In March 2023, the Bermuda Government revised the Stamp Duty Act of 1976 to support first-time homebuyers and improve fairness in stamp duty fees. These changes included raising the exemption threshold, eliminating stamp duty fees for mortgage transfers, and introducing marginal rates.
The government increased the Stamp Duty exemption threshold from $750,000 to $1,000,000. This adjustment ensures that first-time homebuyers purchasing properties valued up to $1,000,000 are exempt from paying any stamp duty.
Furthermore, individuals with existing mortgages up to $1,000,000 can transfer their mortgage to another financial institution without facing Stamp Duty charges.
Premier and Minister of Finance, David Burt explained, “If an individual is holding a mortgage of $1,000,000 or less and becomes dissatisfied with their current mortgage rate and receives a more advantageous offer from another bank, the individual now has the option to transfer their mortgage without incurring any Stamp Duty fees, potentially saving them up to $5,000."
The Government also introduced marginal rates. Consequently, all first-time homebuyers, regardless of purchase price, are exempt from Stamp Duty charges on the first million dollars of their property purchase.
“A First Time Home Buyer purchasing a property valued at $1,200,000 will only be paying stamp duty on $200,000, incurring $12,000 of stamp duty charges. In contrast, before the Stamp Duty Act 1976 amendments, they would have paid stamp duty on the full $1,200,000 incurring $46,000 of stamp duty charges and therefore ultimately save $34,000. That is real savings the Government is providing for the people of Bermuda.”
