Bermuda – Cost of Living

What is the local currency in Bermuda?

The official currency of Bermuda is the Bermudian Dollar, with the currency code BMD. Bermuda introduced its decimal currency in the form of a dollar on 6 February 1970. The link between the Bermudian dollar and the pound sterling was broken on 31 July 1972, allowing Bermuda to align to a one-to-one exchange rate with the US dollar.

Since 1972, Bermudian law has required that local businesses charge prices in Bermudian dollars which, if paid in US dollars, must be accepted at a rate of 1:1. In practice, this means that USD and BMD circulate side by side. Because the BMD is pegged exactly 1:1 to the USD, you do not need to worry about complex currency conversions while shopping, and you will often receive change in a mix of BMD and USD.

Establishments do not usually accept GBP or Euros. If you are arriving from outside the USA, the simplest approach is to carry USD, which is accepted everywhere, or to withdraw BMD from local ATMs on arrival. Note that BMD is not traded internationally, so it cannot easily be converted back to other currencies once you leave the island.

How does Bermuda’s cost of living compare to the UK and USA?

Bermuda consistently ranks as one of the most expensive places to live in the world, and in 2025 the cost of living remains high due to its reliance on imports, limited land for development, and a high standard of living. Everyday essentials such as food, household items, and personal care products can cost significantly more due to import duties and logistical constraints.

The cost of living in Bermuda is, on average, 91.1% higher than in the United States, and rent is, on average, 186.0% higher than in the United States (as of 2026). By comparison, the cost of living in Hamilton, Bermuda is about the same as in London — meaning that while Bermuda feels dramatically more expensive than most of the USA, those relocating from London may find the general price levels broadly familiar, even if specific categories like rent are steeper.

The cost of living in Bermuda rose 1.1% in November 2024 compared with the same month a year earlier, according to the latest Consumer Price Index released by the Department of Statistics. Key contributors to the year-on-year increase included a 3.3% rise in the Health and Personal Care division, a 2.5% increase in food prices, rents climbing 2%, the Education, Recreation, Entertainment and Reading category rising 1.5%, and Household Goods, Services and Supplies edging up by 1.3%.

What are the housing costs in Bermuda?

Housing is the largest expense for most expats. Apartments may start at $2,500 per month, while luxury homes can cost $8,000 or more, with prices depending on location, size, and amenities (as of 2025). Properties closer to Hamilton, the capital, or near the coastline command the highest premiums.

The cost of housing in Bermuda is generally quite high, with the average price for a single-family home ranging from $500,000 to $2 million, and the average cost of renting a one-bedroom apartment ranging from $1,500 to $3,000 per month — though more central or recently refurbished properties sit at the higher end of that range. Consider shared rentals or negotiating off-peak leases to lower housing costs.

What does food cost in Bermuda?

Grocery prices in Bermuda are significantly elevated compared to most countries because almost all food is imported. Expect to pay $10–$12 for a gallon of milk or $8 for a loaf of bread in local supermarkets (as of 2026). Shopping at local markets and cooking at home helps manage grocery bills.

Food prices rose 3.6% year-on-year as of April 2024, according to Bermuda’s Consumer Price Index. Eating out at a mid-range restaurant typically costs $30–$60 per person before tip, making regular restaurant dining a significant budget line. Cooking at home using local produce where available — such as fish from local vendors — can meaningfully reduce costs.

What are utility costs in Bermuda?

Utility costs in Bermuda are above average by international standards. Fuel and energy costs rose 6.4% in April 2024 compared with the same period in 2023, making this one of the fastest-rising household expense categories on the island. Air conditioning, which is commonly used year-round in Bermuda’s subtropical climate, contributes significantly to electricity bills.

Basic utilities in Bermuda — including electricity, heating, cooling, water, and garbage for an 85m² apartment — cost an average of around £187 (approximately $235) per month (as of 2026). Internet and mobile services are provided by a small number of providers and tend to be priced at a premium, similar to other small island economies.

What are transport costs in Bermuda?

Transportation costs can be high in Bermuda, as there is no public transportation system for private vehicles and most people rely on taxis or alternative forms of transport. Private car ownership by non-Bermudians is restricted; most residents use mopeds, electric scooters, or bicycles alongside the public bus and ferry network.

A day pass for public transport costs around $19 (as of 2026), making it the most economical option for occasional use. Bermuda’s buses do not accept cash; you must use a transportation pass, tokens, or a pre-paid card, which can be purchased at the central terminal in Hamilton or at various post offices. Taxis are widely available but expensive, and many drivers prefer cash payment.

What does leisure cost in Bermuda?

Bermuda’s leisure scene — from beach activities and water sports to dining out and cultural events — is world-class but priced accordingly. The Education, Recreation, Entertainment and Reading category of Bermuda’s Consumer Price Index rose 1.5% year-on-year as of November 2024. Many of Bermuda’s beaches and nature trails are free, which offers some relief on the leisure budget.

