Acquiring Property:
The Bermuda government has implemented legislation to preserve the majority of the housing market and undeveloped residential land for Bermudian ownership. However, the government has worked to create a space in which non-Bermudians can purchase property on the island.
License to Acquire:
A non-Bermudian seeking to purchase property in Bermuda must obtain a license from the Minister overseeing Immigration. To apply, individuals must fill out the designated form and provide a banker’s reference along with two personal references from individuals who have known them for at least three years. While Bermudian referees are preferred, non-Bermudian references are acceptable.
Additionally, applicants must demonstrate that Bermudians have had a fair chance to purchase the property. Currently, proof can be shown through copies of advertisements published in local newspapers.
Several conditions must be met for the license to be granted.
License Fee:
- Purchase of a freehold house – 12.5% of the purchase price
- Purchase of a leasehold condo - 8% of the purchase price
Acquisition of a House:
In order for a freehold house to qualify for purchase by a non-Bermudian, it must have an Annual Rental Value (ARV) of $126,000 or higher.
Additional restrictions are in place to prevent non-Bermudians from acquiring multi-unit dwellings, except for those already owned by non-Bermudians where at least one unit has an A.R.V. of $126,000.00 or more. Non-Bermudians are limited to owning a maximum of two residential properties (such as houses, apartments, or condominiums) simultaneously. However, an exception allows a non-Bermudian to purchase a third property under the condition that they sell one of their existing properties within twelve months (or a longer period of up to three years as approved by the Minister) of acquiring the third property.
Generally, non-Bermudians are not permitted to sub-divide land and must sell the property as a single unit. An exception may be granted if the property has multiple dwellings and dividing the land would result in the non-Bermudian retaining a dwelling with an A.R.V. above the minimum threshold, while selling the subdivided portion to a Bermudian.
Acquisition of Condos:
Certain categories of non-Bermudians, including Permanent Resident Certificate holders, holders of residential certificates, and individuals with a close Bermuda "nexus" (such as a non-Bermudian parent or child of a Bermudian), are eligible to purchase apartments and condominiums. For those without a Bermuda "nexus," the minimum Annual Rental Value (A.R.V.) requirement is $25,800. However, there is no minimum A.R.V. for individuals with a Bermuda "nexus."
