarily on the Foreign Earned Income Exclusion if they qualify.

Plan your Bermuda relocation with TFX

Bermuda’s zero-income-tax structure simplifies your local obligations but makes your US return more complex. With little or no foreign income tax to offset your US liability, accurate FEIE qualification can be the difference between owing thousands and owing nothing.

TFX specializes in helping US expats in no-tax jurisdictions file accurate, compliant returns.

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