Bermuda - Executive SummaryBermuda - Executive Summary
Bermuda is a British Island territory located in the North Atlantic Ocean. The government of Bermuda (GOB) welcomes foreign direct investment (FDI). Bermuda’s economy is almost wholly dependent on FDI in the insurance, reinsurance, and financial services sectors – with a small contribution from the tourist sector. In 2014, the latest date for which data is available, these international businesses contributed the most to total GDP at 27.1 percent, compared to tourism’s roughly 5 percent.
Bermuda is slowly coming out of more than six straight years of economic recession. Bermuda’s real gross domestic product increased for the fourth consecutive quarter in Q3 2015, a 4.4% increase over the same period in 2014 after adjusting for inflation of 1.8%. The primary driver was a $53 million gain in the surplus on trade in goods and services, primarily from household consumption, which increased 3.8%. However, job losses and business closures continue to affect the overall economy.
Bermuda's investment climate presents a series of advantages for potential investors. These include:
• a stable, democratic government;
• low personal and corporate taxes;
• a pool of skilled professionals;
• proximity to the United States, and extensive air and communication networks;
• a stable currency, the Bermuda dollar (BMD), pegged at par to the USD.
As a British Overseas Territory, Bermuda’s legal system is grounded in UK common law. Its legal, regulatory and accounting systems adhere to high ethical and transparency standards. It generally effectively and impartially enforces its laws to combat corruption and money laundering. There is no government interference in the court system that could affect foreign investors.
Bermuda law recognizes and enforces secured interests in real property. The GOB’s policies facilitate the free flow of financial resources in the product and factor markets, and the U.S. Securities and Exchange Commission recognizes the Bermuda Stock Exchange (BSX) as a Designated Offshore Securities Market. There is a general awareness of responsible business conduct among both producers and consumers.
Table 1
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Bermuda is slowly coming out of more than six straight years of economic recession. Bermuda’s real gross domestic product increased for the fourth consecutive quarter in Q3 2015, a 4.4% increase over the same period in 2014 after adjusting for inflation of 1.8%. The primary driver was a $53 million gain in the surplus on trade in goods and services, primarily from household consumption, which increased 3.8%. However, job losses and business closures continue to affect the overall economy.
Bermuda's investment climate presents a series of advantages for potential investors. These include:
• a stable, democratic government;
• low personal and corporate taxes;
• a pool of skilled professionals;
• proximity to the United States, and extensive air and communication networks;
• a stable currency, the Bermuda dollar (BMD), pegged at par to the USD.
As a British Overseas Territory, Bermuda’s legal system is grounded in UK common law. Its legal, regulatory and accounting systems adhere to high ethical and transparency standards. It generally effectively and impartially enforces its laws to combat corruption and money laundering. There is no government interference in the court system that could affect foreign investors.
Bermuda law recognizes and enforces secured interests in real property. The GOB’s policies facilitate the free flow of financial resources in the product and factor markets, and the U.S. Securities and Exchange Commission recognizes the Bermuda Stock Exchange (BSX) as a Designated Offshore Securities Market. There is a general awareness of responsible business conduct among both producers and consumers.
Table 1
| Measure | Year | Index or Rank | Website Address |
| TI Corruption Perceptions index | 2014 | n/a | transparency.org/cpi2014/results |
| World Bank’s Doing Business Report “Ease of Doing Business” | 2015 | n/a | doingbusiness.org/rankings |
| Global Innovation Index | 2015 | n/a | globalinnovationindex.org/content/page/data-analysis |
| U.S. FDI in partner country ($M USD, stock positions) | 2014 | 273,792 | BEA |
| World Bank GNI per capita | 2013 | 106,140 | data.worldbank.org/indicator/NY.GNP.PCAP.CD |
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.