Explore Bermuda real estate in 2025. Learn about buying property, foreigner eligibility, market trends, luxury homes, and costs. Ideal for US & global investors.

Bermuda Real Estate: An Exclusive 2025 Guide for International & US Buyers

Dreaming of turquoise waters, pink sand beaches, and a sophisticated island lifestyle? Bermuda has long captivated the imagination of discerning property investors worldwide, including many from the United States. As of May 2025, the Bermuda real estate market continues to offer a unique blend of exclusivity, stability, and financial allure. This comprehensive guide will walk you through everything you need to know about acquiring your slice of paradise.

For international buyers, particularly those from the US, navigating a foreign property market like Bermuda’s requires careful planning and understanding of specific regulations. The island maintains a high-value, controlled market, ensuring its desirability and the preservation of its unique character. This overview provides key insights into market trends, purchasing processes, and financial considerations.

 

Why Choose Bermuda Real Estate in 2025? The Enduring Appeal

What makes Bermuda such a coveted location for property investment, especially now? It’s more than just the stunning scenery.

Unmatched Lifestyle and Exclusivity Bermuda offers an unparalleled quality of life. Think world-class golf courses, sailing, diving, and a vibrant yet refined social scene. Its exclusivity is partly due to its compact size and controlled development, making property ownership a mark of distinction.  

Economic and Political Stability The island boasts a stable political environment and a robust economy, heavily influenced by its status as a leading global hub for international business and reinsurance. This stability underpins property values and investor confidence.

Favorable Tax Environment One of the most significant draws for Bermuda real estate investors is the island’s tax regime. There are no income taxes, capital gains taxes, dividend taxes, or inheritance taxes on real estate for most owners. This can translate to substantial savings compared to many other jurisdictions.

Proximity and Accessibility (Especially for US Buyers) Located just a short flight from major US East Coast cities (around 2 hours from New York or Boston), Bermuda is remarkably accessible for Americans seeking a convenient luxury retreat or a strategic base.  

The Bermuda Real Estate Market: 2025 Snapshot

The Bermuda real estate market in 2025 is characterized by several key trends:

Continued Strength in the Luxury Segment High-net-worth individuals continue to be drawn to Bermuda, fueling demand for premium properties. Luxury homes, particularly waterfront estates and those in prestigious parishes, remain highly sought after.  

Increased International Interest Global investors, including a significant number from the US and Canada, are increasingly looking to Bermuda for its stability and lifestyle offerings. The Bermuda Dollar being pegged 1:1 with the US Dollar also simplifies transactions for American buyers.  

Focus on Sustainability Echoing global trends, there’s a growing interest in sustainable and eco-friendly properties. Buyers are increasingly looking for homes with green features and energy-efficient designs.

Controlled Inventory Bermuda’s government carefully manages property sales to non-Bermudians to preserve housing for its citizens. This means inventory for international buyers is limited, primarily to the higher end of the market, which helps maintain property values.  

Navigating Your Bermuda Property Purchase: A Guide for International Buyers

Buying property in Bermuda as a non-Bermudian (which includes US citizens) involves specific rules and a clear process. It’s a well-trodden path, but one that requires professional guidance.  

Who Can Buy? Eligibility for Non-Bermudians

Yes, non-Bermudians can purchase real estate in Bermuda, but there are important restrictions. The Bermuda government aims to protect the local housing market, so international buyers are generally restricted to purchasing properties above a certain value and type.  

You’ll typically need to be of good character and demonstrate financial standing.

Property Types Available to International Buyers

Non-Bermudians are generally eligible to purchase:

• Freehold Houses and Estates: These must have a minimum qualifying Annual Rental Value (ARV). As of early 2025, this ARV is typically $126,000. This means the market value of such homes often starts around $2.5 million to $3 million USD and can go much higher. The ARV is a value set by the government for land tax purposes and isn’t directly the achievable rental income.
• Condominiums: International buyers can typically purchase condominiums located within designated tourism developments or hotel-managed properties. For other condominiums, the minimum qualifying ARV is $25,800, but availability outside of tourism developments for general non-Bermudians (without Permanent Residency Certificates or strong local ties) is very limited. It’s crucial to verify the eligibility of any specific condominium unit.

International buyers are generally not permitted to purchase undeveloped land, with some exceptions for specific tourism projects. Non-Bermudians are usually limited to owning a maximum of two residential properties at any one time.  

The Crucial “License to Acquire”: Process and Fees

This is a critical step. Before a non-Bermudian can legally own property, they must apply for and be granted a “License to Acquire Real Estate” from the relevant Bermudian Minister.  

The Application Process:

• This is typically handled by your Bermudian lawyer.
• You’ll need to provide personal and financial references (banker’s reference, two personal character references).
• Details of the property you intend to purchase are required.
• There’s an application fee (around $1,706 as of recent data, potentially refundable if the license is granted and the license fee paid).

