Rock investment in Bermuda real estate is not so favorable for foreigners
Posted On August 6, 2022
The tourism industry has become the second largest economically lucrative market for Bermuda. In addition to this, Bermuda’s financial boom is sustained due to low direct taxes on corporate or personal income.
Although the financial aspects are quite positive for Bermuda, accommodation has become an issue for the locals. For this reason, the Bermuda listing market is not as attractive to international real estate. Bermuda rents are quite attractive to buyers, with the figure hovering around $2.6 million for an average property with a minimum tax of 22 percent. The total amount amounts to $3 million, which is cheaper compared to international rentals. But this price is completely out of the question as Bermuda real estate for sale is held pretty much only for Bermuda housing and accommodation. Due to this situation, the Bermuda International Listings and International Exchange are owned by the Government to regulate and limit foreign ownership of land.
Bermuda real estate is suffering due to foreign occupation because Bermuda is 2 miles wide and 22 miles long. Bermuda’s land area is only about 21 square miles, which is only one-third the size of Washington DC. The Bermudian territory barely provides accommodation for its 66,000 citizens. So this leaves no room for non-Bermudians. Although there are about 37% of non-Bermudans owning property in Bermuda, this trend has been limited to creating more opportunities for the local population.
To restrict the Bermuda market to local people only, a law was introduced that if a person is not Bermudian then they are restricted. If a person still wants to be a native of this country and buy property, then he or she will have to marry the opposite sex and stay married for at least 10 years. In addition to this, restrictions on the sale of Bermudians have been issued which include the following points:
1) Under Bermuda law, the local Bermudian could transfer or sell the property to other Bermudians only.
2) Non-Bermudians can sell their property to other non-Bermudians or Bermudians.
3) There is a limited value of $2 million set for non-Bermudians and they cannot purchase any property below this value.
4) The purchase of raw land is prohibited to non-Bermudians.
5) The restricted person referred to in the previous law includes corporations, trusts and partnerships.
6) If a non-Bermudian owns property, they should not think of it as a path to citizenship.
It’s no wonder real estate in Bermuda is a treat for everyone, but the limitations and structure of this island make all the difference.