Dreaming of owning a piece of paradise? You are not alone. Bermuda’s breathtaking pink-sand beaches, crystal-clear waters, and vibrant island culture have captivated international buyers for decades. However, buying property in Bermuda is not as simple as falling in love with a beautiful view. Bermuda has one of the world’s most tightly regulated real estate markets, and understanding the legal steps involved is crucial.
According to the Bermuda Government, only about 5% of the island’s residential properties are available for non-Bermudians. This exclusivity makes the property buying process both highly desirable and intricate. This 2025 guide covers every essential legal step, from securing a Bermuda Acquisition License to avoiding common legal pitfalls. Whether you are investing in a luxury villa or a waterfront retreat, this guide will help you make informed decisions and avoid costly mistakes.
Understanding Bermuda's Property Ownership Rules
Bermuda’s property ownership laws distinguish clearly between Bermudians and non-Bermudians. Bermudians enjoy unrestricted rights when it comes to purchasing and owning property. Non-Bermudians, on the other hand, are limited in what they can buy. Only specific properties, often luxury homes, waterfront estates, and resort residences, are available for foreign ownership.
Restrictions are strict for non-Bermudian buyers. Properties must fall within approved categories, and each transaction requires a government-issued Acquisition License. Moreover, the number of properties a non-Bermudian can own is generally limited, and resale of the property often involves additional regulations.
The types of properties typically available to international buyers include luxury standalone homes, high-end condominiums, and specific properties located within hotel or resort developments. Properties outside these categories are generally off-limits, reflecting Bermuda’s goal of preserving housing availability for its citizens.
The Role of a Bermuda Real Estate Attorney
Hiring a local Bermuda real estate attorney is not optional; it is mandatory for all property purchases involving non-Bermudians. Legal representation ensures compliance with Bermuda’s complex property laws and protects buyers throughout the transaction.
A real estate attorney plays a crucial role in conducting due diligence, verifying that the property title is clear, identifying any encumbrances, and ensuring that all legal requirements are met before the sale is finalized. This includes reviewing zoning laws, property boundaries, and covenants attached to the property.
Legal fees for real estate transactions in Bermuda generally range from 1.5% to 2% of the purchase price. These fees cover document preparation, negotiation of the sale and purchase agreement, handling of government applications, and overall legal advice throughout the process.
Applying for a Government License to Purchase Property
For non-Bermudians, obtaining an Acquisition License is a critical step in the buying process. This license is issued by the Bermuda Government and grants the buyer legal permission to purchase property on the island.
The application process begins with hiring a Bermuda attorney, who will prepare and submit the required documentation on the buyer’s behalf. This includes proof of funds, background information, and a description of the intended property purchase. Once submitted, the application undergoes government review.
In 2025, the government fee for the Acquisition License is approximately 8% to 12% of the property’s purchase price. Approval times can vary but typically take between six to nine months. Buyers should factor this time into their overall property acquisition timeline to avoid unexpected delays.
Conducting Title Searches and Legal Due Diligence
Conducting a thorough title search is a vital part of purchasing property in Bermuda. It verifies that the seller has clear and undisputed ownership of the property and that there are no existing liens, boundary disputes, or legal encumbrances that could affect ownership rights.
Common issues discovered during title searches include historical boundary discrepancies, unpaid property taxes, and unresolved claims from previous owners. Addressing these issues before proceeding with the purchase protects buyers from future legal complications.
Title insurance is highly recommended in Bermuda. It provides protection against undiscovered title defects, ensuring that buyers are covered financially should a problem arise after the purchase is completed.
Signing the Sale and Purchase Agreement
The sale and purchase agreement is the binding legal document that sets the terms of the property transaction. It includes key clauses that must be carefully reviewed and understood before signing.
Critical clauses include conditions related to financing, property inspections, the successful granting of an Acquisition License, and any contingencies that allow the buyer to cancel the agreement without penalty.
Upon signing, buyers are generally required to place a deposit, usually about 10% of the property’s value. This deposit is held in escrow by a neutral party, ensuring that funds are protected while conditions are being met.
If conditions are not satisfied, such as the denial of a license or the discovery of a serious title issue, the contract may allow for cancellation without financial penalty. Otherwise, breaches of the agreement can result in loss of the deposit or additional legal consequences.
Understanding Stamp Duty, Taxes, and Closing Costs
Stamp duty is one of the most significant costs associated with purchasing property in Bermuda. In 2025, non-Bermudians can expect stamp duty rates ranging from 8% to 12% of the property's purchase price, depending on its value.
Other taxes include the annual Bermuda land tax, which is based on the property’s Annual Rental Value (ARV). The ARV is assessed by the government and reflects the market rental value of the property rather than its purchase price.
