Bermuda – Buying or Importing a Car

How do I buy a car in Bermuda?

Buying a car in Bermuda is possible either through a local dealership or from a private seller. The local market carries a range of new and second-hand vehicles, though choice is more limited than in larger countries given the island’s size and strict import rules. New vehicles sold through dealerships in Bermuda have already cleared customs, so the import duty is built into the listed price — similar to how new cars are sold in many island territories worldwide.

Adults with a qualifying local residence may own and drive only one private car for their household. Only one pre-approved (for size and engine capacity) private four-wheeled vehicle per person, family, or household unit is permitted in Bermuda — and only when the person concerned qualifies by both residence and an appropriately registered home or apartment unit. This is one of the most significant restrictions for anyone relocating to the island.

Residents who qualify include locals, those on approved work permits and their dependants, and those buying or leasing a property or who are retired. If you do not yet hold any of these qualifying statuses, you will not be eligible to register a private car.

When buying a used car locally, consumer protections are minimal. There are no consumer laws in Bermuda offering consumers any protection on used cars. Before buying, it is important to confirm that the person selling the car is the present sole legal owner, and that they can prove this by producing the registration certificate, insurance certificate, and driving licence — all in the same name.

Always have a good garage carry out a thorough independent inspection for roadworthiness and make any offer conditional on this. It will cost money but is well worth it. Getting an indication from your insurer on the vehicle’s market value is also advisable.

What do foreign nationals need to know about buying a car in Bermuda?

Foreign nationals living in Bermuda on a valid work permit are generally eligible to own a car, but eligibility is tied to both immigration status and the type of accommodation you occupy. Only one private vehicle per household unit is allowed, and only when the person concerned qualifies by both residence and an appropriately registered home or apartment. Residents qualifying include locals, work permit holders and their dependants, and those buying or leasing a property.

Those arriving to take up residence and wishing to bring a car from overseas should be aware of a specific duty relief mechanism. Proof that you have permission to live in Bermuda — such as a work permit or spousal letter — is required. If you are shipping a used car from overseas and claiming duty relief, you will need a Transfer of Residence Certificate. This certificate must be requested from a customs officer at the airport when you arrive to take up residence. There is no fee for the certificate, and it is processed immediately.

Financing a vehicle purchase as a foreign national can be more challenging than in jurisdictions with well-established expat lending markets. It is advisable to consult local banks in advance about their requirements for non-citizen borrowers. Many newly arrived residents find that purchasing outright is the more straightforward route, at least initially.

It is essential to confirm that the person selling the car is the present sole legal owner and can prove this through the registration certificate, insurance certificate, and driving licence — all in the same name as the owner. Once you have agreed to buy a vehicle in writing, you will be held to that commitment.

How do I import a vehicle into Bermuda?

Importing a private car to Bermuda is subject to some of the most stringent rules in the region. Unlike countries such as Australia or Canada, where used vehicles can generally be imported freely subject to compliance checks, Bermuda’s rules are highly prescriptive about ownership history, vehicle age, and physical dimensions.

You must be the first owner of the vehicle and have owned it for not more than six months prior to the date of shipment to Bermuda. Vehicles which have had more than one owner cannot be imported into Bermuda. This includes demonstration models (demos), which are considered used.

Before importing any vehicle into Bermuda, you need to advise the Transport Control Department (TCD) of the specific make and model, vehicle specifications including length and width, weights, engine size, and horsepower, so that the import can be approved. Critically, this approval must be obtained before you purchase the vehicle abroad.

Certain cargoes are required to be fumigated prior to importation due to the increased number of insect, spider, and soil interceptions found at the ports of entry. Cargoes requiring an import permit and fumigation include used boats, bikes, cars, trucks, tractors, and other vehicles. All fumigation, steam-cleaning, or other treatment costs — whether carried out in the country of origin or locally — are the responsibility of the importer.

What are the vehicle size and specification limits for Bermuda?

