ACQUISITION OF PROPERY IN BERMUDA BY A NON-BERMUDIAN 1. 11. POLICY ON UNDEVELOPED LAND Qualified Non Bermudians are defined as Non-Bermudian spouses of Bermudians and Non- Bermudian and children of Bermudians. These individuals are allowed to acquire undeveloped land. There is an absolute prohibition on the sale of undeveloped land to unqualified Non Bermudians. 2. POLICY ON COMMERCIAL PROPERTY & BUSINESSES Non-Bermudians are only permitted to own hotel properties of more than 50 beds or up to 40% of a local company (which then is allowed to purchase a commercial property - but the non-Bermudian partner is not allowed to make a commercial purchase on their own). 3. POLICY ON PRIVATE HOUSES Non-Bermudians are able to purchase houses that have a current Annual Rental Value (ARV) of $153,000 and greater, and which also are currently owned by a Non-Bermudian. (Non-Bermudians may not purchase a home over the $153,000 ARV if it is currently owned by a Bermudian). The ARV is the number used in the calculation of attendant land tax. The number of homes falling into this category is very limited and prices usually start around US$4 million 4. POLICY ON CONDOMINIUMS Non-Bermudians are able to purchase Condominiums in developments designated by the Bermudian Government, as being available to Non- Bermudians. These specific condominiums must have an ARV of $32,400 or greater and must also currently be owned by a Non-Bermudian. Condominium prices usually begin around US $1,150,000. 5. COSTS Non-Bermudians wishing to acquire real estate in Bermuda are required to obtain a license from the Ministry of Labour and Home Affairs. Applications for license most be made through a local attorney. Application fee for licenses is approximately $1500. This is payable when the application form is submitted. When a license to purchase is granted, the application fee will be refunded. Once approval has been given, the fee for the grant of a license is 25% of the purchase price for a house or 18% of the purchase price for a condominium. There is presently no license fee for the purchase of hotels or shares in local companies or commercial property. It is usual in Bermuda for the costs of the agreement as well as the preparation of conveyance and the stamp duty to be equally shared between Vendor and Purchaser. The bulk of this cost, the stamp duty, is calculated based on the purchase price as follows: - First $100,000 is at 2%
- Next $400,000 is at 3%
- Next $500,000 is at 4%
- Next $500,000 ($1,000,000 but not exceeding $1,500,000) is at 6%
· Thereafter.................7%
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This information is provided as a general guideline and it is our recommendation that you contact a qualified conveyance attorney for details specific to your situation. |