Bermuda’s Premier: transparency, competitiveness and tax credits

Bermuda’s corporate income tax — that took effect on January 1, 2025 — represents one of the most significant shifts in the island’s modern financial history. But according to the Premier, this is not a departure from Bermuda’s principles; it’s a reinforcement of them.

Speaking exclusively to Bermuda:Re+ILS, Premier David Burt (pictured) said: “Corporate income tax wasn’t introduced to boost Bermuda’s revenue. We want to be known as a cooperative and transparent jurisdiction that complies with international standards.”

The tax, aligned with the Organisation for Economic Co-operation and Development’s (OECD) global minimum 15% effective rate, is part of Bermuda’s response to the international move toward a more harmonised framework. Bermuda joined that agreement in 2021, bringing its rules into force in 2023 ahead of implementation earlier this year.

The Premier emphasised that the regime would be designed not to burden business but to enhance competitiveness — particularly through the use of tax credits and incentives, which have become standard tools in other leading jurisdictions.

“There are many income tax regimes around the world where there are tax credits for persons who would want to invest inside the jurisdiction,” he explained. “We have to balance that. The global minimum tax framework is for a 15% minimum effective tax, and I do not believe that tax credits should be viewed as offsets. We are creating a new regime — and as many other regimes in the world have tax credits, we now have to put those things in place as well.”

In other words, Bermuda’s version of corporate tax will not be a blunt instrument. It will be calibrated to maintain the island’s edge as a hub for global re/insurers, life companies and alternative capital structures. Tax credits could encourage reinvestment, innovation and local value creation — while keeping effective tax rates compliant with global norms.

Transparency and trust

The introduction of corporate income tax marks a pivotal moment for Bermuda’s international reputation. The Premier’s message is that this new regime cements Bermuda’s status as a modern, compliant and trustworthy financial centre.

Bermuda’s strength, he said, lies in the quality of its regulation and the trust it commands globally. “We look forward to making sure that Bermuda remains the most efficient place to run an international insurance company, and we're going to do that by making sure we uphold regulatory excellence.”

The Premier reiterated a central theme of Bermuda’s success story: “Bermuda has always been about quality, not quantity.”

That approach has long made the island a partner of choice for global regulators. The Premier explained that Bermuda remains one of only two jurisdictions worldwide recognised as regulatorily equivalent with both the European Union and the United States — a rare dual endorsement that allows Bermuda-based re/insurers to operate seamlessly in key markets.

“Not all international financial centres are built the same,” he said. “Bermuda stands apart.”

Balancing global expectations with local advantage

While the global minimum tax is a framework, not a one-size-fits-all model, Bermuda intends to implement it in a way that preserves its unique ecosystem. That means balancing the expectations of the OECD and major economies with the competitive realities of the re/insurance industry — which remains the beating heart of Bermuda’s economy.

“Bermuda’s objective is to ensure that we are a well-regulated environment that stands up to international scrutiny but also delivers better results for consumers and businesses around the world,” the Premier said.

For Bermuda’s financial community, the signal is clear: the new tax regime is not a threat, but a structural evolution — one that aligns the island with the world’s standards while creating new tools to drive investment, innovation and long-term growth.

As global compliance tightens and transparency becomes a non-negotiable expectation, Bermuda’s approach — thoughtful, measured and grounded in partnership — could well become a model for how small jurisdictions adapt and thrive.

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