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Acquisition Of Property In Bermuda By A Non-Bermudian


 

 

 

Non-Bermudian Property Acquisition

 

Non-Bermudian and Permanent Certificate Holders (PRC’s)

Non-Bermudians may only purchase property that is qualified by a minimum Annual Rental Value ("ARV").

The ARV is used to determine land tax and is not necessarily a reflection of market value.

  • The minimum ARV for houses is $126,000 and $25,800 for condominiums.

In addition, condominiums available to Non-Bermudian purchasers must be in a “designated developments”.

The effect of these guidelines means that only the highest valued properties are available for Non-Bermudian purchasers.

Houses with a qualifying ARV start at around $3m and condominiums at around $500,000.

 

Non-Bermudian purchasers must obtain a license from the Minister of Labour and Home Affairs (The Hon. Patricia J. Gordon–Pamplin, JP, MP); their application is made through a local attorney of their choosing.

 

  • PRC Holders are permitted to own two residential properties but not within a Government development.
  • License fees are 8% of the purchase price of a house and 6% for a condominium. Current License Fees are proposed to increase as of the 31st of March, 2017.

 

As of the 31st of March, 2017, license fees for Permanent Resident Certificate Holders ("PRC") purchasers will be 4% for of the value of the land and rise to 6%.

For other non-Bermudians, purchasing a residential unit, currently with land-holding charges of 8% of the value of the land, will rise to 12.5%. When purchasing a condo at 6% of the value of the land, this will eventually rise to 8%.

Applicants are required to provide a banker’s reference and personal references (preferably Bermudian if possible).

  • The license application fee (which is refunded when the license is granted), is currently $1,546.

 

Non-Bermudian Trust

The government has approved Non-Bermudian purchasing by the application in Trust subject to (a) locally licensed Trustee, (b) limited to one generation and (c) after death, the property must be sold within 2 years.

Residency Requirements

For more information on the residency requirements for Non-Bermudians to purchase property in Bermuda, please refer to the Bermuda Government website: www.gov.bm

Multiple Property Ownership

Generally, a non-Bermudian is not permitted to own two residential properties.