Step-by-Step: Buying Real Estate in Bermuda as a Foreigner (2025 Guide)

Introduction

Did you know that foreigners can legally buy property in Bermuda, but only under specific conditions? With its crystal-clear waters, pink-sand beaches, world-class healthcare system, and absence of income, capital gains or inheritance tax, Bermuda has long been considered a safe and luxurious haven for offshore property investment. However, foreign ownership comes with stringent regulations and licensing requirements that can feel daunting without expert guidance.

That’s where this guide comes in. Whether you are looking to retire in paradise, expand your global property portfolio, or secure a second home in a tax-neutral jurisdiction, this 2025 guide explains everything you need to know about buying real estate in Bermuda as a non-Bermudian. From legal frameworks and financing to property types and timelines, you will find practical, accurate, and up-to-date information throughout this article.

Can Foreigners Buy Property in Bermuda?

Yes, non-Bermudians can buy property in Bermuda, but access is limited. Foreigners are only permitted to purchase specific types of properties that meet a minimum Annual Rental Value (ARV) threshold. This valuation, set by the government, determines the minimum property size and market value foreigners must adhere to when purchasing.

Generally, these homes are on the higher end of the market, such as luxury estates and waterfront condominiums, making Bermuda particularly attractive to High-Net-Worth Individuals (HNWIs). Foreign buyers must also obtain an Alien Landholding Licence (ALL) before finalising any purchase. It’s important to note that owning property in Bermuda does not grant permanent residency or citizenship, although it can bolster your application for long-term residence under specific immigration routes.

The Bermudian government actively encourages high-value foreign investment in real estate, as long as it aligns with their controlled development goals. As such, while the process may be restrictive, it is also well-regulated and transparent.

What Are the Property Types Available to Foreigners?

Foreign buyers in Bermuda are typically limited to single-family homes and condominiums with an ARV above a specified threshold. For 2025, this threshold typically starts at BMD 126,000 for houses and BMD 25,800 for condominiums, although figures may vary.

Single-family homes often include access to private docks, swimming pools, and expansive sea views, while condominiums are usually located in resort-style developments with access to golf courses, restaurants, and concierge services. Standalone homes tend to be more expensive and are often freehold, offering full ownership rights. In contrast, some condominiums operate under leasehold structures, so it is essential to clarify ownership terms before committing.

Buyers should work with a qualified Bermudian estate agent to ensure that the property in question is eligible for foreign ownership and matches your investment goals.

Understanding the Alien Landholding Licence (ALL)

The Alien Landholding Licence is a legal requirement for any foreign national purchasing property in Bermuda. This document grants non-Bermudians the right to own land, but it does not grant any residency or work privileges.

To apply, buyers must submit a formal application through the Ministry of Home Affairs, including details of the intended property, proof of financial solvency, police background checks, and personal identification documents. The cost of the licence can range from 8% to 12.5% of the purchase price, depending on the property type and value.

Approval timelines can vary, with standard processing taking between three to nine months. Working with a local legal advisor can significantly streamline the application process. For high-value purchases, some buyers may consider engaging pre-licence consultation services to reduce application errors and delays.

The Buying Process: Step-by-Step Breakdown

1. Engage a Qualified Estate Agent:
Start by selecting a Bermuda-based estate agency like JBM Realty, known for its experience with foreign buyers and in-depth knowledge of licence-eligible properties.

2. Identify Suitable Properties:
Once eligibility is confirmed, begin property viewings. Your agent will advise you on ARV thresholds, ownership types, and investment potential.

3. Make an Offer and Begin Due Diligence:
Submit a written offer through your agent. Upon acceptance, conduct due diligence, including title checks, surveys, and valuation assessments.

4. Apply for the Alien Landholding Licence:
Submit your ALL application, with guidance from your attorney. Prepare for a multi-month approval process.

5. Sign Contracts and Finalise the Sale:
Once the licence is granted, contracts are finalised, and funds are transferred. The deed is recorded with the Bermuda Government.

Costs and Fees Involved in Buying Property

Beyond the purchase price, buyers should prepare for a range of additional costs:

• Stamp Duty: Usually split between buyer and seller, this ranges from 4% to 10% depending on the property value.
• Alien Landholding Licence Fee: Typically 8% for condos and up to 12.5% for single-family homes.
• Legal Fees: Ranging from 1% to 2.5% of the property price.
• Agent Commissions: Usually paid by the seller but can be negotiated.
• Other Fees: These may include property inspections, bank charges, and government registration fees.

Ongoing costs such as maintenance, landscaping, insurance, and property taxes (based on ARV) should also be factored into your investment planning.

