Bermuda Property Buying Guide for Non-Residents

Non-Bermudians may acquire property in Bermuda, but the transaction requires a licence from the Minister responsible for land acquisition. The rules have long restricted foreign ownership to higher-value homes and certain condominium units, with lower-value properties reserved for Bermudians. Exact thresholds, based on annual rental value, have been revised over time and must be checked with a local attorney.

The island is small and densely regulated, with strict planning control and limited new development. Prices are therefore high and the supply of foreign-eligible property is narrow. Many overseas buyers combine a purchase with an application for a residential certificate or a long-term work route, since owning does not on its own give a right to live there.

1. Establish which properties are open to non-Bermudians by checking the property's annual rental value and classification.
2. Appoint a Bermudian attorney, who will manage the transaction and licence application.
3. Agree the price and sign a contract subject to the grant of a licence to hold land.
4. Your attorney files the licence application with the required supporting documents and fees.
5. Carry out searches, title checks and a survey, and arrange insurance for hurricane and wind exposure.
6. On licence approval, complete the transaction by paying the balance, stamp duty and fees.
7. Register the conveyance and set up land tax and utilities.

The Bermudian attorney is essential: only locally qualified lawyers can run the licence process and conveyance. They check title, advise on the type of property you may hold and prepare the paperwork.

Surveyors and building inspectors matter because of limestone construction, roof-collected water supply and storm exposure. Agents typically charge around 5% and may split with the seller's agent. For borrowing, read mortgage options in Bermuda for foreigners and test scenarios in the mortgage calculator.

• Licence eligibility: annual rental value and property classification.
• Title and any restrictions on use, letting or sale to a non-Bermudian.
• Roof, water tank and catchment condition, which supply drinking water in most homes.
• Hurricane resilience, building code compliance and insurance availability.
• Planning permissions for any alterations and conditions on extensions.
• Land tax assessment and current payments.

Bermuda has no capital gains or personal income tax in the usual sense, but property carries stamp duty, a licence fee and annual land tax. The rates below are approximate and tiered, so verify locally.

Property ownership does not grant a right to reside in Bermuda. Overseas owners usually visit as visitors, while longer stays require a work permit or a residential certificate. The residential certificate has historically been available to buyers of high-value properties who meet financial and other criteria, with a cost attached.

Given the scale of the investment, take immigration advice at the same time as legal advice on the purchase.

Visit the island and speak to a few owners before committing; costs of living, utilities and building maintenance are high, and the property rules mean the choice of homes is narrow. Ask your attorney how long licences are currently taking and whether any recent policy changes affect your category of property. Budget for annual land tax, insurance and upkeep, and test your rental or resale assumptions conservatively because the buyer pool of eligible purchasers is small. Ask whether furnishings, boats or club memberships are included in the price, and have them listed separately in the contract.

• Falling in love with a property that a non-Bermudian cannot legally hold.
• Buying without making the contract conditional on the licence.
• Assuming mains water exists; many homes rely on rainwater tanks.
• Underestimating hurricane insurance costs.
• Treating ownership as a route to residency.