With our natural and abundant beauty matched by a highly sophisticated business infrastructure, Bermuda attracts many visitors and many who become seriously interested in buying a home here.  With only approximately 24 square miles, and a population of 65,000, Bermuda real estate is very precious.  To safeguard Bermuda’s limited acreage for local people there are several restrictions regarding property sales to non-Bermudians. 

The current Bermuda Government policy relating to property purchase by non-Bermudians:-

UNDEVELOPED RESIDENTIAL LAND
      Acquisition of undeveloped land is prohibited by non-Bermudians.  (Spouses and children of Bermudians may acquire ownership of the property owned by the respective Bermudian spouse or Bermudian parent)

COMMERCIAL PROPERTY
      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. 

PRIVATE HOMES and CONDOMINIUMS
      The vast majority of housing in Bermuda has been safeguarded to remain in the ownership of Bermudians in order to adequately house the local population.  However, it is recognized that there is only a limited market for the higher priced properties, and it is these properties that may be acquired by non-Bermudians for their private residential use.
      Bermuda homes and condominiums are designated with an Annual Rental Value (ARV), an assessed value for the basis of land tax.  This ARV number is also used in determining which properties may be sold to non-Bermudians. 
Houses available to non-Bermudians must have an A.R.V. of $153,000.00 or higher, and which are currently owned by a non-Bermudian.  Homes of this assessment bracket are at the very top of the market in value and have starting prices of approximately US$2,500,000.00.
Condominiums are available for sale to non-Bermudians with an ARV of $32,400 or greater, and which are currently owned by non-Bermudians. Prices vary widely and can start at US$800,000.00 up to $2,000,000.00.
Non-Bermudians wishing to acquire a residential property in Bermuda must apply for a license from the Minister of Labour and Home Affairs, currently costing approximately $1,200.00.  Once approved for a license to purchase, the fee for that license is 22% of the purchase price for homes, and 15% of the purchase price for the license fee of condominium purchases.

FRACTIONAL OWNERSHIP
       In recent years, fractional ownership within private membership property developments has 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.  The purchase licensing fee is 10% of the purchase price.

(This information has been updated as of  September 8, 2005.  Fees and conditions are subject to change without notice.)