Bermudian status — Bermuda does not have its own nationality law. Bermudians are British Overseas Territories citizens by default, which is the island's de facto citizenship. Bermudian status can be obtained:
By birth — Although it is possible to be born Bermudian, simply being born in Bermuda does not automatically confer this status. One must be born in Bermuda to a parent who holds Bermudian status, in order to be considered Bermudian by birth.
Through residence — A subset of permanent residents, who have been living on the island since 1989, can apply for Bermudian status if they are Commonwealth citizens.
Spouse of a Bermudian — This status confers many of the rights of a Bermudian but does not itself bring status rights. People with this status eventually become Bermudian in their own right after ten years. However the status is lost if the marriage itself breaks down.
Permanent resident — Immigration law reform in 1998 severely restricted the ability of new persons to come to Bermuda and obtain Bermudian status. Persons without status residing on the island since 1989 became eligible for permanent residence certificates, which allowed them to stay and work on the island indefinitely, but without the right to vote, subject to a high landowning tax and without the right to own local businesses. Their spouses and relatives remain eligible to obtain permanent residence certificates. Such people are known locally as "PRCs".
Guest worker — Persons with work permits may work and reside on the island with their spouses and minor children for the term of their permit. Permits are tied to a specific employer and job, and that job generally must be offered to Bermudians, spouses or PRCs before a work permit will be issued. Their spouses and children may not work without themselves obtaining a work permit. Work permits can be renewed. There is no provision in the law for work permit holders or their family to acquire any permanent residence or citizenship rights over time.
Property owner — A person who owns property under a licence does not thereby acquire any citizenship rights. However such people are entitled to reside in Bermuda.
Company Law
Two types of company can be incorporated in Bermuda:
a local company, which is owned 60% or more by Bermudians; and
an exempt company, which is owned chiefly by non-Bermudians
As a matter of broad principle :
* only a local company may trade in Bermuda ;
* only local companies are expected to contribute to the local economy through taxation.
* exempt companies may have a physical presence in, and employ staff in, Bermuda.
* in other cases with the permission of the minister, strictly limited by policy.
Bermuda real estate cannot be vested in a non-Bermudian, nor in a trust which may benefit a non-Bermudian, unless a licence is obtained on behalf of the non-Bermudian. The fee for the licence is a substantial percentage of the market value of the real estate.
With some limited exceptions, only real estate in the hands of non-Bermudians is available for sale to non-Bermudians.
It is common for Bermuda real estate to be owned by trusts.
Trust Law
It is illegal to act as a trustee, as a business, without a licence. Generally, licences are only granted to corporations, so almost all professional trustees are trust companies. A professional person may act as a trustee if he or she has a connection with a licensed trust company, and delegates certain functions to that trust company.
Unpaid private trustees are fairly common, although usually only for domestic trusts.
The residence of a trust follows the residence of its trustees. A trust is therefore only Bermuda resident if a majority of its trustees are Bermuda resident.
Generally, Bermuda tax law is generous in its treatment of non-Bermuda assets, which include foreign currencies even where held at Bermuda banks. There is usually no tax charge in Bermuda on settling non-Bermuda assets into trusts, nor on the income those assets produce, nor on their sale, nor on their distribution to beneficiaries. Like the other offshore financial centers this has led to the use of Bermuda trusts by settlors and beneficiaries from higher-tax jurisdictions.
By contrast, Bermuda assets are generally charged to ad valorem Stamp Duty upon being settled into trust.
Bermuda recognises the concept of non-charitable purpose trusts.
Domestic trusts are very common, due to the stamp duty legislation, which imposes a tax of up to 15% of the value of Bermuda-assets in an estate on death, but does not tax an interest in a discretionary trust.
Litigation and the Bermuda Court System
Together with a number of tribunals, Bermuda has a three-tier court system:
Magistrates Court, with a mainly criminal jurisdiction;
Supreme Court, with a civil and criminal jurisdiction, covers the roles of the English Crown Court, County Court and High Court.
