Bermuda
Bermuda is a world-class offshore financial center, known for its zero-tax regime, strong legal framework, and sophisticated fiduciary services sector. As a British Overseas Territory, Bermuda provides political and economic stability, making it an attractive jurisdiction for trusts, asset protection, and corporate structuring.
The island’s trust law is based on English common law, offering robust estate planning solutions with strong privacy protections. Bermuda’s private trust companies (PTCs) allow families to manage their own trust structures, while purpose trusts provide additional flexibility for businesses and philanthropic initiatives.
Advantages of Bermuda as a Fiduciary and Tax Jurisdiction:
Zero corporate tax, income tax, capital gains tax, inheritance tax, and wealth tax.
Strong trust laws, offering security and flexibility for estate planning.
Private trust companies (PTCs), enabling customized wealth management.
Reputable and well-regulated financial services sector, ensuring compliance with global standards.
Fast and efficient company incorporation, with minimal bureaucratic hurdles.
No exchange controls, facilitating international financial transactions.
Potential Considerations:
Higher operational costs, as Bermuda’s professional services and cost of living are expensive.
Substance requirements for certain businesses, necessitating local presence.
Increased regulatory compliance, with AML and KYC requirements for fiduciary structures.
Limited tax treaty network, affecting international tax structuring options.
Bermuda’s combination of tax neutrality, strong trust laws, and regulatory credibility makes it a premier destination for fiduciary services. However, expert structuring and compliance planning are essential to fully leverage its advantages.