Bermuda: The Best Tax Haven That Outshines Them All

At Invest Offshore, we’ve long studied the world’s premier tax havens — from the palm-lined shores of the Cayman Islands to the sophisticated vaults of Luxembourg. But if there’s one jurisdiction that has consistently stood at the pinnacle of global tax efficiency, it’s Bermuda.

The island’s reputation as a zero-income tax jurisdiction has attracted the most sophisticated players in global finance, tech, and insurance. One of the most eye-catching examples came in 2017, when Google (Alphabet Inc.) famously moved €19.9 billion ($22.7 billion) through a Dutch shell company to Bermuda, according to filings at the Dutch Chamber of Commerce. This transfer was part of the widely known but highly complex “Double Irish, Dutch Sandwich” tax strategy — a legal maneuver designed to minimize global tax burdens by routing international revenues through Ireland and the Netherlands and ultimately parking the profits in Bermuda.

Here’s how it worked:

• Google’s Dutch subsidiary funneled royalty payments from profits earned outside the U.S. to Google Ireland Holdings, an affiliate registered in Bermuda.
• Bermuda, known for zero corporate income tax, allowed these earnings to accumulate without triggering U.S. taxes or European withholding taxes.
• The result? Billions in overseas profits shielded from higher-tax jurisdictions, giving Google an edge in global competitiveness.

While the European Union and U.S. tax authorities applied growing pressure on such tax structures, leading Ireland to begin phasing out the “Double Irish” in 2014 (with full closure by 2020), Bermuda remains untouched and resilient as the star of the offshore tax world.

Why Bermuda Still Shines

Bermuda’s allure goes far beyond just Google. Many multinational corporations, hedge funds, reinsurers, and wealthy individuals use Bermuda for its:
✅ Zero corporate income tax, capital gains tax, or withholding tax
✅ Well-established legal and regulatory framework respected internationally
✅ Political stability under the stewardship of figures like Prime Minister Mark Carney, whose background as a former Bank of Canada and Bank of England governor brings heavyweight financial credibility to the island
✅ Strong reputation in insurance and reinsurance, making it a global hub for the risk and finance industries
✅ Proximity to both the U.S. and Europe, providing time zone advantages and connectivity

Carney’s Influence: A Prime Minister with Global Banking Clout

Prime Minister Mark Carney’s leadership has only strengthened Bermuda’s image as a smart, stable, and sophisticated offshore jurisdiction. With deep experience in international monetary policy, Carney has signaled that Bermuda isn’t just a sunny escape but a serious financial player capable of offering investors and corporations alike a credible and compliant offshore home.

Looking Ahead

While global tax reform discussions continue under frameworks like the OECD’s Base Erosion and Profit Shifting (BEPS) project, Bermuda remains a well-positioned, flexible jurisdiction. Its ability to attract not just blue-chip corporations like Google but also institutional investors, family offices, and international fund managers ensures its continuing relevance.

Even as legacy strategies like the Double Irish, Dutch Sandwich wind down, Bermuda’s fundamental advantages — no corporate income tax, a stable and sophisticated regulatory environment, and its global connectivity — keep it at the top of the offshore investment world.

For high-net-worth individuals, multinational companies, and offshore funds looking for an optimal tax-friendly base, Bermuda remains the gold standard.

At Invest Offshore, we continue to track the best opportunities and structures in Bermuda, helping investors align with compliant, cutting-edge strategies. Get in touch with us to explore how Bermuda can serve as your next offshore move.