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Buying a home in Bermuda: only with a licence, above a set rental value, and with 12.5% on top

A foreigner may only buy a home in Bermuda with a government licence. A house must have an annual rental value (ARV) of at least $126,000, a condominium at least $25,800. The licence costs 12.5% of the value for a house and 8% for a condominium, plus stamp duty of 2.1 to 7.35%. According to the law, an ordinary condominium is only possible with permanent residence.

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A foreigner may buy a home in Bermuda, but only with a government licence, and only in the most expensive part of the market. A house must have an annual rental value of at least $126,000 (about €112,600), a condominium at least $25,800 (about €23,050). The licence costs 12.5% of the value for a house and 8% for a condominium. On top of that comes stamp duty of 2.1 to 7.35%. Buying a home also gives you no right of residence. For most people, renting is therefore the first step.

Why do you need a licence?

The immigration law, the Bermuda Immigration and Protection Act (BIPA), calls everyone without Bermudian status a restricted person. A Dutch national on a work permit or their own income is one too. A restricted person may not acquire land or a building without a licence (sections 72 and 76). In addition:

  • No undeveloped land. Buying a building plot is not allowed (section 90).
  • One dwelling per plot. You may not hold more than one dwelling on the same plot (section 91).
  • Above the threshold. The home must have a minimum rental value (sections 91 and 92, with the thresholds from the 2007 regulations).

The threshold works with the annual rental value (ARV). That is the yearly rental value the government assigns to every home, even if it is not let. An ARV of $126,000 therefore means a home that the government estimates could bring in $126,000 a year in rent. That is the top of the market.

What does a licence cost, and what comes on top?

Cost House Condominium
Minimum ARV for a restricted person $126,000 $25,800
Licence (land-holding charge) 12.5% of the value 8% of the value
Stamp duty on the deed 2.1 to 7.35%, in bands same
Land tax twice a year, based on the ARV same

Stamp duty is charged in bands over the purchase price:

Part of the purchase price Rate
first $100,000 2.10%
next $400,000 3.15%
next $500,000 4.20%
from $1 to $1.5 million 6.30%
above $1.5 million 7.35%

An example. Say you buy a house for $2 million. The licence then costs $250,000. Stamp duty comes to about $104,000. Together that is some $354,000, about €316,000, on top of the purchase price. Stamp duty must be paid within 30 days of signing. Everyone who signs the deed is liable for it.

Bermudians get an exemption from stamp duty on their first home. It does not apply to you, unless you marry a Bermudian and buy together.

The licence percentages come from regulations last amended in 2019, and the stamp duty text is from April 2023. We found no later changes, but they may exist. Have your lawyer confirm the amounts before you make an offer.

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May you buy a condominium?

Not with only a work permit. Since 8 June 2015, under section 92(2) of the BIPA, a restricted person may only buy an ordinary condominium (not a hotel or tourist unit) if they:

  • Are family of a Bermudian owner. Spouse, child or parent, as the law defines them.
  • Have permanent residence. A Permanent Resident's Certificate, or a "residential certificate" such as the investor certificate EIRC.

That is deliberate policy: the government wants to keep the condominiums for young Bermudians, and in 2022 refused to reverse the rule. The law firm Conyers says the same in 2025. Estate agents' sites often mention only the $25,800 threshold and the 8%, but not who can get the licence.

What is possible with a work permit: a house above $126,000 ARV, or a unit in a hotel or tourist development. Separate rates apply to those: 0% if the unit goes into hotel letting, 6.5% for your own use.

Who pays less?

Your situation Licence ARV threshold
Spouse of a Bermudian, buying together no charge none
Permanent resident 6% none
Holder of a residential certificate, such as the EIRC 12.5% (house) or 8% (condominium) $126,000 or $25,800
Work permit or other residence 12.5% (house); an ordinary condominium is not possible; hotel unit 6.5% for own use, 0% in hotel letting $126,000

You only get a Permanent Resident's Certificate after twenty years of living in Bermuda. For a new emigrant on a work permit, the last row almost always applies.

What does buying mean for your residence and your estate?

Buying a home is not a route to stay. You first need a work permit, partner residence, Permission to Reside or the investor certificate. Read residence routes for Bermuda.

After a death, Bermuda levies estate duty on Bermuda property, such as a house on the island. The first $100,000 is free, after which the rate rises to 21%. What goes to your spouse and the house you designate as the family homestead do not count. How that fits with Dutch inheritance tax, you can read in state pension, pension and tax in Bermuda.

If in doubt, start with renting in Bermuda: that is allowed for up to five years without a licence.

In Vertrekklaar this is phase 5 of 5 of the journey, step 5.6: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Bermuda or go straight to step 5.6 in the open plan.

Want to know more about this?

Then we'll send you the departure checklist for Bermuda, with every step in order, and five mails about the pitfalls and the real costs. You can switch it off at any time.

We use your address, and your departure date if you fill it in, only for the checklist, the guide and the mails after it. You can unsubscribe under every mail.

What this rests on

The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.

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