License Fees (payable upon grant): These fees are a significant part of the acquisition cost and are calculated on the purchase price:

• Freehold Houses: 12.5%
• Condominiums (general qualifying): 8%
• Condominiums within designated Hotel/Tourism Developments: 6.5%
• Permanent Resident Certificate (PRC) Holders: A lower rate of 6% applies.

The licensing process can take several months (typically 6-9 months, according to some sources), so factor this into your timeline.

The Buying Process Step-by-Step

1. Define Your Goals & Budget: Understand your reasons for buying and your financial capacity, including all associated costs.
2. Engage a Reputable Bermuda Real Estate Agent: Local agents have in-depth knowledge of properties available to international buyers and the intricacies of the market.  
3. Secure Financing (If Needed): While many international purchases are cash-based, financing is available through Bermudian banks. Getting pre-approval can strengthen your position. Expect to need a substantial down payment (often 20-30% or more for non-residents).
4. Appoint a Bermudian Lawyer: This is mandatory for non-Bermudian buyers. Your lawyer will handle due diligence, the license application, and the conveyance (transfer of ownership).  
5. Property Search and Viewings: Identify suitable properties that meet the eligibility criteria for international buyers.
6. Make an Offer: Once you find a property, your agent will help you submit a formal offer. Negotiation is common.
7. Sale and Purchase Agreement: If your offer is accepted, a Sale and Purchase Agreement is drawn up by the lawyers. A deposit (typically 10% of the purchase price) is usually paid at this stage and held in escrow.  
8. Apply for License to Acquire: Your lawyer submits this on your behalf.
9. Due Diligence: Your lawyer conducts thorough checks, including a title search to ensure the seller has clear ownership and there are no encumbrances.  
10. Closing: Once the license is granted and all conditions are met, the sale is completed, final payments are made, and ownership is transferred.

Navigating these steps, especially the legal and regulatory aspects, can be complex. For instance, US buyers exploring Bermuda real estate often seek comprehensive advisory services to navigate such international transactions and understand all implications. Resources like NexMove.us can provide valuable insights and connections for Americans looking at property opportunities, whether domestic or in select international locales.  

Key Financial Considerations for Bermuda Real Estate

Beyond the purchase price, several other costs and financial factors come into play.

Property Prices: What to Expect in 2025

As a luxury destination with limited supply for international buyers, Bermuda property prices are generally high.

• Eligible Houses: Often start from $2.5 – $3 million USD and can extend to $30 million+ for prime estates.
• Eligible Condominiums: Typically start from around $600,000 – $1 million USD for units in tourism developments, with prices varying based on size, location, and amenities.

Associated Costs: More Than Just the Sticker Price

• License Fee: As detailed above (6.5% to 12.5% of purchase price for non-Bermudians).
• Stamp Duty: This is a government tax on property transactions, charged on a sliding scale based on the property’s value. As of early 2025, the rates are approximately:
  • 2% on the first $100,000
  • 3% on the next $400,000 (up to $500,000)
  • 4% on the next $500,000 (up to $1,000,000)
  • 6% on the next $500,000 (up to $1,500,000)
  • 7% on the value exceeding $1,500,000 Stamp duty is often, by tradition, split equally between the buyer and seller, but this can be negotiated.  
• Legal Fees: Typically range from 1% to 2% of the purchase price, covering your lawyer’s services for due diligence, conveyancing, and license application. This is also often split.
• Real Estate Agent Commission: The standard commission is 5% of the sale price. This is usually paid by the seller, but terms can be negotiated.
• Bank Fees: If obtaining a mortgage, there will be associated bank charges.  

Rule of Thumb: Budget for an additional 10-20% of the purchase price to cover these various fees and taxes if you are an international buyer, with the License Fee being the largest component.

Ongoing Expenses: Ownership Costs

• Annual Land Tax: All property owners in Bermuda pay an annual land tax. This is based on the property’s ARV and uses a tiered percentage system. Rates are higher for higher ARV properties. There are different bands for private dwellings, commercial properties, and tourist properties.  
• Property Insurance: Essential, and can be significant given Bermuda’s location in the hurricane belt.
• Maintenance and Utilities: These costs are generally high in Bermuda due to the need to import many goods. Expect electricity, water (many homes rely on rainwater collection and tanks), and general upkeep to be more expensive than in many parts of the US.
• Cost of Living: Bermuda is known for its high cost of living. Groceries, dining out, and transportation are all premium-priced.  

The Tax Advantage: A Major Draw

It’s worth reiterating: Bermuda does not levy:

• Income tax on rental income from your property (for most individuals).
• Capital gains tax when you sell your property.
• Inheritance tax on the property.
• Wealth tax.

This tax efficiency is a cornerstone of Bermuda’s appeal to international property investors.  

