Bermuda, with its dazzling pink-sand beaches, lush landscapes, and exclusive luxury homes, continues to attract dreamers and savvy investors from around the world. However, buying real estate in Bermuda as a non-Bermudian is a unique journey—and it’s not always straightforward. In fact, according to Bermuda's Department of Immigration, less than 5% of the island’s property inventory is available to foreign buyers.
That said, with the right guidance, owning property in Bermuda is absolutely achievable. Whether you are considering a luxury waterfront villa in Tucker's Town or a stylish condo in Hamilton, this 2025 guide will walk you through eligibility, financing, property types, and the best areas to invest. If you are ready to make your island dream a reality, keep reading.
Understanding Bermuda’s Property Laws for Non-Bermudians
For non-Bermudians, understanding Bermuda’s real estate laws is crucial before entering the market. Non-residents are restricted to purchasing only select properties, which typically have higher Annual Rental Values (ARVs). These are usually luxury properties, condos, or hotel residences that meet certain valuation thresholds.
To purchase a property, non-Bermudians must obtain a Bermuda Acquisition License. This license can take between six and nine months to process and typically costs between 12.5% and 18% of the property’s value. The application is comprehensive and requires background checks, proof of financial capability, and a detailed purchase plan.
Recent regulatory updates in 2025 have streamlined some aspects of the process, particularly for buyers looking at properties with sustainable or eco-friendly designs. However, the government continues to regulate foreign ownership carefully to protect local housing stock. It is highly advisable to work with an experienced local real estate agent who can help you navigate this regulatory landscape smoothly.
Types of Properties Available to Non-Bermudians
Although non-Bermudians have more limited choices compared to residents, there is still a wide selection of prestigious properties available. Houses available to foreigners typically include luxury estates and waterfront properties located in highly desirable areas. Condominiums, particularly in Hamilton and Southampton, present more accessible entry points for foreign buyers and often come with amenities such as pools, gyms, and concierge services.
Hotel residences offer a hybrid model, allowing ownership of units within hotel resorts. This setup grants access to hotel facilities while still offering the benefits of private ownership. However, certain property types are strictly off-limits to non-residents. Affordable housing units, government-sponsored developments, and smaller rental properties are typically reserved for Bermudians only.
Annual Rental Value (ARV) thresholds are key in determining eligibility. Properties with lower ARVs are generally not available to foreign buyers, ensuring that international purchases are limited to higher-end real estate.
Step-by-Step Guide to Purchasing Property in Bermuda
The process of buying property in Bermuda follows a structured path. First, it is critical to engage a real estate agent who specializes in working with non-Bermudian buyers. Agencies like The Property Group offer expertise in navigating the unique aspects of the Bermuda real estate market for foreigners.
Secondly, you will need to hire a local attorney. Real estate law in Bermuda can be complex, and legal counsel is essential for drafting contracts, managing the acquisition license process, and conducting due diligence.
After selecting a property, you will make an offer contingent upon obtaining the necessary approvals. At this stage, securing financing is also important, although some buyers opt for cash purchases to expedite transactions. Once the offer is accepted and the Acquisition License is obtained, the sale can proceed to closing.
Typically, the entire timeline from making an offer to taking possession ranges between six and twelve months, depending largely on how quickly the license is approved.
Best Areas in Bermuda for Non-Bermudian Buyers
Bermuda offers a variety of appealing locations for non-resident buyers. Hamilton Parish is ideal for those who want proximity to shops, restaurants, and stunning beaches, making it one of the most vibrant areas on the island.
Warwick and Southampton are perfect for those seeking beachfront living. These areas boast some of the best stretches of Bermuda’s famed pink-sand beaches and offer a relaxed yet luxurious lifestyle.
Pembroke is well-suited for those desiring urban convenience. It is close to Hamilton city, Bermuda’s business hub, offering easy access to offices, nightlife, and cultural attractions.
For buyers seeking prestige and privacy, Tucker’s Town and St. George’s are unbeatable. Properties here represent the pinnacle of luxury, and buyers can expect stunning views, expansive estates, and exclusivity.
Costs and Taxes Involved in Buying Bermuda Real Estate
Buying property in Bermuda involves several costs beyond the listing price. Stamp duty is one of the most significant expenses, ranging from 4% to 12% based on the property's price. This must be paid at the time of property registration.
