Joy Lusher Real Estate Ltd.
In order for Permanent Residence Certificate holders or International Purchasers to obtain property in Bermuda, they must make application for a License to Acquire from the Minister of Home Affairs at a cost of $1,416.00. The License must be applied to a specific property. Applications for a License must be made through a local attorney and may take up to 6 months to obtain approval. The License restricts property use to residential only; land may not be sub-divided and deriving income by renting the property is only permitted when the owner is off-island, and is subject to approval by the Ministry of Home Affairs for leases of longer than six months.
All sales to PRC Holders AND International Purchasers are subject to a License Fee, which varies depending on the category of property being purchased. Although the License Fee may seem onerous, it is one way the Bermuda Government can generate revenue.
Effective April, 2013 Government has reduced the property License Fees.
For PRC holders the fee on homes is now 4%.
For International Purchasers the fee on homes is 8%.
The License Fee is 6.5% if the residence is located within a Resort Development.
The License Fee for Condominium sales for PRC holders is reduced as of April 2013 to 4% and will increase to 6% on October 1, 2015. PRC holders may purchase any condominium with the exception of a Government Development.
The License Fee for International Purchasers Condominium sales within designated developments is reduced as of April 2013 to 6% and will increase to 8% on October 1, 2015. Condominium prices range anywhere from US$895,000.00 to US$4.5 million on up!
The License Fee for both categories is 6.5% if the condominium is located within a Resort Development.
Ownership of a fractional property provides a deeded interest in a residence within a resort development. Resort amenities may include tennis courts, swimming pools, private beaches, waterfront, golf courses and private clubhouses. There is a License Fee on fractional units of 6.5%.
There is an absolute prohibition on the sale of undeveloped land to unqualified non-Bermudians. However, qualified non-Bermudians can acquire undeveloped land. Qualified non-Bermudians are defined as non-Bermudian spouses of Bermudians and non-Bermudian children of Bermudians.
Non-Bermudians are permitted to own 100% of large hotel properties or up to 40% of a local company or commercial property. There is presently no license fee payable for the purchase of hotels or shares in local companies or commercial property.