Please note the following guidelines and procedures with regard to the purchase of property in Bermuda by international purchasers or permanent resident certificate holders.
Moongate Realty is a boutique real estate brokerage that provides professional services to both local and international clients. Assistance with buying, selling and leasing property is the core of our business. We also provide property management and vacation rental services.
Non-Bermudians (International Purchasers) or Permanent Resident Holders (allowed permanent residency but not citizenship) may only purchase property that is qualified by a minimum Annual Rental Value (“ARV”).
The ARV is used to determine land tax and is not necessarily a reflection of market value.
The minimum ARV for houses is $177,000 and $32,400 for condominiums. In addition, condominiums available to Non-Bermudian purchasers must be in “designated developments”.
The effect of these guidelines means that only the highest valued properties are available for Non-Bermudian purchasers.
Homes with a qualifying Annual Rental Value start in the price range of $3.5 million for homes and condominiums start at around $800,000.
Non-Bermudian purchasers must obtain a license from the Minister of Labour and Home Affairs. Their application is made through an attorney of their choosing. License fees are 8% of the purchase price of a house and 6% for a condominium. Current License Fees will increase as of September 30, 2015 to 12.5% for a house and 8% for a condominium. All properties within a designated resort development are 6.5%.
License fees for Permanent Resident Certificate Holders (“PRC”) purchasers will be 4% for a house and a condominium. The License Fee will increase as of September 30, 2015 to 6%.
Applicants are required to provide a banker’s reference and personal references (preferably Bermudian if possible).
The license application fee (which is refunded when the license is granted) is currently $1,416.
Government has approved Non-Bermudian purchasing by application in Trust subject to (a) locally licensed Trustee, (b) limited to one generation and (c) after death, the property must be sold within 2 years.
You are required to engage the services of a real estate attorney when purchasing a home, you. A lawyer will assist in ensuring that the mortgage documents are in order, review the sales and purchase agreement on your behalf and represent your best interests during this process, such as a mortgage commitment letter, good faith estimates of closing costs, escrows and proper calculation of lender’s fees. You may to hire an attorney who regularly handles real estate transactions. Check with family, friends, your real estate agent or the yellow pages. In addition to reviewing the contract with you, your lawyer will negotiate contract changes with the seller’s lawyer and provide notice to the seller’s lawyer regarding the results of such items as financing discussions, engineering surveys and other agreed conditions to the contract. He will also liaise with the lending institution, undertake the title search and disburse the funds at closing.
