Aquisition of Property in Bermuda by Overseas Purchasers
The Bermuda Government restricts the number of homes and condominiums that are available for purchase by non-Bermudians in order to protect opportunities for Bermudians to invest in real estate on the Island.
BERMUDA GOVERNMENT POLICY ON THE ACQUISITION OF PROPERTY BY OVERSEAS PURCHASERS
Availability of houses and condos to overseas purchasers is strictly limited by the Bermuda Government and a purchase tax is payable on any sales.
POLICY ON UNDEVELOPED LAND
There is an absolute prohibition on the sale of undeveloped land to unqualified Non Bermudians.
Qualified Non Bermudians can acquire undeveloped land. Qualified Non Bermudians are defined as Non Bermudian spouses of Bermudians and Non Bermudian children of Bermudians.
Policy on Commercial Property
Non Bermudians are only permitted to own hotel properties of more than 50 beds or up to 40% of a local company or commercial property.
Policy on Private Homes
Only homes currently owned by non-Bermudians are permitted to be sold to overseas purchasers. Overseas purchasers are able to buy homes that have a current Annual Rental Value (ARV) of $153,000 or higher. The ARV is the number used in the calculation of land tax.
There are very few homes available in this category and prices start at approximately US$4 million.
Policy on Condominiums
Only condominiums currently owned by non-Bermudians are permitted to be sold to overseas purchasers. Overseas purchasers are only permitted to purchase Condos in developments designated as being available to Non Bermudians. These condominiums must have an ARV of $32,400 or more. Condominium prices usually begin around US$1 million.
Costs associated with purchase
Non-Bermudians wishing to acquire real estate in Bermuda are required to obtain a license from the Ministry of Labour and Home Affairs. Applications for a license should be made through a local attorney. The application fee for all licenses is approximately $1,097 which is refundable if the application is successful.
This is payable when the application form is submitted. Once approval has been given, the fee for the grant of a license is 25% of the purchase price for a house or 18% of the purchase price for a condominium. There is presently no license fee for the purchase of hotels or shares in local companies or commercial property.
It is usual in Bermuda for the costs of the agreement as well as the preparation of conveyance and the stamp duty to be equally shared between Vendor and Purchaser. The stamp duty, is calculated based on the purchase price as follows:
- First $100,000 is at 2%
- Next $400,000 is at 3%
- Next $500,000 is at 4%
- Next $500,000 ($1,000,000 but not exceeding $1,500,000) is at 6%
- Thereafter.................7%
If you would like to view the Policy in full, please click on the following link:
http://www.immigration.bdagov.bm/landacquisition/acquisitionframe.html
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