Exempted partnerships are designated non-resident for exchange control purposes. The non-resident designation allows such partnerships to operate free of exchange control regulations and enables them to make payments, distributions, to open and maintain foreign bank accounts and to purchase foreign currency and securities, etc. without reference to the exchange control authorities. At the date of this memorandum, there is no Bermuda income tax, profits tax, withholding tax, capital gains tax or capital transfer tax payable by individuals. There is also a customs duty levelled on imports at variable rates. There is a land tax on a sliding scale payable annually.
Stamp duty is also payable on conveyances including transfer of property from an estate.
Trusts Stamp duty is payable on the establishment of a Bermuda trust or any Bermuda property settled on trust. Non-Bermuda property is exempt from stamp duty. Such property includes foreign realty, foreign currency and foreign issued securities whether or not held in Bermuda, and securities in Bermuda exempted companies. There is an exemption from stamp duty for a trust made for the benefit of any object which the Minister of Finance is satisfied is charitable. Capital gains and income accruing to a trust fund, and distributions of trust property, are not subject to Bermuda duty or taxation in any form except normal stamp duty on documents of appointment for Bermuda property.