Bermuda is a very desirable location for overseas purchasers looking for a second home.
The Island's semi-tropical climate, rich colonial heritage, stable Government, enviable GDP and internationally recognized financial center has made it a beacon for the rich and the famous.
Accessibility is another key factor – less than two hours from New York and less than seven from London, Bermuda is ideally located for busy executives on the move.
However, before you consider the purchase of one of the many alluring, high-end listings currently available on the market there are a number of things you need to consider before buying property in Bermuda.
The Bermudian ethos – While foreign nationals are most welcome to invest in Bermuda and own private property, it should be fairly noted that it is the mission of the Department of Immigration to 'preserve the majority of land in Bermuda for ownership by individuals who possess Bermuda status'. This is clearly reflected in all of the legislation governing the sale of property to non-Bermudians.
The property’s Annual Rental Value (ARV)- Not to be confused with the property’s actual value, the property’s ARV is determined by the Bermuda Government and is used to assess annual Land Taxes.
The assessment is also used to determine which properties are available for purchase by non-Bermudians. Currently non-Bermudians may only purchase private residence with an ARV of no less than $177,000, or a condominium with an ARV of no less than $32,400.