Bermuda's economic substance legislation has become operative, in a bid to address concerns raised by the EU Council’s Code Group, according to offshore law firm Appleby.

Following the Code Group’s assessment, Bermuda was named in a list of jurisdictions which are required to address concerns about ‘economic substance’.

Just as in the BVI, Cayman Islands, Guernsey, and Jersey, the government of Bermuda has been working with the Code Group to do this.  

As a result, the Economic Substance Act 2018 and the Economic Substance Regulations 2018 came into force on 31 December 2018. However, there is a s...