Popular Parishes and Lifestyle Insights

Bermuda is divided into nine parishes, each with its unique charm. Some popular areas for luxury Bermuda real estate include:  

• Paget Parish: Known for its beautiful homes, proximity to Hamilton (the capital), and lovely beaches like Elbow Beach.  
• Warwick Parish: Offers a mix of stunning coastline, family-friendly neighborhoods, and renowned golf courses.
• Tucker’s Town (St. George’s Parish): An ultra-exclusive enclave with some of the island’s most luxurious estates and private clubs.
• Hamilton Parish: Offers beautiful waterfront properties and a more tranquil setting while still being accessible.  
• Southampton Parish: Home to iconic pink sand beaches like Horseshoe Bay and luxury resorts.  

Your choice will depend on your lifestyle preferences – whether you seek seclusion, proximity to amenities, or a golfing or beach-centric life.

Potential Challenges and How to Overcome Them

While attractive, investing in Bermuda real estate comes with considerations:

• Strict Regulations for Foreigners: The licensing process and property restrictions require patience and expert guidance.
  • Solution: Work with experienced Bermudian lawyers and real estate agents.
• High Entry Costs: The combination of property prices and acquisition fees means a significant upfront investment.
  • Solution: Thorough financial planning and understanding all costs involved.
• Limited Inventory: The pool of properties available to international buyers isn’t vast.
  • Solution: Be prepared for a potentially longer search and work closely with an agent who has access to eligible listings.
• High Cost of Living & Maintenance: Ongoing expenses can be substantial.
  • Solution: Factor these into your long-term budget.

The Path to Residency Through Property Investment

Owning property in Bermuda can facilitate longer stays. While property purchase alone doesn’t automatically grant citizenship, it can support applications for various forms of residency:  

• Residential Certificate (RC): High-net-worth individuals who purchase qualifying property may be eligible to apply for a Residential Certificate. This allows the holder (and qualifying dependents) to reside in Bermuda year-round indefinitely, subject to meeting certain criteria. This is a popular route for those looking to make Bermuda their primary or secondary long-term home.  
• Economic Investment Certificate (EIC): Introduced more recently, the EIC program offers a path to residency for individuals making a substantial qualifying economic investment in Bermuda (minimum $2.5 million USD across various sectors, including real estate, Bermudian businesses, or charitable organizations). Holders of an EIC can apply for a Residential Certificate after a five-year period.  

It’s vital to seek legal advice on immigration matters if residency is a key objective.

Frequently Asked Questions (FAQs)

Can a US citizen buy property in Bermuda? Yes, US citizens (as non-Bermudians) can buy property in Bermuda, but they are subject to restrictions. They must obtain a License to Acquire and can generally only purchase higher-value properties or specific types of condominiums available to international buyers.

What is the minimum investment for Bermuda real estate for foreigners in 2025? There isn’t a single “minimum investment” figure, as it depends on the Annual Rental Value (ARV) set by the government. For houses, the ARV threshold means properties typically start from $2.5 – $3 million USD. For eligible condominiums, prices might start lower, often around $600,000-$1 million in tourism developments.

Are there property taxes in Bermuda? While there’s no annual “property tax” in the way many countries have it, there is an annual Land Tax based on the property’s ARV. There is also a one-time Stamp Duty payable on purchase and the significant License Fee for non-Bermudians.

How long does it take to buy property in Bermuda as a foreigner? The process can take several months, largely due to the time required for the License to Acquire application, which can be 6-9 months. The legal and due diligence processes also add time.  

Is Bermuda real estate a good investment in 2025? For those seeking a stable, luxury market with significant tax advantages and an exceptional lifestyle, Bermuda can be an excellent investment. Its controlled supply and enduring appeal to high-net-worth individuals tend to support property values. However, like all investments, it requires careful research and consideration of individual circumstances.

Final Thoughts on Your Bermuda Real Estate Journey

Investing in Bermuda real estate is more than just a financial transaction; it’s an investment in a unique and coveted lifestyle. The island offers a blend of sophisticated charm, natural beauty, and a secure environment that continues to attract discerning buyers from around the globe, especially the US.  

While the process for international buyers involves navigating specific regulations and higher entry costs, the rewards – a stunning home in a tax-efficient, stable, and exclusive location – can be immense. As of May 2025, the market remains robust, particularly at the luxury end. Success hinges on thorough research, professional guidance from local experts, and a clear understanding of your personal and financial goals. For US-based individuals beginning to explore such significant international property decisions, initial guidance and broader market understanding can be invaluable. Companies like NexMove, reachable through their website, may offer resources or referrals relevant to Americans considering overseas investments.

Take the Next Step

Ready to explore the possibilities of owning property in Bermuda or need guidance on complex real estate transactions? For general information and resources, especially if you are a US-based buyer considering international options, platforms like NexMove can be a helpful starting point. For more information, visit https://nexmove.us/. You can typically find contact details on their website to inquire about their services or how they might assist with your broader real estate goals.