In addition to stamp duty and land taxes, buyers should budget for other closing costs, such as legal fees, surveyor’s fees, bank transfer charges, and property registration costs. Factoring in these hidden costs early in the process can prevent unexpected financial strain later.
Completing the Closing Process
The closing process in Bermuda involves finalizing all financial and legal aspects of the property transaction. On the closing day, both parties sign the necessary documentation, and the remaining balance of the purchase price is transferred to the seller.
Ownership of the property is officially transferred once the deed is registered with Bermuda’s Land Title Registry Office. Buyers must ensure that all taxes, license fees, and legal charges have been fully paid before registration.
To ensure a seamless and secure handover, buyers should conduct a final property inspection, verify that all utilities have been settled, and obtain all keys, codes, and necessary documents from the seller.
Post-Purchase Legal Obligations
After purchasing property in Bermuda, owners must comply with several ongoing legal obligations. Property maintenance laws require that homes, especially those located in historic districts, meet certain aesthetic and structural standards.
Rental regulations also apply. Non-Bermudian owners are allowed to rent out their properties; however, short-term rentals may require additional government approval, particularly if they involve frequent turnover similar to hotel operations.
If owners decide to resell their property, they must be aware that resale often requires government permission. In some cases, properties may first have to be marketed to Bermudians before they can be sold to another non-Bermudian buyer, depending on licensing agreements and market conditions.
Why Choose The Property Group?
Choosing the right estate agency is crucial when navigating Bermuda’s highly regulated property market. The Property Group stands out as a leader in the industry, offering unmatched expertise and client-focused services.
The Property Group has an intimate understanding of the Bermuda property market, staying ahead of trends and regulations that can affect international buyers. Their team has a proven track record of successfully helping clients acquire luxury homes, waterfront properties, and resort residences.
They offer personalized marketing strategies tailored to each client’s specific needs and investment goals, ensuring a more strategic and efficient purchasing process.
With The Property Group, buyers benefit from dedicated support throughout the entire process, from initial consultation to final closing. Their strong network of trusted attorneys, surveyors, and financial experts ensures that every aspect of your transaction is handled with professionalism and care.
Moreover, The Property Group leverages the latest technology and tools to make property searches, documentation, and communication as seamless and efficient as possible.
Choosing The Property Group means choosing peace of mind and unparalleled service.
Frequently Asked Questions
Q: Can foreigners buy property in Bermuda?
Yes, foreigners can buy property in Bermuda, but the options are limited. Only designated properties, typically luxury residences, condominiums, and certain resort units, are available to non-Bermudians. Additionally, all foreign buyers must obtain an Acquisition License from the Bermuda Government, which includes a thorough background review and payment of a significant licensing fee.
Q: How long does it take to buy a house in Bermuda as a non-resident?
The purchase process for non-residents typically takes between six to twelve months. The lengthiest part of the process is usually obtaining the Acquisition License, which can take between six and nine months to be approved. Buyers should factor in additional time for completing due diligence, title searches, contract negotiations, and closing formalities.
Q: What is the stamp duty rate for non-Bermudians?
Non-Bermudians are subject to a stamp duty rate that typically ranges from 8% to 12% of the property’s purchase price. The exact percentage depends on the property's value bracket. It is important to budget for this fee early in the buying process, as it must be paid in full at the time of closing and is a mandatory government charge.
Q: Are there restrictions on renting out my Bermuda property?
Yes, there are restrictions, especially for short-term rentals. While non-Bermudian owners can rent out their properties, those looking to offer short-term accommodations must often obtain additional government approvals and comply with specific rental regulations. Long-term rentals (typically defined as longer than six months) are generally more straightforward but still require adherence to Bermuda’s rental laws.
Q: Do I need a local lawyer when buying property in Bermuda?
Yes, hiring a Bermuda-based real estate attorney is mandatory. The legal complexities of Bermuda’s real estate system require expert navigation to ensure a secure and compliant transaction. Your attorney will handle due diligence, title verification, preparation and negotiation of the sale and purchase agreement, Acquisition License applications, and the final registration of the property.
Conclusion
Understanding the legal steps to buying property in Bermuda is critical to ensuring a successful and secure investment. Each phase, from securing a government license to conducting title searches and preparing for taxes and closing costs, must be approached with diligence and expert guidance.
Bermuda’s real estate market remains one of the most exclusive and attractive in the world for international buyers. By following the proper legal procedures and working with trusted professionals, buyers can protect their investment and enjoy everything this beautiful island has to offer.
If you are ready to begin your Bermuda property journey, consult the experienced professionals at The Property Group. Their expert guidance will help turn your vision of island homeownership into reality.