Bermuda’s narrow roads and strict vehicle policy mean that all imported private cars must conform to tight physical limits. The maximum length allowed is 175 inches; the maximum width allowed is 71 inches; the maximum engine capacity allowed is 2,500 cubic centimetres; and the maximum power-to-weight ratio allowed is 10.5 kilograms per kilowatt. Many popular large SUVs and full-size saloon cars sold in larger markets will not meet these specifications, so always verify measurements before purchasing a vehicle with the intention of bringing it to Bermuda.

Vehicles are classified by length into eight categories. Class is determined by the length of the vehicle, and no class of vehicle must exceed 71 inches in width. Classes range from Class A (up to 138 inches) through to Class H (exceeding 169 inches up to 175 inches).

Imported cycles must have a maximum engine capacity of 150cc. Motorcycles above this threshold are not permitted for import as private vehicles.

What customs duties and taxes apply to imported vehicles?

Customs duty in Bermuda is among the highest in the world for vehicles, reflecting its role as a primary source of government revenue. Bermuda’s Customs Department collects import duty, which makes up approximately twenty percent of the government’s revenue. Their valuation rules for imported goods have been adopted from World Trade Organisation valuation rules, and customs duty is normally calculated on an ad valorem basis on the transaction value of goods.

Vehicles principally designed for the transport of passengers are normally dutiable at 75% on the first $10,000 of value and 150% on any value in excess of $10,000. Vehicles principally designed for the transport of goods are dutiable at 33.5%. The duty on motorcycles is also 33.5%. Vehicles with ten or more seats and hybrid vehicles also qualify for the lower 33.5% rate, making hybrids a cost-effective import option.

A 7.5% VAT is applied on the CIF value — that is, the combined cost, insurance, and freight value of the vehicle. Always factor in shipping costs when calculating the full landed cost of an imported vehicle, as duty is assessed on this total figure.

Duty exemptions may apply for those moving to Bermuda or returning after more than one year abroad. Documentation such as a Transfer of Residence Certificate is necessary for claiming relief. Confirm the current eligibility criteria with Bermuda Customs before finalising your plans.

What is the step-by-step process for importing a vehicle?

The import process requires engaging the Transport Control Department (TCD) and Bermuda Customs at several stages. The key contact for vehicle imports is the Transport Control Department (TCD): gov.bm/importing-vehicle, P.O. Box HM718, Hamilton HM CX, Bermuda. For customs duty enquiries, visit the Bermuda Customs Department: gov.bm/customs. For used vehicle fumigation and import permits, visit gov.bm — Import used equipment and vehicles.

1. Check eligibility. Confirm that you qualify to own a private vehicle in Bermuda. Only one private car per household is permitted, and ownership is tied to qualifying residential status. Foreign nationals should ensure their work permit, spousal letter, or other residency documentation is in order before proceeding.
2. Verify vehicle specifications. Confirm that the vehicle does not exceed the maximum length of 175 inches, maximum width of 71 inches, maximum engine capacity of 2,500cc, and maximum power-to-weight ratio of 10.5 kilograms per kilowatt.
3. Obtain TCD pre-approval before purchase. Advise the Transport Control Department of the specific make and model, vehicle specifications including length and width, weights, engine size, and horsepower. The Director must approve the application in writing prior to the purchase of the car.
4. Assemble your pre-import documents. The application may be submitted by mail or by hand. You must include a personal letter and documents such as the manufacturer’s showroom brochure (which normally contains curb weight and engine output). An emissions certificate is also required before importation.
5. Purchase the vehicle and arrange shipping. Once written approval has been received from the TCD, purchase the vehicle and arrange shipping to Bermuda. The main port of entry is Hamilton. Shipping typically takes 24–36 days via Roll-on/Roll-off (RoRo) vessel, with monthly departures available.
6. Obtain a Transfer of Residence Certificate (if claiming duty relief). If shipping a used car from overseas and claiming duty relief, request a Transfer of Residence Certificate from a customs officer at the airport when you arrive to take up residence. There is no fee, and it is processed immediately.
7. Clear customs and pay duty. The Collector of Customs will require a letter of approval before the vehicle will be released. Pay all applicable import duty and any VAT based on the vehicle’s CIF value.
8. Submit documents for TCD initial inspection. The following documents are required for the initial inspection by TCD: bill of sale, certification of title, overseas vehicle registration, and the owner’s handbook and vehicle brochure.
9. Pay registration fees. You must pay the standard fees for importation and initial registration for all cars — including licence plates, registration fee, and inspection fee. Check the official TCD website for current fee schedules, as these are subject to change.

