Agencies/Multiple Listings:

Can I see everything that is available with just one agent?

The process of co-brokerage (a non-automated form of sharing listings among agencies) works well in Bermuda. If you have chosen one agent who satisfies your needs and with whom you are happy, she/he can work with all of the other agencies on the island to show you every property available which suits your requirements.

Is my agent working for me?

Unless you have specifically arranged otherwise by entering into a "buyer agency" contract with your agent, you should assume that she/he is working, directly or indirectly, for the owners whose property she/he is showing you. She/he is, however, not obligated not to misrepresent the facts regarding any property, insofar as she/he knows them.

What can overseas buyers purchase?

Overseas buyers are permitted to buy only selected properties in Bermuda: houses with an assessed "ARV" (annual rental value - our land tax base) over $153,000 (providing the house is currently owned by an overseas owner) and approved condominiums. They are prohibited from buying undeveloped land. Non-Bermudian property owners are also prohibited from buying "investment" property or property intended primarily to earn rental income. While they may be given permission by the Immigration Department to rent under certain circumstances, this permission cannot be taken for granted and is generally not given for periods in excess of one year. (A tax of 10% is paid to the government on rental income earned by non-Bermudians).

The Process of the Purchase:

How long will it take to close?

If you are an overseas buyer, the length of time will be determined by how long it takes the Department of Immigration to process your application for a License to Acquire Property. This can range from 6 weeks to 6 months or more, but is typically in the vicinity of 4 months. Sales contracts usually specify that the closing take place within a set time from the date of the grant of the License, usually 60 days.

What is the License to Acquire Property (note: for overseas buyers)?

The License to Acquire Property is required for non-Bermudians wishing to buy a home in Bermuda. The government charges a fee of 22% of the price of a house (or 15% if you are buying a condo) for this license, if it is granted. The review process is designed to determine that you are financially independent and that you are not an "undesirable" person. Personal and financial references will be required and some research will be conducted. Your local property lawyer will co-ordinate the process for you.

Taxes on Property:

What is the Land Tax?

Bermuda's land taxes are relatively low by world standards. Payable twice a year, they are calculated annually on a sliding scale based on the ARV (government-assessed "Annual Rental Value"), not the "value" of the property.

Do we have to pay a tax when we sell?

The vendor is typically responsible for paying 50% of the stamp duties on a conveyance (see Conveyancing Schedule).

Are there any other taxes on property?

There are no other taxes on property, except those mentioned in this document.

Other Property Ownership Costs:

What is the cost for ground maintenance?

A gardener will cost about $25.00 per hour. There are numerous gardening contractors who will quote you for year-round maintenance. Coldwell Banker Bermuda Realty can create an individually tailored property management plan for absentee owners. Quotes are available upon request.

Additional Frequently Asked Questions:

What areas are most secure?

Bermuda's crime rate is low by any standard, with very petty burglaries seeming to be the most prevalent crime. Almost all of Bermuda is, therefore, relatively secure. The prime residential areas have a particularly low crime rate. These include, among others, Tuckers Town, Fairylands, Point Shares, Paget's south shore, Habour Road, and many other sections of the island.

If we buy a house, does it entitle us to Bermudian citizenship?

No, nor does extended residence on the island.

If we buy a house, can we work in Bermuda?

The granting of a work permit is entirely separate from the issue of home ownership.

What nationalities tend to buy in Bermuda?

The British, Canadians and Americans figure most prominently among our guest residents, with other Europeans also well represented, as well as Australians, and to a lesser degree Asians.

What tax benefits do we have (in our home country) if we buy a house in Bermuda?

A tax specialist with expertise in your own country's laws will have to help you on this one.

If we rent a house, does that give us the right to have a residency permit?

Home ownership will give you the right to reside on the island. There also exists a separate document called a "residency permit," about which your Bermuda lawyer can tell you more.

Closing Costs:

What is the Stamp Duty?

Stamp duties are charged on a sliding scale:

(i) on the first $100,000 of that amount of value, or any part thereof, 2.5 per centum;

(ii) on the next $400,000 of that amount or value, or any part thereof, 3 per centum;

(iii) on the next $500,000 of that amount or value, or any part thereof, 4 per centum;

(iv) on the next $500,000 of that amount or value (over $1,000,000 but not exceeding $1,500,000) or any part thereof, 5 per centum;

(v) thereafter 6 per centum;

This is payable by the Purchaser/Vendor (seller) in equal shares as a norm; however, negotiations can lead to one party paying both legal fees and stamp duty.

Financing:

What institutions in Bermuda provide funds?

The three local banks provide financing. Purchasers wishing to finance should get advice from their existing banker and may wish to talk to the local banks about their personal financial position. Click here for links to several financial institutions in Bermuda.

Development Potential:

Can I do whatever I want by way of development?

Bermuda's Department of Planning ultimately determines what can and cannot be done by way of development; however, their guidelines are set out in written form. It is highly recommended that you seek advice from an architect who has a good track record at working with the Planning Department.

Can I subdivide?

The potential for subdivision will be governed by the zoning of the area. Non-Bermudians may not subdivide unless the portion subdivided is sold to a Bermudian and the portion retained has a qualifying ARV. Other rules apply and legal advice should be obtained if this is a consideration.

What zoning areas are there?

Residential properties are typically zoned either Residential 1 or Residential 2. Residential 1 is higher density than Residential 2. We have a copy of the complete guidelines in our office, if you wish additional specifics.

Where are the guidelines set out?

The Bermuda Plan 1992 - Planning Statement is the book to which you should refer to ascertain the details of allowable site coverage, set backs, etc. for any given area. The Bermuda Plan - 1992 MAPS will show the 1992 zoning for every part of the island.