This is a guide to provide general information to anyone considering purchasing residential property in Bermuda. We do recommend that legal advice is sought before entering into any agreements concerning the acquisition of property on the island.
As the islands of Bermuda are restricted in size, the majority of housing and undeveloped residential land is retained for the ownership of Bermudians. at present, the total area of land in Bermuda that can be owned by Restricted Persons (non-Bermudian), is limited to 2,500 acres.
INTERNATIONAL PURCHASERS
If someone wishing to purchase real estate in Bermuda is not ordinarily resident, an application must be submitted to the Minister of Labour and Home Affairs through a local law firm. License fees, until 31 March 2019, are 8% of the purchase price of a house, 4% for PRC, and 6% for the purchase of a condominium. A Residential Certificate may be granted, and will give the bearer the right to live in Bermuda and to enter and leave the island at their leisure. Non-Bermudians may only purchase property that is qualified by a minimum Annual Rental Value ("ARV") of $126,000 for a freehold house and $25,800 for a condominium. Every Bermuda residence is given an ARV to determine land tax. This assessment value does not indicate what the residence would fetch on the open rental market. The ARV assessments are reviewed every 5 years. The sale price for a house that qualifies ranges from around $3,500,000 - $45,000,000 and for a condominium $575,000 - $5,500,000.
LICENSE TO ACQUIRE REAL ESTATE & BERMUDA GOVERNMENT LICENSE FEES
Non-Bermudian purchasers are required to submit an application for a license to purchase from the Bermuda Government Ministry of Labour & Home Affairs (Department of Immigration). The process of which can take anywhere between 4 - 9 months.
LICENSING AND FEES
Non-Bermudian purchasers must obtain a license from the Minister of Home Affairs;
PRC HOLDERS
PRC holders are not eligible to purchase vacant land, or properties with no ARV – this is not to be confused with a ZERO “0” ARV. This could be an old uninhabited house, or even stables or sheds, but there is an ARV attached to the property.
This is also valid in the case of investment properties, or properties which are intended to earn rental income. International buyers will benefit from the experience of our agency to help guide them through the complicated steps involved to purchase residential real estate in this exclusive property market. There are possibilities of non-Bermudian buyers purchasing in certain designated condominium developments as well as specific tourist accommodations and fractional ownerships. Lists of such properties can be provided upon request, and the unit must be assigned by Government as eligible the Bermuda Immigration and Protection Act. If a tourist accommodation is purchased, it may only be occupied by the particular license holder or family, or guests who will be staying with the license holder. If there is a management company involved with the tourist accommodation, paying short-term occupants may also be accommodated.
