Bermuda Property Categories Explained for Foreign Buyers

Thinking about buying in Bermuda and wondering which homes you can actually purchase? If you do not have Belonger status, the rules feel complex at first glance. You want clarity on eligibility, ARV, Ministerial licences, and the steps that reduce risk. This guide breaks it down so you can focus on the right properties and move forward with confidence. Let’s dive in.

The big picture: who can buy what

Belonger vs non-Belonger

If you hold Belonger status, you generally have broad rights to purchase most residential property. If you are a non-Belonger, you face limits. Some properties are specifically designated for sale to non-Belongers, while others require Ministerial consent or are not available at all.

A property’s title often states whether it can be sold to a non-Belonger. Your first step is to confirm the property’s designation or whether a licence will be required.

Property categories that affect eligibility

• Properties reserved for Belongers. Many ordinary resale homes fall here. A non-Belonger purchase may be restricted unless a special licence is granted.
• Properties approved for non-Belongers. New developments and some multi-unit buildings often carry express Government approval for non-Belonger sales.
• Commercial and mixed-use property. Different rules can apply. Commercial transactions may be more flexible but still involve planning and licensing considerations.
• Government or Crown land and leasehold. Transfer rules can differ. Always confirm if land is Crown or leasehold and the terms of transfer.
• Special classes. Agricultural land, protected sites, coastal or heritage areas, and properties with restrictive covenants can carry use and transfer constraints regardless of your status.

Key terms you will see

Ministerial licence or consent

Some non-Belonger purchases require a Ministerial licence. This is a discretionary Government approval that adds time and documentation to the process. Plan for the possibility of delays and build application steps into your contract timeline.

ARV (Approved Residential Value)

ARV is an administrative classification used by Government in the property approval process. It often appears in policies that determine which units or developments may be sold to non-Belongers. ARV thresholds can change, so confirm current policy with official sources before you rely on a specific value.

Title, encumbrances, and ownership types

Your conveyancing lawyer should obtain the title and check for any recorded restrictions, caveats, easements, or covenants. Confirm if the property is freehold or leasehold. Lease terms, renewal rights, and any special conditions will affect transfer and long-term use.

Taxes, duties, and ongoing costs

Budget for stamp duty and registration fees at purchase, plus ongoing land tax. Rates and calculation methods can change, so your lawyer should confirm current figures as part of due diligence.

Planning and zoning

Planning approvals, zoning, and permitted uses determine what you can do after closing. Verify any existing permissions, pending applications, or enforcement issues with the Planning Department.

Residency vs ownership

Owning property does not automatically grant residency or work rights. Immigration status is a separate administrative track, so set expectations accordingly.

Choose the right pathway as a foreign buyer

Start with eligibility and designation

Ask the listing agent or seller for documentation that confirms whether the property is designated for non-Belonger sale. If it is not, your lawyer can advise whether a Ministerial licence is possible and what that process involves. For units in new developments, confirm the developer’s Government approvals and any resale conditions.

Clarify your purpose

Define how you plan to use the property. Primary residence, vacation home, or investment will shape your financing options, tax implications, and the likelihood that approvals will be granted. If you plan to buy through a company or trust, get advice on how that structure will be treated.

Verify ARV and planning constraints

For multi-unit buildings and new developments, confirm the unit’s ARV status and whether it aligns with current policy for non-Belonger sales. Review planning records for permitted uses, setbacks, heritage overlays, and any conditions that affect renovations or rental activity.

Financing and funds

Decide whether you will finance locally or use offshore lending. Some local lenders have limits or higher equity requirements for non-Belongers. The Bermuda Dollar is pegged to the US Dollar at 1 to 1, but you should still confirm settlement currency and transfer logistics with your bank.

When you need a Ministerial licence

If the property is not already approved for non-Belonger sale, you may need Ministerial consent. Your lawyer or agent will prepare the application. Processing time varies by case, and approvals are discretionary. Build realistic timing and approval contingencies into your offer.

Contract to close: what to expect

The standard sequence is offer and acceptance, deposit, due diligence, exchange, and closing. During due diligence, complete title searches, planning checks, and financing confirmations, and prepare any Government applications. At closing, you will pay stamp duty, legal and registration fees, and any applicable permit fees. After closing, register title and set up ongoing land tax and insurance.

