Bermuda Summary

Bermuda is the offshore domicile of many foreign companies, with a highly developed economy focused on international business and tourism. Its per capita income is approximately 50% higher than in the United States. CIA data shows a GDP of $4.5 billion in 2004, per capita, $69,900. Based on 2004 data, Bermuda has the highest GDP per capita in the world. Bermuda is regarded as a premier offshore business jurisdiction, with no direct taxes on personal or corporate income. The local tax system is based upon import duties, and payroll and consumption taxes. Many leading international insurance companies are based in Bermuda and the island is considered the world's re-insurance centre. Bermuda is a financial exporter both in insurance and other financial services. Bermuda is also one of the largest reinsurance markets in the world. Tourism is the second largest industry, with the island attracting most of its visitors from the United States, Canada and the United Kingdom.

Bermuda is the Leader in Re-Insurance

Every International Offshore Financial Centre has developed its own specialisations, and in Bermuda's case it is insurance that stands out; mutual fund management is also strong, assisted by the existence of the Bermuda Stock Exchange

There has also been strong development in the trust management sector, fed particularly by an exodus of assets from Hong Kong when the territory reverted to Chinese rule.

International banks were conspicuous by their absence due to the Government's policy of excluding non-domestic banks; then HSBC was allowed to buy the Bank of Bermuda in 2003. However local banks provide adequate services, and there has been a substantial development of 'fringe' financing activities along with securities trading, and most recently a surge in Internet financial services.