Buying Property in Bermuda: Costs Beyond the Purchase Price

Buying a Bermuda property for $1 million does not mean you need only $1 million available.

Stamp duty, legal work, mortgage expenses, surveys, insurance and ongoing land tax all sit outside the headline price. For a non-Bermudian purchaser, the government landholding licence can add a much larger amount again.

That makes the real question:

What will this particular property cost to acquire, complete and own?

JBM Realty's current inventory shows why buyers need property-specific calculations. A five-bedroom property at Pearman's Hill, Warwick, is listed at BMD $995,000, while a four-bedroom house on South Road, Warwick, is listed at BMD $1,125,000. These are real JBM asking prices, not hypothetical market averages.

Before setting your maximum offer, start with JBM Realty's buyer resources and current inventory.

JBM Realty For Buyers
View current Bermuda properties for sale

Purchase-Price Planning: Calculate the Cost Before You Offer

A useful Bermuda buying budget has three parts:

Purchase price: the amount agreed with the seller.

Acquisition costs: stamp duty, applicable landholding licence fees, legal work, financing expenses, valuation and property-specific due diligence.

Post-completion costs: land tax, insurance, maintenance, condominium charges and any immediate repairs or improvements.

The distinction matters because acquisition costs vary significantly by buyer status.

What Current JBM Listings Show

Using the Government of Bermuda's current progressive conveyance stamp-duty rates, the following examples can be calculated from actual JBM asking prices:

*These figures apply the Government's published conveyance rates mathematically to the asking price. They are not closing statements for these properties. Bermuda legal guidance says conveyance duty is commonly split between purchaser and seller, but the actual allocation can be negotiated and must be confirmed in the transaction documents.

View the $995,000 Pearman's Hill property

View the $1,125,000 South Road property

This is a much more useful budgeting method than simply adding an arbitrary 15% or 20% to every purchase.

Stamp Duty: Use the Current Government Rates

As at September 2026, the Office of the Tax Commissioner publishes the following conveyance or transfer rates:

These are progressive rates. The highest percentage does not apply to the entire property value.

Check the Government of Bermuda stamp-duty schedule

For example, the total standard conveyance duty produced by those bands is:

• $35,700 on $1 million;
• $103,950 on $2 million;
• $250,950 on $4 million.

Again, these are total calculated conveyance-duty figures before considering any exemption or negotiated division between purchaser and seller.

First-Time Bermudian Buyers Can Be in a Very Different Position

The Government's first-time homebuyer relief is important enough to calculate separately.

A qualifying first-time buyer purchasing a home worth up to $1 million can pay no conveyance stamp duty. Where the purchase price exceeds $1 million, the relief applies to the first $1 million rather than disappearing altogether. The Government illustrates this with a $1.2 million purchase where only the $200,000 above the exemption is subject to duty.

Government of Bermuda first-time buyer stamp-duty relief

That is why a Bermudian first-time buyer and another purchaser paying exactly the same price can have very different closing budgets.

Non-Bermudian Buyers: The Licence Can Be the Biggest Additional Cost

Foreign ownership in Bermuda is restricted.

The Government has published minimum Annual Rental Value thresholds of $126,000 for qualifying residential property other than condominiums and $25,800 for qualifying condominiums for restricted purchasers. These thresholds relate to government-assessed ARV, not the property's asking price.

JBM has dedicated guidance for purchasers who fall into this category.

JBM Realty Non-Bermudian Acquisition of Property guide

Current 2026 Bermuda legal guidance gives the landholding licence charge as:

JBM's own 2026 landholding-licence guide also publishes the 12.5% house and 8% condominium rates.

Read JBM's 2026 Alien Landholding Licence guide

What That Means in Dollars

Take a hypothetical qualifying $2.5 million freehold home purchased by a non-Bermudian.

