Bermuda -- Cryptocurrency Tax Framework Regulatory Overview

Bermuda does not impose capital gains tax, income tax, VAT/GST, or other taxes on cryptocurrencies/virtual assets or transactions involving them for individuals or businesses, except for a new corporate income tax regime effective from January 1, 2025, that applies only to multinational enterprises with annual revenue exceeding €750 million at a 15% rate.[2][3][4]

Key Tax Treatments

• Capital Gains Tax: None levied on digital assets.[2][3][4]
• Income Tax on Crypto: No income tax on digital assets or related transactions; the 2025 corporate regime overrides prior tax undertakings but targets only large multinationals.[3][4]
• VAT/GST: No VAT or GST applies to cryptocurrencies.[2][3][4]
• Foreign Currency Purchase Tax: A 1% tax applies to purchases of foreign currency from Bermuda-based banks by residents, but this does not cover crypto purchases, which occur via exchanges.[4]

Reporting Requirements

No specific tax reporting is required for crypto holdings, gains, or transactions due to the absence of relevant taxes.[2][3][4] General business reporting under licensing regimes may apply (see below).

Crypto-Specific Legislation

Bermuda regulates digital asset businesses rather than taxing them:

• Digital Asset Business Act (DAB Act, 2018): Requires licensing from the Bermuda Monetary Authority (BMA) for activities like issuing/selling digital assets, operating exchanges, custodial wallets, or payment services using digital assets. Licensed entities must segregate client assets, maintain bonds/insurance, and comply with cybersecurity/prudential rules.[2][3]
• Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 (ICO Act): Mandates company registration with the Registrar of Companies for ICOs conducted in or from Bermuda.[2][3] Exempted companies in digital assets can seek undertakings from the Minister of Finance exempting them from future profit/income or capital gains taxes (though overridden by the 2025 regime for large MNEs).[4]

For authoritative guidance, consult the Bermuda Monetary Authority (BMA) or a local tax professional, as no direct tax authority pages on crypto taxation appear in results.[1][2][3][4]