Financing Options for Foreign Buyers

While Bermuda operates primarily on a cash-purchase basis, some local and international banks do offer mortgage products for foreign buyers. However, terms can be strict, and interest rates may vary. Most banks require a substantial down payment, often up to 40% of the property's value.

Offshore banks based in Bermuda or neighbouring jurisdictions can also offer bespoke financing packages, especially for HNWIs with multi-jurisdictional portfolios. Currency risk should be considered, as most transactions are in Bermudian or US dollars. Cash buyers may benefit from faster transaction times and more favourable price negotiations.

Taxes and Residency Considerations

One of the most compelling reasons to invest in Bermuda real estate is the country’s favourable tax regime. Bermuda has no capital gains tax, no inheritance tax, and no income tax. This makes it especially attractive to investors seeking tax-neutral jurisdictions for property ownership.

However, owning property in Bermuda does not grant you residency or the right to live full-time on the island. Separate immigration processes exist for work permits, long-term residency, or economic contribution routes, all of which require legal consultation.

Mistakes to Avoid When Buying Property in Bermuda

1. Working with Unlicensed Professionals:
Ensure your estate agent and legal advisor are licensed and experienced with foreign transactions.

2. Underestimating Licence Timelines:
ALL approval takes time. Avoid scheduling moves or renovations before the licence is granted.

3. Ignoring Hidden Costs:
Many buyers overlook stamp duty, insurance, or currency exchange costs. Create a detailed budget upfront.

4. Not Conducting Title Checks:
While Bermuda’s property system is reliable, title verification and legal review are still essential steps.

Why Invest in Bermuda Real Estate in 2025?

The Bermuda property market in 2025 continues to attract international interest, especially among buyers seeking long-term value and security. Recent trends show steady demand for luxury homes, waterfront properties, and resort-style condominiums, especially in neighbourhoods like Tucker’s Town and Warwick.

Bermuda’s political stability, strong legal system, and low-crime environment make it an ideal location for offshore property ownership. It is also a highly desirable destination for retirees, digital nomads, and executives looking for a second home.

With high rental demand driven by expats and seasonal visitors, the potential for short-term letting income is also a significant advantage.

Why Choose JBM Realty?

Local Expertise and Market Knowledge
JBM Realty is deeply embedded in Bermuda’s property landscape. With years of experience in guiding foreign investors, the team understands the nuances of ARV restrictions, licence eligibility, and neighbourhood investment potential.

Proven Track Record of Success
JBM Realty has successfully helped international buyers navigate complex real estate laws in Bermuda. Their portfolio includes high-value transactions involving estates, beachfront homes, and private island properties.

Personalised Marketing and Client Services
Whether you're buying for personal use or investment, JBM Realty delivers tailored solutions. Their team listens closely to client needs and matches them with ideal properties.

Dedicated Support and Transparency
From licence applications to legal paperwork, JBM Realty remains with you every step of the way. Their client-first approach ensures full transparency, responsiveness, and peace of mind.

Access to the Best Listings
JBM Realty offers exclusive access to off-market properties and new developments, giving clients a competitive edge in a limited inventory market.

Frequently Asked Questions

Can foreigners buy any type of property in Bermuda?
No, foreigners are limited to purchasing properties with a minimum Annual Rental Value (ARV). These typically include high-end homes and select condominiums. Your real estate agent will help you identify eligible listings.

How long does it take to get the Alien Landholding Licence?
Approval usually takes between three to nine months. Starting the process early and working with an experienced legal advisor can help speed up the timeline.

Does owning property give me residency in Bermuda?
No. Property ownership does not grant residency. You will need to apply through separate immigration channels to reside in Bermuda long term.

Are there any taxes I should be aware of?
While Bermuda does not impose income, inheritance, or capital gains taxes, you will still be subject to stamp duty, property taxes based on ARV, and fees associated with the Alien Landholding Licence.

Can I rent out my property in Bermuda?
Yes, rental income is allowed. However, some properties may have restrictions based on local zoning or development rules. Your agent can provide guidance specific to your investment.

Conclusion

Buying real estate in Bermuda as a foreigner in 2025 is not only possible, it can be a smart, rewarding, and strategic investment. While the process involves navigating licence requirements and government regulations, the benefits of owning a property in a stable, tax-friendly jurisdiction are clear.

If you’re ready to explore the Bermuda real estate market, start with a trusted local agency like JBM Realty. Their expert guidance, legal support, and unmatched market knowledge will help ensure your journey is smooth, successful, and secure.

Your dream home in paradise is closer than you think. Contact JBM Realty today and make your Bermuda investment a reality.

---