The 12.5% licence fee alone would equal:

$312,500

The total conveyance stamp duty calculated using the current Government bands would be:

$140,700

If the conveyance duty were divided equally between buyer and seller, an illustrative purchaser share would be:

$70,350

That puts the licence plus an illustrative half-share of conveyance duty at $382,850 before legal work, financing, surveys or insurance.

This is an illustration, not a JBM transaction. The final figures must be calculated against the actual property, purchaser status and contract.

Legal and Conveyancing Costs: Get a Property-Specific Quote

There is no sound basis for telling every JBM buyer that Bermuda legal fees are automatically 1%, 1.5% or 2% of the purchase price.

The work required varies.

A transaction can involve title investigation, contract review, searches, mortgage documentation, licence work, property restrictions and completion arrangements.

The better approach is to obtain a written estimate from a Bermuda conveyancing attorney once the property and buyer circumstances are known.

JBM's published closing-process guide explains that its role goes beyond arranging viewings. JBM says it helps coordinate with conveyancing attorneys, inspectors and surveyors and provides buyers with detailed cost estimates early enough to arrange funds before closing.

JBM's Bermuda property closing guide

This is a much stronger JBM-specific point than quoting an unsupported universal legal-fee percentage.

Survey, Inspection and Due-Diligence Costs

A Bermuda viewing should not be treated as a substitute for professional due diligence.

The appropriate inspection depends on the property, but buyers may need to assess:

• roof condition;
• water tanks and water-collection systems;
• electrical and plumbing systems;
• structural condition;
• boundaries and rights of way;
• drainage;
• storm exposure;
• previous alterations;
• retaining structures; and
• condominium documentation where relevant.

Instead of publishing generic "$2,000 to $5,000" survey figures without a named source, obtain a current quotation based on the property.

JBM states that it works with qualified inspectors and surveyors during its closing process and helps buyers assess whether issues identified are manageable, negotiable or serious enough to reconsider the transaction.

Read JBM's steps before submitting an offer

Financing and Mortgage Costs

Financed buyers should budget separately for the lender's valuation, bank charges, legal work relating to the mortgage and mortgage stamp duty.

Current Bermuda legal guidance states that mortgage stamp duty is generally:

• 0.25% where the secured amount is $400,000 or less;
• 0.5% where it exceeds $400,000.

The borrower normally bears that mortgage duty.

Do not publish a generic "1–2% bank arrangement fee" unless the figure comes from the lender being discussed. Bank charges, valuation requirements and loan-to-value rules should be quoted directly by the lender.

Insurance and Ongoing Ownership Costs

The current article should also remove the unsupported assumption that first-year insurance automatically equals 2% of a property's value.

Insurance depends on the property, rebuilding value, location, exposure, cover and deductible.

The practical advice is to obtain an insurance quotation before completion, particularly for waterfront or highly exposed homes.

JBM has also highlighted the greater maintenance and insurance considerations associated with exposed waterfront property in its 2026 waterfront-versus-hillside guide.

Read JBM's Waterfront vs Hillside Bermuda Homes guide

Land Tax: Check the Property's ARV

Bermuda land tax is based on Annual Rental Value, not simply the sale price.

The Office of the Tax Commissioner states that residential land tax is payable twice yearly. From 1 January 2026 the residential base charge was reduced from $300 to $150. The higher ARV bands are then taxed progressively.

Check current Bermuda land-tax rates

There is also an important 2026 timing issue.

Bermuda's new Valuation List will be published on 31 December 2026 and takes effect for land-tax purposes on 1 January 2027. It will use rental levels as at 1 July 2025. A buyer completing in 2026 should therefore understand the property's current ARV while recognising that its assessment may change when the new list takes effect.

A Real JBM Buyer Experience

Human proof does not need to be invented.

JBM publishes a testimonial from B.N., Bermuda, who worked with the agency over a two-and-a-half-year search for the right home and said they would recommend JBM to anyone looking to buy, sell or rent.

