United States citizens and other international buyers benefit when Coldwell Banker Bermuda Realty guides them through the often complex rules determining who may buy property in Bermuda.
The main thing to remember is that there are two categories of residential real estate in Bermuda: Real estate that is available only to Bermudians and real estate that also is available to international buyers.
That's why this website's Search Property feature lets international buyers designate which category they seek.
From this simple distinction it gets more complicated. The following summary of additional requirements, exemptions and exceptions (expected as of April 2013) gives you an idea of how helpful it can be to have a knowledgeable real estate professional help navigate the process.
- To be eligible for purchase by an international buyer, a private property's annual rental value (ARV) must exceed a designated amount ($32,400 for a condominium, $177,000 for a house).
- Further restrictions are imposed on condominium properties which must be located in specifically designated developments.
- International buyers may also buy property in a development designated under the Bermuda Immigration and Protection Amendment (no.2) Act 2010 as tourist accommodation and hotel residences.
- Prospective international buyers must submit an application along with a consideration fee.
- The cost of a License to Acquire varies depending on the type of property you wish to purchase. Fees are set at the following rates but subject to increase in 2014:
- 6% of the purchase price of a condominium;
- 8% of the purchase price of a house;
- 6.5% of the purchase price of a tourist property.*
- Agreement in principle between an international buyer and seller includes a deposit of 10 percent of the purchase price. the deposit is held in escrow, subject to contract, and deducted from the overall purchase price.
- International buyers may not buy investment property such as land, commercial real estate or property intended mainly to earn rental income.*
- International owners may be granted permission to rent their property by the Immigration Department. Permission rarely extends to periods of more than a year and includes a tax of 7.25 percent.
These restrictions can make Leasing Property a preferable option for non-Bermudians who wish to live in Bermuda.
Prospective international buyers may want to review the Bermuda Immigration and Protection Amendment Act 2007.
Contact Coldwell Banker Bermuda Realty now to ensure compliance with all the rules and regulations that apply to your international real estate purchase.
*Several exemptions apply with respect to the most recent amendments made under the Bermuda Immigration and Protection Amendment (no.2) Act 2010 for property designated as tourist accommodation and hotel residences. Please contact Coldwell Banker Bermuda Realty at 441-292-1793 to speak with a Sales Representative about these exciting new opportunities