The number of exempted companies slid below 10,000 for the first time in at least six years during last year’s fourth quarter, government data released yesterday show.

The Quarterly Bulletin of Statistics revealed that there were 9,791 exempted companies on the register as of the end of 2025, a drop of 718, or 6.8 per cent from 12 months earlier.

Exempt company numbers had been steady at about 10,300 to 10,600 over the past five years.

While there is nothing in the data to suggest why the number of international businesses fell, the decrease coincided with the implementation of Bermuda’s corporate income tax last year.

The 15 per cent levy applies to the Bermuda profits of multinational groups with global revenues of more than €750 million (about $866 million).

The tax, which aligns with the Organisation for Economic Co-Operation and Development’s global minimum tax initiative, reduces the incentive for global corporations to channel profits through offshore subsidiaries that have no economic substance, such as employees or office space, on the island.

The number of local companies registered in Bermuda also fell by 9.2 per cent to 3,673, from 4,044 at the end of 2024.

In total, there were 15,215 companies and partnerships registered at the end of 2025.

The challenge of tackling the housing shortage was also highlighted by the report.

While 96 units of various sizes were added to Bermuda’s residential housing stock in 2025, this was offset by gross deductions of 104 units — meaning Bermuda ended the year with a net fall of eight residential units.

The data also showed Bermuda generated 6 per cent more employment income in 2025 than the year earlier. Employment income totalled $4.66 billion, up $263 million from 2024.

International business had an outsize impact, generating 40.3 per cent of the island’s employment income, while providing approximately 15 per cent of the island’s full-time jobs.

Employment income for the international business sector totalled $1.88 billion, up 6 per cent from $1.78 billion in 2024.

Public administration and defence saw the biggest increase in compensation paid — its total of $525.4 million was up from 12.6 per cent from the $466.5 million in the prior year.

Employment income in wholesale and retail industry edged 1.5 per cent higher to $256.5 million, while the banking, insurance and real estate sector recorded a rise of 3.4 per cent to $352.3 million.

Hotels and restaurants paid out $206.7 million to staff, up 6.5 per cent on 2024, while the construction industry saw an 8 per cent increase in employment income to $159.4 million.