Bermuda – Buying Property

Are there legal restrictions on property ownership by foreign nationals?

The Bermuda government tightly controls market access to protect local interests, making Bermuda one of the world’s most regulated property markets. Property ownership is governed by the Immigration and Protection Act and local laws that limit the homes available to non-Bermudians. Anyone moving to Bermuda from abroad should understand these restrictions thoroughly before beginning any property search.

According to the Bermuda Government, only about 5% of the island’s residential properties are available for non-Bermudians. Bermuda’s property ownership laws distinguish clearly between Bermudians and non-Bermudians. Bermudians enjoy unrestricted rights when it comes to purchasing and owning property. Non-Bermudians, on the other hand, are limited in what they can buy — only specific properties, often luxury homes, waterfront estates, and resort residences, are available for foreign ownership.

Foreigners are required to obtain an Alien Landholding Licence (ALL) before purchasing property in Bermuda. This licence is a legal document issued by the Bermuda government that authorises non-Bermudians to acquire and hold land or property. Non-Bermudian purchasers must obtain a licence from the Minister of Labour and Home Affairs; the application is made through a local attorney of their choosing. Persons applying are required to provide a banker’s reference and personal references (preferably Bermudian, if possible).

Eligibility can involve the property’s Annual Rental Value (ARV), which is a government assessment used in Bermuda property matters. For houses, the minimum ARV requirement is $126,000. For condominiums, the stated minimum ARV is $25,800. These figures should be verified with your attorney, as they can change.

Licence fees for international buyers’ real estate purchases are currently set at: 12.5% of the purchase price of a house; 8% of the purchase price of a condominium; and 6.5% of the purchase price for a property that forms part of a hotel development. Hotel residences attract a fee of 6.5%, unless the buyer opts to include one key in the hotel inventory, when it is reduced to 0%.

Non-Bermudians are also banned from acquiring undeveloped land, though an exemption is given to non-Bermudian spouses and children of Bermuda nationals. Non-Bermudians are typically limited to owning one residential property at a time, and it must meet certain ARV thresholds.

Heavy penalties — including USD $1 million fines and prison terms — apply where a person is found to be fronting for a foreign national (fronting is assuming the rights of an owner without securing the required licence). It is therefore important that any temporary arrangements do not exceed the term that might have been allowed without a licence.

With an investment of at least US$2,500,000 (through a variety of means, including real estate purchases), an application for an Economic Investment Residential Certificate (EIRC) can be made to the Bermuda Government by the international buyer. A successful application will see the international buyer granted an EIRC, enabling them to own condominium property, or a house, and have residency in Bermuda.

Owning property in Bermuda does not grant you residency or the right to live full-time on the island. Separate immigration processes exist for work permits, long-term residency, or economic contribution routes, all of which require legal consultation.

What are average property prices in Bermuda?

Bermuda’s residential real estate market continues to hover around an average home price of $1 million, but the full picture is far more nuanced than a single number suggests. This average is heavily influenced by the island’s very limited stock and the high entry threshold imposed on foreign buyers.

A three-bedroom, two-bathroom house on a quarter-acre in one of the central parishes, in a good neighbourhood and good condition, will cost starting from approximately $1.3 million to $2 million, according to Susan Thompson, agency manager at Coldwell Banker Bermuda.

Location dramatically impacts pricing. The same property in St George’s might sell for $850,000, but if placed in Devonshire, you are probably looking at upwards of a million dollars.

As of mid-2025, the average square-metre price in Bermuda varies significantly based on location, property type, and proximity to the coastline. In Hamilton, properties average between $12,000 and $18,000 per square metre, with luxury condos at the higher end. In Southampton and Warwick — popular for both expats and locals — properties range from $8,500 to $14,000 per square metre, with beachfront properties priced higher. Inland, non-coastal homes can be more affordable, starting from around $6,500 per square metre.

Beachfront villas often exceed $20,000 per square metre due to their location and premium amenities, while modern condos with shared facilities may be more cost-efficient.

Comparing 2020 to 2025, Bermuda has seen an average price increase of 8 to 10 percent, driven by limited inventory and consistent demand from offshore investors. This steady appreciation underlines the island’s resilience as a property market, even against global economic headwinds.

What are the most popular locations to buy property in Bermuda?

Bermuda offers a variety of locations suitable for expats and investors. Popular areas include Hamilton, Paget, Sandys, St George’s, and Southampton. Urban areas provide access to business hubs and amenities, while suburban locations offer tranquillity and scenic views.