Due diligence checklist for non-Belongers

Use this as a working list with your Bermuda counsel and agent:

• Obtain a certified copy of the current title or deed and review all restrictions, encumbrances, and any notes on non-Belonger eligibility.
• Confirm whether the property is designated for non-Belonger purchase or whether you must apply for a Ministerial licence.
• Verify zoning, planning permissions, and any outstanding enforcement notices with the Planning Department.
• Identify encumbrances such as mortgages, easements, caveats, restrictive covenants, and rights of way.
• Confirm boundary lines and obtain a current survey. Resolve any discrepancies or disputes before exchange.
• Review environmental and coastal risk. Understand flood exposure, coastal setback rules, and insurance availability and cost.
• Check for heritage or conservation restrictions that can limit renovations or use.
• Review rental rules, including any limits on short-term vacation rentals or other commercial uses.
• Itemize closing costs: stamp duty, legal fees, registration, agent commission as negotiated, and permit or application fees.
• Confirm mortgage availability and terms if you intend to borrow, including down payment and security requirements.
• Review tax and estate implications for future transfers or inheritance planning.

Practical risks, timelines, and costs

Common risks to mitigate

• Administrative delay or refusal of Ministerial consent. Build contingency and timing into contracts.
• Shifts in developer or Government designations. Get approvals documented and ensure they are recorded on title.
• Financing constraints for non-Belongers. Pre-verify lending capacity and conditions before you go firm.
• Misunderstanding residency rights. Property ownership alone does not confer immigration or work status.
• Currency movement and repatriation logistics. Confirm practical banking steps for purchase and eventual sale proceeds.

Timeline drivers

Processing of Government permissions can take weeks to months, depending on complexity. Title searches, surveys, and resolution of encumbrances also add time. New developments may use staged closings that follow construction and developer milestones.

Cost categories to budget

• Purchase price
• Stamp duty and transfer taxes
• Legal and conveyancing fees
• Ministerial or permit application fees, if required
• Survey, inspection, and valuation fees
• Mortgage arrangement fees, if borrowing
• Insurance, including hurricane and storm coverage
• Ongoing land tax and property maintenance

Sample buyer scenarios

Scenario 1: Non-Belonger purchasing in a new development

You find a condominium in a newly built complex marketed to international buyers. The developer confirms Government approval for non-Belonger sales. Your lawyer verifies the designation on title and checks the unit’s ARV status and planning compliance. With financing pre-verified, you proceed without a Ministerial licence. Closing follows standard timing, subject to construction completion and final issuance of completion certificates.

Scenario 2: Non-Belonger buying a single-family home

You are targeting a freestanding home that is not expressly designated for non-Belonger sale. Your lawyer confirms a Ministerial licence is required. You submit an application with supporting documentation. The contract includes a licence contingency and a realistic timeline. During the waiting period, you complete title, survey, planning checks, and insurance due diligence. Once consent is issued, you proceed to exchange and close, paying applicable duties and fees.

Scenario 3: Purchasing commercial or mixed-use property

You identify a mixed-use building with ground-floor commercial space and residential units. Rules are different from purely residential purchases. Your team verifies zoning and planning permissions, reviews title for use restrictions, and confirms whether any Government approval is required for your intended use. Financing and underwriting focus on cash flow and tenant mix. The path to closing emphasizes planning compliance and lease review.

Work with a trusted advisor

A successful purchase starts with clarity on eligibility, careful due diligence, and the right local team. Engage a Bermuda conveyancing lawyer early, consult the relevant Government departments for current ARV policy and application forms, and use experienced agents, surveyors, and lenders familiar with non-Belonger transactions.

If you want discreet guidance and curated introductions to vetted local professionals and select opportunities, connect with Peter Kempf International. We combine senior-level advisory with selective international access for high-net-worth buyers seeking second homes and investment properties.

Ready to explore Bermuda with confidence? Request a private conversation and curated next steps with Peter Kempf International.

FAQs

Can foreigners buy property in Bermuda?

• Yes, non-Belongers can buy certain properties. Some are designated for non-Belonger sale, while others may require a discretionary Ministerial licence.

What is ARV in Bermuda real estate?

• ARV is an administrative classification used in approvals and policy for non-Belonger sales; thresholds and treatment can change, so confirm current rules before relying on a specific value.

Do I need a Ministerial licence as a non-Belonger?

• You may, depending on the property’s designation; your lawyer should confirm if consent is required and handle the application.

Does property ownership grant residency in Bermuda?

• No, ownership does not provide residency or work rights; immigration and residency are separate processes.

How long do approvals take for non-Belongers?

• Timelines vary by case and can run from weeks to months; plan for potential delays in your contract.

Can non-Belongers get a local mortgage in Bermuda?

• Sometimes; availability and terms differ by lender, and many buyers use offshore financing or higher down payments.