When you use Bermuda like that, you pay various fees to do so (registration fees, banking fees), and money ultimately goes into the national budget from that. T

When you use Bermuda like that, you pay various fees to do so (registration fees, banking fees), and money ultimately goes into the national budget from that. The state then invests in infrastructure and some job creation from that national budget. Similarly, when Caribbean nations sell citizenship to foreigners seeking easier travel or tax optimization (another avenue they have explored into order to diversify their economies), the foreigner typically pays a fee in the tens or hundreds of thousands of dollars for the passport, and that goes into the national budget.