A gym membership typically costs $80–$120 per month. Cinema tickets run around $15–$20 per person. Water sports and boat excursions, a major part of island life, can range from $50 for a snorkelling trip to several hundred dollars for a private charter. Families should also factor in schooling costs, as private international schools are the most common choice for expat children and fees can reach $20,000–$40,000 per year.

What are clothing and household goods costs in Bermuda?

Clothing and household goods are more expensive in Bermuda than in most comparable jurisdictions, as virtually all items must be imported and are subject to customs duties. Clothing and footwear increased by 1.3% on a monthly basis as of April 2024, according to Bermuda’s Consumer Price Index. International brands are available in Hamilton’s shops, though the range is narrower than in larger cities.

Household Goods, Services and Supplies edged up by 1.3% year-on-year as of November 2024. Many longer-term residents choose to order clothing and household items from overseas retailers — particularly those shipping from the USA — and have them delivered via freight forwarders to keep costs manageable. Bermuda Post Office handles a substantial volume of personal imports.

What are the most common forms of payment in Bermuda?

Credit cards are the primary method of payment in Bermuda, with Visa and Mastercard being accepted at almost every hotel, restaurant, and retail shop. American Express is also widely accepted, though some smaller boutiques or local cafés may not take it. Discover cards are generally not accepted on the island.

Residents are slowly being weaned off using cash in favour of contactless or online payments, with everything from paying utility bills to online shopping now being done through digital means, as part of a broader effort to modernise Bermuda’s financial services. Solutions such as Apple Pay and Google Pay are rising in popularity, especially among younger users, and are typically associated with an existing bank account or credit card, offering a seamless and secure way to pay.

Cash remains important for some situations: public transportation and taxis often require exact change or prefer cash, street vendors and markets may be cash-only, and local cafés and family-run stores sometimes prefer cash. Cash is generally accepted just about everywhere in Bermuda, whether at a hotel or buying from a street stall.

Bank transfers are normally used for larger purchases and for making ongoing payments such as rent or utilities. The vast majority of locals have credit and debit cards issued by the main banks operating on the island, including HSBC Bermuda, Clarien Bank, and Butterfield. When using an international card, be aware that some issuers apply foreign transaction fees of around 3%–3.5% per transaction — it is worth checking with your card provider before you arrive.

Frequently asked questions

How much does a single person need to live comfortably in Bermuda?

A single expat should budget $4,000–$6,000 per month to live comfortably in Bermuda (as of 2025), depending on lifestyle. This figure includes rent, food, transport, utilities, and a modest leisure allowance. Those living more frugally — sharing accommodation and cooking at home — may manage on less.

How much does a family of four need per month in Bermuda?

The estimated monthly costs for a family of four are $7,955, excluding rent (as of 2026). When rent for a three-bedroom home is added — which can easily reach $7,000–$10,000 per month — total household expenditure for a family of four can exceed $15,000–$18,000 per month at comfortable living standards.

Is the US dollar accepted in Bermuda?

The Bermudian Dollar (BMD) is the official currency and is widely accepted, including by government offices and public transport. It is pegged 1:1 with the US Dollar, and USD is also accepted everywhere. If you pay in USD, you may receive change in BMD.

Why is the cost of living so high in Bermuda?

The cost of living remains high due to the island’s reliance on imports, limited land for development, and a high standard of living. Everyday essentials such as food, household items, and personal care products can cost significantly more due to import duties and logistical constraints. There is no income tax in Bermuda, which can partially offset these costs for higher earners.

Can I use contactless and mobile payments in Bermuda?

Mobile payment solutions such as Apple Pay and Google Pay are rising in popularity, especially among younger users who are fans of tap-to-pay experiences. Most modern retail establishments in Hamilton and tourist areas support contactless payments. However, smaller vendors, taxis, and market stalls may still prefer cash.

Are there ATMs readily available in Bermuda?

ATMs are easy to find in towns. They are readily available in Hamilton, at the airport, and in resort areas. Stick to ATMs located inside banks or commercial centres for withdrawals to minimise the risk of fraud and to access the most reliable machines. International cardholders may be charged ATM fees by both the local bank and their home institution.

How does Bermuda’s cost of living compare to London?

The cost of living in Hamilton, Bermuda is broadly about the same as in London. However, the composition of costs differs: housing in Bermuda tends to be even more expensive relative to London for comparable properties, while Bermuda offers no public transport infrastructure equivalent to the London Underground, making day-to-day logistics pricier. The absence of income tax in Bermuda is a key financial differentiator.

What is the best way to manage money as an expat in Bermuda?

Most long-term residents recommend a blend of payment methods: a credit or debit card (Visa or Mastercard) for everyday spending at shops and restaurants, some cash in BMD for taxis, markets, and small vendors, and a bank transfer arrangement for regular large outgoings like rent and utilities. There are several ways to reduce living expenses in Bermuda: consider shared rentals or negotiating off-peak leases to lower housing costs, and shopping at local markets and cooking at home helps manage grocery bills.