The Acquisition License fee, which ranges between 12.5% and 18% of the purchase price, is another major expense. Legal fees typically amount to around 2% to 3% of the property value, covering due diligence, drafting contracts, and other administrative tasks.
Ongoing property taxes in Bermuda are based on the ARV of the home. Luxury properties with higher ARVs naturally incur higher annual tax bills. Buyers should also budget for maintenance costs, which are often higher than on the mainland due to the cost of importing goods and services.
Other hidden costs may include appraisal fees, insurance, and surveyor’s reports, all of which should be factored into the overall budget to avoid surprises.
Financing Options for Non-Bermudian Buyers
Although financing options are more limited for non-residents, several avenues are available. Bermuda-based banks such as HSBC Bermuda and Butterfield Bank offer mortgage solutions tailored for international buyers, though the terms can be more stringent than for local borrowers.
International banks and lenders may also offer financing, but this often involves a lengthier vetting process and higher scrutiny of your financial history. Regardless of the source, non-Bermudian buyers should expect to make a down payment of at least 30% to 40% of the purchase price.
Working with a mortgage advisor who is familiar with property financing in Bermuda can make a significant difference in securing favorable terms and smoothing the approval process.
Investment Potential and Rental Opportunities
The Bermuda property market continues to offer strong investment potential in 2025. With limited land and strict construction regulations, property values tend to hold steady or appreciate over time, creating a robust environment for investors.
There is also a strong demand for rental properties, particularly long-term rentals and vacation homes. Rental yields are attractive, especially for properties located in Hamilton, Warwick, and Southampton, where demand from both tourists and expatriates remains high.
While investing in Bermuda real estate offers promising returns, it is important to be aware of market fluctuations, global economic trends, and local regulations concerning rental properties. Working with a seasoned real estate agent and legal advisor can help mitigate these risks.
Why Choose The Property Group?
Choosing the right real estate partner is crucial when buying property abroad, and The Property Group distinguishes itself as a leader in Bermuda’s real estate market.
First, their team offers unmatched local expertise and in-depth knowledge of the Bermuda real estate market. With years of experience serving both local and international clients, they provide insights that few others can match.
Second, The Property Group has a proven track record of successful transactions with non-Bermudian buyers. Their client-focused approach ensures that every buyer receives personalized attention and expert guidance throughout the process.
Third, their marketing strategies are highly personalized. Whether you are buying or selling, they craft a custom approach tailored to your unique goals, maximizing your property’s potential.
Additionally, The Property Group offers dedicated support throughout the entire buying journey. From the initial consultation to securing financing and finalizing the purchase, their agents stay involved every step of the way.
The agency also embraces innovative technology and tools, including virtual tours, advanced analytics, and exclusive listings, ensuring that buyers have the most up-to-date information and resources at their fingertips.
Above all, The Property Group is committed to professionalism, transparency, and integrity, making them one of the most trusted names in Bermuda real estate today.
You can learn more and connect with The Property Group by visiting their website at www.property-group.com.
FAQ
Can foreigners buy property in Bermuda?
Yes, non-Bermudians can buy property in Bermuda, but only select properties meeting ARV thresholds and with the approval of an Acquisition License.
How long does it take to buy a property in Bermuda?
Typically, the process takes between six and twelve months, depending largely on how quickly the Acquisition License is approved.
What are the costs associated with buying a house in Bermuda?
Costs include stamp duties, acquisition license fees, legal fees, property taxes, and ongoing maintenance costs.
Is buying property in Bermuda a good investment?
Given Bermuda’s limited land availability and strong demand for rental properties, real estate investment in Bermuda offers solid long-term value and potential appreciation.
Conclusion: Your Island Dream Awaits
Buying real estate in Bermuda as a non-Bermudian may seem complex, but with the right team guiding you, it is absolutely within reach. By understanding property laws, choosing the best location, and preparing for the associated costs, you can navigate the market confidently.
Whether your goal is to retire, invest, or secure a stunning vacation home, Bermuda offers unparalleled beauty, lifestyle, and investment potential. Now is the time to take the first step toward your dream island home. Connect with an experienced real estate agent like The Property Group today and begin your journey to paradise.