Bermuda Digital Nomad Certificate: 1 Year of 0% Tax in the Atlantic

Bermuda launched the Work From Bermuda Certificate in 2020, allowing remote workers to live on the island for up to one year while paying zero Bermuda income tax. Bermuda has never had an income tax — there is no rate, no filing, no reporting.

For the Tax Hacker earning six figures remotely, Bermuda offers something no other digital nomad visa does: a jurisdiction with no income tax, world-class infrastructure, and direct flights to New York and London.

The Requirements

• Employment with a company outside of Bermuda or self-employed serving foreign clients
• Valid health insurance covering Bermuda
• Clean criminal record
• Application fee: $263 USD
• Valid for 1 year, renewable for an additional year

There is no minimum income requirement. Bermuda trusts that if you can afford to live there, you qualify.

The Cost Reality

Bermuda is one of the most expensive places on Earth:

• One-bedroom apartment: $2,500-4,000/month
• Groceries: $800-1,200/month
• Health insurance: $400-800/month
• Total: $5,000-7,500/month

The math works at $200k+ annual income. Below that, the cost of living erodes the tax savings.

The Infrastructure Advantage

• Internet: Bermuda has fiber broadband across the island. Speeds of 100-500 Mbps are standard.
• Flights: Direct flights to New York (2 hours), Miami (2.5 hours), London (7 hours), and Toronto (3 hours).
• Banking: HSBC Bermuda, Butterfield Bank, and Clarien Bank provide full international banking services.
• Safety: Bermuda is one of the safest jurisdictions in the world.

The Tax Trap for US Citizens

Bermuda’s zero-tax environment does not eliminate US tax obligations. If you are a US citizen, you still owe the IRS on worldwide income. However, the Foreign Earned Income Exclusion (FEIE) allows you to exclude up to $126,500 (2024) from US taxation if you meet the physical presence test (330 days outside the US in a 12-month period).

For income above the FEIE threshold, the Foreign Housing Exclusion allows additional deductions for Bermuda’s high housing costs, further reducing your US tax bill.