Property Tax Overview in Bermuda

Bermuda imposes no personal income tax, no capital gains tax, and no general wealth tax, but it does levy an annual Land Tax on all developed land and stamp duty on real estate transactions and certain legal instruments. These two charges are the primary property-related costs for owners. The Office of the Tax Commissioner administers both levies under the Land Tax Act 1967 and the Stamp Duties Act 1976 respectively. A new Valuation List is due to take effect on 1 January 2027, reflecting rental values as at 1 July 2025, so the ARV bands below remain current for tax years up to and including 2026. For jurisdiction context, see the Bermuda country overview.

How does Bermuda's Land Tax work?

Land Tax is calculated annually on the Annual Rental Value (ARV) of each property -- the estimated yearly rent the property could command on the open market -- rather than on capital value. The Department of Land Valuation sets each property's ARV. Tax is billed in two equal instalments, due in March and September. Late payment attracts interest at 7% per annum. Government land, the primary homestead of a Bermudian pensioner (age 65+) where the ARV does not exceed BMD 45,500, and certain charitable organisations are exempt from Land Tax entirely.

What are the current Land Tax bands for private dwellings?

For privately occupied residential properties, seven progressive bands apply. Each band's rate applies to the full ARV of the property (not just the portion above the threshold), making the step-up from one band to the next a material consideration when ARV is near a boundary.

Commercial properties are taxed at a flat 9.5% of ARV (reduced to 7% for properties within a designated Economic Empowerment Zone). Tourist properties (such as hotel units) are taxed at 8.9% of ARV. Vacation rentals listed on short-term platforms attract an additional 4.5% vacation rental fee on the rack rate, separate from Land Tax. [1][2]

What stamp duty applies when property changes hands?

Stamp duty is payable to the Office of the Tax Commissioner on the conveyance or transfer on sale of land. It is calculated on a sliding scale applied to successive portions of the purchase price -- not a flat rate on the whole. The applicable rates are:

• First BMD 100,000: 2.1%
• BMD 100,001 to 500,000: 3.15%
• BMD 500,001 to 1,000,000: 4.20%
• BMD 1,000,001 to 1,500,000: 6.30%
• Over BMD 1,500,000: 7.35%

A first-time Bermudian homebuyer purchasing a property with a purchase price of BMD 750,000 or less, who satisfies all qualifying conditions, is entitled to a full waiver of conveyance stamp duty. Stamp duty on a lease not exceeding three years is 1.05% of the aggregate rent payable for the term; leases beyond three years attract 0.5% for each additional year. Mortgage refinancing transfers between financial institutions attract no duty on amounts up to BMD 1,000,000; amounts above that threshold are taxed at 0.5%. [3][4]

Does Bermuda levy stamp duty on estates and probate?

Yes. When a grant of representation (probate or letters of administration) is sought in respect of a Bermudian estate, stamp duty is charged on the net value of the estate's Bermuda assets. The progressive scale is:

• First BMD 100,000: nil
• Next BMD 100,000 (BMD 100,001-200,000): 5.25%
• Next BMD 800,000 (BMD 200,001-1,000,000): 10.5%
• Next BMD 1,000,000 (BMD 1,000,001-2,000,000): 15.75%
• Over BMD 2,000,000: 21%

A surviving spouse inheriting from the deceased is exempt. The primary family homestead of a Bermudian -- one property only -- may also transfer to heirs free of this duty under the homestead concession. Charitable donations from the estate are exempt. [3][5]

What restrictions apply to non-Bermudian property ownership?

Bermuda imposes strict controls on foreign nationals acquiring real estate. A non-Bermudian who does not hold a Permanent Resident Certificate (PRC) must obtain an Alien Landholding Licence (ALL) from the Minister responsible for Immigration before completing any purchase. Key parameters in force for 2025-2026:

• Minimum ARV thresholds: Freehold houses must carry a minimum ARV of BMD 126,000 (estimated market value roughly BMD 2.5 million to 3 million); condominiums must have a minimum ARV of BMD 25,800 (estimated market value roughly BMD 320,000 to 700,000). Only approximately the top 10% of Bermuda's housing stock meets the house threshold.
• Licence fee on houses: 12.5% of the purchase price, payable on grant of licence.
• Licence fee on condominiums: 8% of the purchase price.
• Licence fee on hotel/tourism developments: 6.5%.
• PRC holders: 6% on residential property purchases.
• Application fee: approximately BMD 1,706, refundable upon approval.
• Ownership cap: a non-Bermudian may hold at most two residential properties.
• Vacant land: non-Bermudians may not purchase vacant (undeveloped) land.
• Commercial property: non-Bermudians may not acquire commercial real estate.
• Short-term rental: ownership of a residential property under an ALL does not automatically permit short-term or holiday rental use; that requires separate approval or a tourism designation. [6][7]

Owners near an ARV band boundary -- particularly the BMD 44,001 step where the rate jumps from 6.5% to 17% -- may find the Land Tax impact significant relative to a modest ARV difference. The 2026 revaluation (new list effective 1 January 2027) may shift properties across bands as rental values are updated for the first time since 2015.

Bermuda's Land Tax, stamp duty, and Alien Landholding Licence obligations interact in ways that depend on individual circumstances, property classification, residency status, and transaction structure. Prospective buyers, estate administrators, and existing property owners are encouraged to consult a qualified tax professional familiar with Bermuda property law before making decisions.