Hamilton and Pembroke Parish: Property value is influenced by location, amenities, and market demand. Waterfront properties and homes in central areas like Hamilton or Pembroke tend to attract premium prices. Hamilton is Bermuda’s commercial capital, making it particularly popular with those working in finance and international business. Pembroke, which surrounds Hamilton, offers a mix of urban convenience and residential calm.

Paget Parish: Paget is one of Bermuda’s most prestigious residential parishes, lying just south of Hamilton across the harbour. It combines accessibility to the capital with a quieter, leafy residential character. The parish is home to some of the island’s finest estates and is a perennial favourite with international buyers seeking a balance of prestige and practicality.

Southampton Parish: Southampton is popular for both expats and locals, with properties ranging from $8,500 to $14,000 per square metre, and beachfront properties priced higher. The parish is renowned for its pink-sand beaches, golf courses, and resort-style living, with resort residences being accessible to foreign buyers at a lower licence fee rate.

St George’s Parish: St George’s is one of the island’s sought-after areas where foreign buyers can typically purchase luxury villas, condominiums, and estate homes. As a UNESCO World Heritage Site, the historic town of St George’s offers a unique atmosphere and is generally more affordable than the central parishes.

Sandys Parish (Somerset): Located at the western end of the island, Sandys offers a slower pace of life, beautiful coastline, and a strong community feel. It is popular with buyers looking for more space and a quieter environment, and it tends to have a somewhat lower entry price than central parishes.

Are there any new or up-and-coming areas to consider?

Pembroke is emerging as a particularly attractive parish, with recent figures highlighting a steady rise in property demand, driven by families, young professionals, and retirees alike. What makes Pembroke attractive is its unique mix of modern living, welcoming community spirit, and access to essential services.

The City of Hamilton itself has seen renewed attention following recent regulatory changes aimed at encouraging development. Restrictions that previously made it difficult for non-Bermudian buyers to acquire property in the City of Hamilton have been relaxed, with economic concessions extended to persons developing land in the city as a whole. This makes Hamilton-area development properties a more accessible and potentially rewarding option for international investors than they have been in the past.

Devonshire Parish, situated in the centre of the island, is also attracting increasing interest. It offers a quieter residential environment, proximity to the railway trail, and relatively more accessible pricing compared to Paget or Hamilton — though prices still reflect Bermuda’s overall premium market. For buyers who do not require waterfront access as a priority, Devonshire offers good value relative to the island average.

What are the current trends in the Bermuda property market?

Luxury properties are the crown jewel of Bermuda’s real estate market. Luxury buyers are no longer satisfied with just ocean views and infinity pools — they are looking for homes equipped with the latest technology, including smart lighting, security systems, and automated amenities.

Eco-consciousness is becoming a priority. Properties designed with sustainable materials, energy-efficient systems, and minimal environmental impact are top choices for discerning buyers. Given Bermuda’s reliance on imported energy and its vulnerability to climate events, energy-efficient construction also offers practical running-cost benefits beyond the lifestyle appeal.

The market faces major challenges, primarily a severe inventory shortage. Rising inflation, supply chain issues, and higher interest rates have caused development costs to increase materially. This has impacted speculative development adversely — in particular, there are very few new condominiums coming to market.

Increased foreign investment is a defining trend, with more international buyers attracted by the island’s stability and tax benefits. High-net-worth individuals are driving demand for premium properties.

Bermuda’s ageing population and lack of appropriate housing is an emerging concern. The island is not well set up to cater to seniors seeking to downsize, with limited options for smaller, accessible properties. This gap in supply represents both a challenge for the community and a potential opportunity for developers who can deliver suitable smaller-footprint homes.

Is buying property in Bermuda a good investment?

Prices stay elevated due to three key factors: limited property supply, strict foreign ownership rules, and zero income tax. These structural characteristics mean that Bermuda property is unlikely to experience the kind of dramatic price falls seen in larger, more liquid markets — but they also mean entry costs are high and the pool of potential buyers on resale is narrow.

Bermuda does not impose capital gains, inheritance, or wealth taxes. That said, foreign investors must navigate certain fees and levies, including stamp duty, annual land tax, and additional government costs. The absence of capital gains tax means any appreciation in property value is retained in full — a significant advantage over many other jurisdictions.

When compared with the Cayman Islands, Bahamas, and Barbados, Bermuda’s property taxes are predictable and transparent. While stamp duties may be higher than some Caribbean markets, the absence of wealth and capital gains taxes makes Bermuda particularly attractive for high-net-worth investors seeking luxury homes or investment properties with stable long-term value.

