Bermuda is a unique blend of natural beauty and economic success, featuring a sub-tropical climate made mild by the Gulf Stream. Its fertile soil supports vibrant flora, contributing to the island's picturesque landscape. Bermuda's economic achievements have cultivated a highly educated workforce and a sophisticated support infrastructure, transforming it from a quaint holiday destination to a bustling hub for international business. With a history dating back to 1609 and the oldest Parliament in the Commonwealth outside the UK, Bermuda maintains strong ties to Britain, which influences its legal system. Proximity to the US and direct flights to London enhance its accessibility and appeal for business and leisure travelers alike. 

BUYING PROPERTY 

The limited geographical size of Bermuda underscores the need to reserve most housing and undeveloped residential land for Bermudians. However, the government allows non-Bermudians to purchase high-value properties and those linked to hotel developments for private residential use. 

LICENCE TO BUY PROPERTY 

Non-Bermudians must obtain a licence from the Immigration Minister, providing references and demonstrating that Bermudians had a fair chance to purchase the property. Licences include conditions on private use, development limitations, and property rental or sale restrictions, with specific conditions for holding multiple properties.

LICENCE FEE 

The licence fee structure varies by property type and includes rates for freehold houses, leasehold apartments, tourist accommodations, and other land types, reflecting the government's effort to regulate property acquisition by non-Bermudians. 

PURCHASING A HOUSE 

Non-Bermudians can purchase houses with a minimum Annual Rental Value, with restrictions on multi-unit dwellings and the number of properties one can hold. 

PURCHASING APARTMENTS OR CONDOMINIUMS 

Certain non-Bermudians, including those with a Bermuda "nexus" or permanent residency, can purchase apartments or condominiums, subject to minimum ARV requirements. 

BUYING TOURIST ACCOMMODATION OR HOTEL RESIDENCES 

Non-Bermudians may buy hotel residences or tourist accommodations, with specific conditions for private use or inclusion in the hotel inventory. 

BUYING UNDEVELOPED LAND 

The sale of undeveloped residential land to non-Bermudians is generally restricted, with some exceptions for those with a Bermudian nexus. 

LETTING PROPERTY 

Non-Bermudian property owners need ministerial permission to rent their properties, with specific guidelines for tourist accommodations. 

BUYING PROPERTY BY WAY OF INHERITANCE, VOLUNTARY CONVEYANCE, ETC. 

Licences to hold real estate through inheritance or other means are limited, with special rules for non-Bermudian spouses or children of Bermudians. 

TAXES 

Bermuda offers a tax-friendly environment, with no income or capital gains taxes, though Land Tax and ad valorem stamp duty apply to property transactions. 

CONCLUSION 

This guide provides an overview of property acquisition in Bermuda. For detailed advice, contact our our colleagues in Bermuda. This publication is for informational purposes and should not be be taken as legal advice.

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FOOTNOTE

This guide is designed to assist anyone interested in purchasing residential property in Bermuda. It broadly outlines Bermuda law requirements and, where relevant, the Bermuda Government's policies. This guide aims to provide general information to our clients and their professional advisers and is not exhaustive. Specifically, it does not cover acquisitions by non-Bermudians married to Bermudians, non-Bermudians buying property for their Bermudian children or grandchildren, or corporate acquisitions, each of which is subject to unique regulations. We advise our clients to consult with a legal professional in Bermuda for advice on their specific plans before proceeding.