Read JBM Realty client testimonials

JBM also publishes a more specific closing example involving a UK buyer purchasing in Sandys Parish. According to JBM's closing guide, uncertainty arose over whether the property was affected by rent control. JBM says it coordinated with conveyancing counsel two weeks before the scheduled closing to obtain formal confirmation of the property's position, avoiding a potential last-minute renegotiation or failed transaction.

That example is much more useful for this article than a fictional "$2.1 million client paid X" case study because it is already published and checkable on JBM's website.

What JBM Realty Does to Help Buyers Control the Process

JBM's published buying and closing guidance identifies several practical parts of its service:

• helping buyers identify suitable properties for their status and requirements;
• providing early estimates of transaction costs;
• introducing buyers to Bermuda conveyancing attorneys;
• coordinating with inspectors and surveyors;
• keeping the different parties informed as the transaction progresses;
• helping international buyers understand licensing requirements; and
• supporting buyers through to closing.

That is the differentiator this article was previously missing.

JBM should not replace your attorney, lender, surveyor or insurer. Its value is helping bring those moving parts together while keeping the property search grounded in the buyer's actual budget and eligibility.

Bermuda Property Buyer Cost Checklist

Before committing to a property, confirm:

• agreed purchase price;
• deposit required;
• buyer status;
• whether the property is available to your buyer category;
• current ARV;
• total conveyance stamp duty;
• agreed buyer share of that duty;
• first-time buyer exemption, if relevant;
• applicable non-Bermudian landholding licence and fee;
• attorney's written fee estimate;
• survey and specialist inspection quotations;
• lender valuation and mortgage expenses;
• mortgage stamp duty;
• insurance quotation;
• current land tax;
• condominium charges or assessments;
• immediate repairs or renovation;
• moving and utility costs; and
• cash reserves remaining after completion.

For more market context, JBM's 2026 house-price guide combines current inventory with buyer considerations rather than relying on a single island-wide average.

Read Bermuda House Prices 2026

Frequently Asked Questions

How much should I budget above the purchase price in Bermuda?

There is no reliable universal percentage. A Bermudian first-time buyer, standard local purchaser and non-Bermudian buyer can have very different acquisition costs. Build the calculation around the actual property and buyer status.

How much is Bermuda conveyance stamp duty?

The Government currently uses progressive rates of 2.10%, 3.15%, 4.20%, 6.30% and 7.35% across successive value bands.

Do first-time homebuyers pay stamp duty?

Qualifying first-time buyers receive an exemption on the first $1 million of purchase value. A qualifying purchase of up to $1 million can therefore attract no conveyance stamp duty.

What does a non-Bermudian pay to buy a Bermuda house?

Current 2026 legal and JBM guidance gives a 12.5% licence fee for qualifying freehold property and 8% for a qualifying leasehold condominium, in addition to other transaction costs.

Does ARV mean market value?

No. ARV is an assessed annual rental value used within Bermuda's land valuation and tax framework. It is not the asking price of the property.

How much are legal fees?

Ask the chosen Bermuda attorney for a written transaction-specific estimate. Avoid relying on a generic percentage that does not account for the property, financing, title work or licensing requirements.

What ongoing costs should I check?

Land tax, insurance, maintenance, utilities and, where applicable, condominium charges and special assessments should all be considered.

Start With the Full Cost, Not Just the Asking Price

The safest Bermuda property budget is one built before the offer, not after it.

For a local first-time buyer, government relief can materially reduce acquisition costs. For a non-Bermudian buyer, the landholding licence can dramatically increase them. For every purchaser, the condition and ongoing cost of the individual property still matter.

JBM Realty can help you shortlist appropriate properties, establish the practical cost questions that need answering and coordinate with the professional advisers required to take a transaction through to completion.

View current Bermuda properties for sale

Contact JBM Realty about buying in Bermuda

Call JBM Realty: 441-234-2050.