Rental income is permitted but must comply with reporting requirements. Engaging a local property manager is recommended to optimise income and ensure compliance. However, if a non-Bermudian owner of property in Bermuda wishes to rent out their property, a permit from the Minister for the Cabinet Office will be required. This is an important step that is sometimes overlooked.

The Bermuda property market is limited in inventory and foreign buyers. Consider how easily you can resell the property should you choose to exit the market — properties in high-demand areas typically have better resale performance. Buyers should approach the market with a long-term horizon and seek independent financial advice before committing.

What are the most common property types in Bermuda?

Bermuda’s housing stock is shaped by the island’s geography — it is just 21 square miles in total area — and by decades of strict planning controls. The result is a market dominated by established residential properties with very little new-build supply for non-Bermudians.

• Detached houses and cottages: The classic Bermuda home is a pastel-painted stone cottage or detached house with a distinctive white-stepped roof (designed to collect rainwater). These are the most sought-after property type and carry the highest licence fees for foreign buyers (12.5% of purchase price).
• Condominiums: Condominiums are usually located in resort-style developments with access to golf courses, restaurants, and concierge services. They represent the most accessible entry point for non-Bermudian buyers, with a lower licence fee (8%) and lower ARV thresholds.
• Leasehold condominiums: Most condominiums are formed with a company holding the freehold and the main structure, with unit buyers holding 999-year leases of an “internal shell”. This is the standard structure for condominium ownership and is broadly comparable to leasehold flats in markets such as the UK.
• Hotel and resort residences: Some resort developments offer fractional or whole-unit ownership, and these attract the lowest licence fee rate for foreign buyers. Including a unit in the hotel rental inventory can reduce the licence fee to 0%.
• Waterfront and estate properties: Single-family homes often include access to private docks, swimming pools, and expansive sea views. Standalone homes tend to be more expensive and are often freehold, offering full ownership rights.
• Undeveloped land: Non-Bermudians are banned from acquiring undeveloped land, with limited exceptions for non-Bermudian spouses and children of Bermuda nationals.

What is the typical house buying procedure in Bermuda?

Purchasing property in Bermuda follows a well-structured legal process designed to protect both buyer and seller. The involvement of a qualified Bermudian attorney is essential throughout — unlike in some jurisdictions, there is no equivalent of a notary public in Bermuda; instead, qualified barristers and attorneys handle all conveyancing. The entire process for non-Bermudian buyers typically takes six to twelve months from offer to completion.

1. Engage a licensed estate agent and confirm eligibility. Work with a licensed Bermudian real estate agent who has experience with international buyers. Confirm at the outset that any property you are interested in is eligible for foreign ownership — not every listing is available to non-Bermudian purchasers. Not every Bermuda property can be sold to a foreign buyer, and this is the detail many people miss at the beginning.
2. Appoint a Bermudian attorney. Hiring a local lawyer is strongly recommended to handle property conveyancing and ensure compliance with Bermuda property laws. Your attorney will guide you through all legal steps, including the licence application. Bermuda does not use a notary public system; your attorney handles the role that a notary would perform in civil-law countries.
3. Make an offer and sign a Conditional Sale and Purchase Agreement. Once you have selected your property, your agent will draft a Sale and Purchase Agreement. For non-Bermudian buyers, this agreement is typically made conditional on obtaining the Alien Landholding Licence. A deposit (commonly 10% of the purchase price) is usually held in escrow at this stage. The agreement becomes legally binding on acceptance by both parties.
4. Conduct due diligence and property surveys. Your lawyer will conduct a title search, confirm property boundaries, and arrange inspections and valuations. A structural survey by a qualified surveyor is strongly advisable — particularly for older stone properties, which may have issues with roof maintenance, damp, or cistern condition. There is no mandatory survey in Bermuda, but it would be unwise to proceed without one. A thorough title search verifies that the seller has clear and undisputed ownership of the property and that there are no existing liens, boundary disputes, or legal encumbrances that could affect ownership rights. Title insurance is highly recommended in Bermuda.
5. Apply for the Alien Landholding Licence (ALL). This step is crucial for non-Bermudians. Your agent and legal representative will guide you through the documentation and submission process. You will need to demonstrate the financial ability to complete the purchase, including bank statements, investment portfolio summaries, or letters from financial institutions. Two or more personal references — written by long-time acquaintances, employers, or professionals such as lawyers or accountants — are also required to support your application. Approval times can vary but typically take between six to nine months.
6. Exchange contracts and pay the deposit. Once due diligence is complete and the licence application has been submitted, contracts are formally exchanged. In Bermuda, this is handled entirely by your attorney, who prepares and reviews all documentation. There is no separate “exchange of contracts” stage as distinct from the conditional agreement — your attorney manages the process from initial agreement through to completion.
7. Receive ALL approval and complete the purchase. After receiving ALL approval, you will complete the payment of stamp duty, licence fees, and other closing costs. Stamp duty is payable on the purchase price and is calculated on a sliding scale — check current rates with your attorney, as these are subject to change.
8. Register ownership. Complete the transaction and register your ownership with the Bermuda authorities. Your attorney will lodge the relevant documents with the Land Title Registry. Registration confirms your legal ownership and protects your interest against future claims.

