Bermuda attracts many visitors and non Bermudians who have an interest in owning a home on the island. With a land mass of approximately 21 square miles, and a population of 65,000, Bermuda real estate is very precious. To safeguard Bermuda’s limited acreage, the Bermuda Government has established policy relating to and restricting property purchases.
All property in Bermuda (except vacant land) is designated with an Annual Rental Value (A.R.V.). The A.R.V. designation is used to determine land tax and does not necessarily reflect sales or rental market values. Additionally, the Government also uses A.R.V. values as a basis for determining which properties may be sold to non-Bermudians. Each property A.R.V. may be viewed on the Government website www.landvaluation.bm.
BUYING / SELLING
BERMUDIAN / SPOUSE OF BERMUDIAN BUYERS
Bermudians may purchase any home, condo, land and commercial property regardless of the A.R.V. designation of the property or any other restriction.
PRC holders are able to purchase any property on the market except vacant land or property which was developed as part of a Government assisted scheme.
NON BERMUDIAN BUYERS
Non-Bermudians are restricted in the purchase of a home or condo based on the A.R.V. designation of the property. Homes must have an A.R.V. of $126,000 or greater; condos must have an A.R.V. designation of $25,800 or greater.
Homes of this assessment bracket are at the very top of the market in value and have starting prices of approximately US$3,500,000.00. Condominium prices vary widely and can start at US$500,000.00.
Vacation homes, within private membership property developments, have become a popular form of property ownership in Bermuda by non-Bermudians. Fractional ownership offers the purchaser a deeded real estate interest in a “residence”. These developments offer many amenities such as swimming pools, tennis courts, golf course/club, beach clubs etc. Please contact our agents for further details.
Non-Bermudians may not purchase undeveloped vacant land.
Ownership of commercial property is limited to a 40% share, as is investment in local business. The exception to this is ownership of major hotel properties.
CLOSING COSTS FOR SALES
Closing costs for a buyer consists mainly of Stamp Duty. Stamp Duty can be calculated from the rates listed below. You can get a more detailed breakdown of possible closing costs from visiting our handy estimator here.
|Stamp Duty Band||Stamp Duty Rate|
Estimate mortgage payments, what you can afford and more with our handy estimators.
Also, check out the informative links to local banks’ mortgage pages.
If you are looking to rent, be advised that rental units with an ARV below $22,800 are subject to regulations of Rent Control. Contact us to find out more.
To find out more about Rent Control or prospective properties please contact us at email@example.com, 292-4990 or fill out a Rental Application here.