Bermuda signs tax agreement with Spain

By added on 05/10/2009

Bermuda's Minister of Finance the Hon. Paula A. Cox signed a bilateral agreement with Spain at the end of last week.


A significant benefit accrued by the TIEA is that any Spanish corporation investing 5% or more in a Bermuda entity shall be exempt from Spain's 30% corporate tax rate on income such Spanish corporation receives from its investment in Bermuda, provided its investment in the Bermuda entity has been for more than one year.


The agreement provides a major incentive to Spanish companies establishing Bermuda captive insurance companies and investment vehicles, thus boosting international business in Bermuda and the associated income such business that generates in the Bermuda economy.


Bradley Kading, President and Executive Director of the Association of Business Insurers and Reinsurers (ABIR), praised today's development: "The Ministry has done an excellent job in demonstrating Bermuda's commitment to the OECD and G 20 international tax compliance standard. Bermuda's insurers in ABIR's membership write approximately 11% of the broker placed reinsurance for Spanish insurers.


“Spain has been a growing market in Europe and Spain is home to one of the world's largest reinsurance corporations. It's a natural place for Bermuda's insurers to do additional business in the future."


Currently, Bermuda has fifteen signed tax information exchange agreements (TIEAs), substantially demonstrating Bermuda's commitment to implement the internationally agreed tax standard.