Finding a reputable lawyer in Bermuda

The Bermuda Bar Association is the governing body for the legal profession in Bermuda. The Association is responsible for both the regulation and discipline of members of the legal profession in Bermuda. All lawyers practising in Bermuda must be members of the Bar Association, so checking membership is the simplest way to verify a lawyer’s credentials.

The law firms and professional companies listed on the Bar Association’s register are all registered to practise law in the jurisdiction. In accordance with the Bermuda Bar Act 1974 and the Bermuda Bar (Insurance) Rules 2009, all registered law firms are required to hold Professional Indemnity Insurance. You can search the full register of registered law firms on the Bar Association’s website.

The Bermuda Bar Association can be contacted at:
Second Floor, Swan Building, 26 Victoria Street, Hamilton HM 12, Bermuda
Tel: +1 (441) 295 4540
Email: [email protected]
Website: bermudabar.org

The Bar Association’s website includes a complete, regularly updated list of law firms licensed to practise in Bermuda, with contact details. This is the most reliable starting point when searching for legal representation. Several firms are particularly active in residential conveyancing for international buyers, including:

• Appleby (Bermuda) Limited — Canon’s Court, 22 Victoria Street, Hamilton HM 12. Tel: +1 (441) 295 2244. Website: applebyglobal.com — one of the world’s leading offshore law firms with a significant Bermuda property practice.
• Hamilton Legal — 4th Floor, 73 Front Street, Hamilton HM12. Website: hamiltonlegal.bm — a property law firm specialising in both residential and commercial transactions, advising on all aspects of real estate including sales and purchases, condominium developments, and bank financing.
• Marshall Diel & Myers Limited — 31 Reid Street, Hamilton HM 12. A well-established firm serving both local and international clients across property and commercial matters.
• Carey Olsen Bermuda Limited — Rosebank Centre, 5th Floor, 11 Bermudiana Road, Pembroke HM 08. Tel: +1 (441) 542 4500. Email: [email protected]. Website: careyolsen.com

Legal fees in Bermuda are not fixed by a statutory scale but are typically charged on an hourly basis or as a percentage of the property value for conveyancing work. Buyers should request a fee estimate in writing before engaging any firm. Given the complexity of the ALL application and the value of properties involved, legal costs can be substantial — budget accordingly and compare quotes from more than one firm.

What pitfalls and problems do buyers often encounter?

Bermuda’s property market is well-regulated and transparent, but its unique rules create several traps for buyers who are unfamiliar with the system. Being aware of these in advance can save significant time, money, and frustration.

• Viewing ineligible properties. Not every Bermuda property can be sold to a foreign buyer — this is the detail many people miss at the beginning, and it can lead to weeks of wasted time. Always confirm eligibility before investing time or emotion in a particular property.
• Underestimating the licence timeline. ALL approval takes time. Avoid scheduling moves or renovations before the licence is granted. The lengthiest part of the process is usually obtaining the Acquisition Licence, which can take between six and nine months to be approved. Buyers should factor in additional time for due diligence, title searches, contract negotiations, and closing formalities.
• Overlooking total transaction costs. Many buyers overlook stamp duty, insurance, or currency exchange costs. Creating a detailed budget upfront is essential. Beyond stamp duty and legal costs, buyers should also consider insurance, land tax, maintenance fees, and utility costs, all of which can add up over time.
• Assuming property ownership grants residency. Owning property in Bermuda does not grant you residency or the right to live full-time on the island. Many buyers are surprised to discover this, particularly those planning to relocate permanently.
• Neglecting title checks and surveys. Common issues discovered during title searches include historical boundary discrepancies, unpaid property taxes, and unresolved claims from previous owners. Addressing these issues before proceeding with the purchase protects buyers from future legal complications.
• Working with unlicensed professionals. Ensure your estate agent and legal advisor are licensed and experienced with foreign transactions. The Bar Association’s register (see above) is the definitive check for lawyers.
• Forgetting the rental permit requirement. Buyers intending to rent out their property must obtain separate permission. A permit from the Minister for the Cabinet Office is required before a non-Bermudian owner can rent out their property. Failing to obtain this permit before renting can result in penalties.
• Financing complications. Local acquisitions are most commonly funded by a Bermuda-licensed bank. It is relatively rare for an overseas bank to lend funds on the security of a Bermuda asset. Buyers relying on mortgage finance should arrange pre-approval from a Bermudian lender early in the process.

