GOVERNMENT POLICY ON THE ACQUISITION OF
PROPERTY IN BERMUDA BY NON-BERMUDIANS

POLICY FOR UNDEVELOPED LAND
There is a prohibition on the sale of undeveloped land to non-Bermudians, except in extenuating circumstances in which your Bermudian lawyer will be happy to advise you.

POLICY FOR HOUSES
It is possible for a non-Bermudian to purchase a house provided that the house has an annual rental value (A.R.V. a formula used for the calculation of land tax) of $126,000 or greater. This means that only a limited stock of houses of high value properties are available to non-Bermudians. At current market levels, the price of these properties start at approximately $2,000,000.

POLICY ON CONDOMINIUMS
Non-Bermudians may be permitted to acquire a condominium where the unit has an A.R.V. of at least $28,800 and is in one of the designated developments approved for ownership by non-Bermudians. Again, the effect of this is to ensure only the highest valued condominiums are available for non-Bermudian purchase. Current market prices for these start at approximately $400,000.

In general, non-Bermudians are not permitted to own more than one residential property at one time. The purpose of the regulation is to ensure that non-Bermudians acquire properties for their own use and not for speculation. In certain cases, second properties may be purchased, but only on the condition that the original property is sold within 12 months.

POLICY ON COMMERCIAL PROPERTY
Non-Bermudians are only permitted to wholly own hotel properties of more than 50 beds or up to 40% of a local company or commercial property.

COSTS
Non-Bermudians wishing to acquire real estate in Bermuda are required to obtain a license from the Ministry of Labour and Public Safety. Applications for license should be made through a local Attorney. The application fee for all licences is currently $1,097.00 which is payable when the application form is submitted. When a licence to purchase is granted, the application fee will be refunded. Once approval has been given, the fee for the grant of a license is 22% of the purchase price for a house or 15% 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 $1,000,000 (but not exceeding $1,500,000) is at 5%
  
• Thereafter 6%