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All business between Bermuda and the governments of other countries are handled by Britain.The Bermuda Government controls, manages and overseas all aspects of Bermuda in Bermuda except for defence, foreign affairs and internal security which come under the remit of the British Governor.

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It is the smallest in size but economically the most advanced, prosperous and populated per square mile as well as the oldest of all the fourteen British Overseas Territories (BOTs, see below).In Britain, the Queen reads the speech and in British Commonwealth countries, Governors or Governors General do.His Excellency the Governor has his own Flag of Office.As a BOT, Her Majesty the Queen is Bermuda's official Head of State. which costs the Bermuda taxpayers $2 million a year.The Governor and Commander-in-Chief of Bermuda (see next paragraph) is appointed by The Queen (on the advice of the British Government in London) after consultation with the Premier of Bermuda. It is for the upkeep of Government House and its 30-plus pristine acres and for the Governor and Deputy Governor's (both from Britain) salary and their cars, their security, their travel, their housekeepers, their domestic staff and their accommodation.Many Americans visiting Bermuda assume, wrongly, that British-UK laws apply. Bermuda laws do and in significant ways are much more restrictive to non-nationals than any British, USA, Canadian, Caribbean, Australian, New Zealand and other democratic country laws.

Only in external affairs, some aspects of the judiciary, some areas of defence and some areas of the police is Bermuda subject to UK oversight.

This means that even people born and bred in the United Kingdom of Great Britain and Northern Ireland, Bermuda's mother-country based on the nationality of its first colonists, are not free to come and go as they wish, if and when they come here do not have citizenship, generally cannot vote, need work permits like any other nationality if they are qualified to come to work and are never guaranteed continued employment even with work permits if Bermudians becomes qualified and are deemed able to take over their jobs.

The Bermuda Government alone has the right to control the admission and expulsion of people from both Britain and anywhere else in the world.

However, under British-UK law, so long as Bermuda remains a British Overseas Territory, Bermudians can, on application, obtain automatic British-UK citizenship and passports and can come and go as they please between Bermuda and the United Kingdom.

As a dependent territory of Britain, all dealings on behalf of Bermuda with Westminster in London are officially managed by Government House, where the Governor lives.

It was the UK Government that approved that Bermudians could have, on application, a UK passport and be treated as full UK nationals in every other way, but that Britons in Bermuda who are not also Bermudian would not have reciprocal rights.