Purchasing property through a company in Bermuda

Some international buyers explore the option of purchasing Bermuda property through a corporate entity or trust, for reasons of asset protection, succession planning, or tax efficiency. The rules in this area are complex and have changed in recent years.

The Bermuda Government usually requires purchases of real estate by non-Bermudians to be in the name of an individual or individuals. Until recently, foreign companies or corporations were not permitted to buy residential real estate; however, under certain conditions this is now permissible.

Non-Bermudians generally cannot hold residential land in an LLC or trust. A corporate investor beneficially owned or controlled by non-Bermudians requires further corporate approvals, which may include a licence to do business in Bermuda and/or to take mortgage security. A company where 40% or less of the share capital is foreign-owned is deemed to be locally owned — which affects the licensing and fee requirements applicable to the transaction.

The government has approved non-Bermudian purchasing by application in Trust, subject to: (a) a locally licensed Trustee, (b) limitation to one generation, and (c) after death, the property must be sold within two years. These conditions are restrictive, and buyers considering trust structures must take specialist legal advice.

Owning through a company or trust can provide asset protection, succession planning benefits, and potential tax efficiencies, but requires adherence to Bermuda’s regulatory requirements. Companies may also face specific property tax rules, and trusts must adhere to Bermuda Monetary Authority regulations.

Given the complexity of corporate ownership structures in Bermuda, it is essential to engage a Bermudian attorney with specific experience in this area before proceeding. The costs, regulatory hurdles, and ongoing compliance requirements can outweigh the benefits for straightforward residential purchases, but for larger investments or estate-planning purposes, a properly structured corporate vehicle may be worthwhile.

Frequently asked questions

Can any foreign national buy property in Bermuda?

Yes, foreigners can buy property in Bermuda, but there are rules. Most non-Bermudian buyers need a government licence before they can complete a purchase — this is often called a Licence to Acquire Property or a Landholding Licence. The property must also qualify for foreign ownership, which means meeting the ARV thresholds set by the government.

How long does the entire buying process take for a non-Bermudian?

The purchase process for non-residents typically takes between six to twelve months. The lengthiest part of the process is usually obtaining the Acquisition Licence, which can take between six and nine months to be approved. Buyers should factor in additional time for completing due diligence, title searches, contract negotiations, and closing formalities.

Are there any taxes on buying or owning property in Bermuda?

While Bermuda does not impose income, inheritance, or capital gains taxes, you will still be subject to stamp duty, property taxes based on ARV, and fees associated with the Alien Landholding Licence. Stamp duty is calculated on a sliding scale based on the purchase price — check current rates with your attorney, as these are reviewed periodically.

Can I rent out my Bermuda property after purchase?

Rental income is permitted but must comply with reporting requirements. Engaging a local property manager is recommended to optimise income and ensure compliance. Crucially, a permit from the Minister for the Cabinet Office will be required before renting — this is a step that must not be overlooked.

Does buying property in Bermuda give me the right to live there?

No. Owning property in Bermuda does not grant you residency or the right to live full-time on the island. Separate immigration processes exist for work permits, long-term residency, or economic contribution routes, all of which require legal consultation.

What is the Economic Investment Residential Certificate and who qualifies?

With an investment of at least US$2,500,000 (through a variety of means, including real estate purchases), an application for an Economic Investment Residential Certificate (EIRC) can be made to the Bermuda Government. A successful application grants the international buyer an EIRC, enabling them to own condominium property or a house and have residency in Bermuda.

Do I need a notary to buy property in Bermuda?

Bermuda operates under a common-law legal system based on English law, and there is no requirement for a civil-law notary public in property transactions — unlike in many continental European countries, for example. Instead, a Bermudian barrister and attorney handles all conveyancing, title verification, and documentation. All practising lawyers must be members of the Bermuda Bar Association.

Can I get a mortgage in Bermuda as a non-Bermudian?

Mortgage options differ for residents and non-residents. Local banks and international lenders offer financing, though non-residents may face stricter lending criteria. Interest rates and repayment terms in 2025 are competitive, but it is essential to budget for insurance, maintenance, and utility costs. Local acquisitions are most commonly funded by a Bermuda-licensed bank, and it is relatively rare for an overseas bank to lend funds on the security of a Bermuda asset. Arrange pre-approval early.