How do I sell a car in Bermuda?

Selling a car in Bermuda follows a defined procedure administered through the Transport Control Department. The process centres on the transfer test — a mandatory inspection that the vehicle must pass before ownership can legally change hands.

To sell your car, you will need to provide the new owner with a transfer test certificate, a bill of sale, and the old licence. The seller is responsible for ensuring the vehicle is transfer tested before handing it over.

The buyer is responsible for the transfer registration fee, which includes the cost of the transfer test. If you are keeping your licence plate number for a new car, the old car can be transfer tested without its number plates.

The sale must be completed before the car’s transfer test certificate expires — certificates are only valid for one month after the test was conducted. It is therefore important to arrange the transfer test close to the point of sale and not leave the paperwork until the last minute.

The owner (seller) of the vehicle must complete the Bill of Sale and give the completed document to the new owner. The buyer must then come into TCD with valid insurance, the Bill of Sale, an Assessment Form signed by the landlord (if required), and the transfer slip from the passed test.

To protect yourself as a seller, make sure the buyer gets the old car transfer registered quickly — either by having the car transfer tested before handing it over, or by arranging to meet the buyer at TCD to complete the transfer registration together.

Note that the buyer purchasing a second-hand private car will take it on as their only permitted private car for their household. The vehicle must be insured, licensed, and registered in the new owner’s own name.

Frequently asked questions

Can I own more than one car in Bermuda?

No. Adults with qualifying local residence may own and drive only one private car for their household. Only one pre-approved private four-wheeled vehicle per person, family, or household unit is allowed in Bermuda. Only local medical doctors may own a second car.

Can tourists rent a car in Bermuda?

Tourists are not permitted to rent cars or drive other people’s vehicles while in Bermuda. Visitors typically travel by taxi, public bus, ferry, or rented scooter/moped, which are widely available across the island.

Can I import a used car from abroad?

You must be the first owner and have owned the vehicle for not more than six months prior to the date of shipment to Bermuda. Vehicles which have had more than one owner cannot be imported. In practice, this means most people import brand-new vehicles rather than used ones from overseas.

Are hybrid vehicles subject to lower import duty?

Yes. Standard passenger vehicles are dutiable at 75% on the first $10,000 and 150% on the remaining value, while vehicles with ten or more seats and hybrids are charged at 33.5%. This makes hybrid vehicles a significantly more cost-effective choice for those importing a car.

How long is a transfer test certificate valid when selling a car?

A transfer test certificate is valid for one month from the date the car underwent examination. The sale must be completed before the certificate expires. If the sale falls through or is delayed, a new test will need to be arranged.

What documents do I need to submit to the TCD when importing a vehicle?

The documents required for the initial inspection by the TCD include: a bill of sale, certification of title, overseas vehicle registration, and the owner’s handbook and vehicle brochure. An emissions certificate and a personal letter are also required as part of the pre-import application.

Is there a duty exemption available for people relocating to Bermuda?

Duty exemptions may apply for those moving to Bermuda or returning after more than one year abroad. Documentation such as a Transfer of Residence Certificate is necessary for claiming relief. This certificate must be requested from a customs officer at the airport upon arrival to take up residence. There is no fee for the certificate.

Where can I find official information on vehicle registration and import rules?

The primary government resources are the Transport Control Department’s vehicle import page and the Bermuda Customs Department website. The TCD’s mailing address is P.O. Box HM718, Hamilton HM CX, Bermuda. Always check these official sources for the most current fees, processing requirements, and approved vehicle specifications before making any purchase.