Luxury Lifestyle Journal
5
0
luxurylifestylejournal
luxurylifestylejournal

What Property Tax Will I Pay on a Bermuda Home?

  • February 24, 2022
Total
0
Shares
0
0
0

Q. I’m a U.S. resident thinking of buying a vacation home in Bermuda. What are the property taxes like there?

A. Bermuda is a tax-friendly destination for individuals, not charging income, capital gains or inheritance taxes. 

However, home buyers pay a stamp duty, or transfer tax, when buying a property on the island, a British island territory located in the North Atlantic Ocean and known for pink-sand beaches. In addition, there is a land tax on residences. 

Both levies are progressive, meaning the more valuable the property, the higher the tax rate.

There are five rate bands for stamp duty, starting at 2% of the first B$100,000 (US$100,000) of the residence, according to the Government of Bermuda website. Buyers pay 3% on the next B$400,000, up to B$500,000; 4% on the cost between B$501,000 and B$1 million; 6% on the amount up to B$1.5 million; and 7% on the amount over B$1.5 million.

Land tax is due twice a year, and the bill is calculated by the Office of the Tax Commissioner. It is based on the annual rental value of a residence (ARV), or how much rent it would demand if offered unfurnished on the open market. 

The Land tax starts at B$300 for homes with an ARV of up to B$22,000, according to the government. There are seven additional rate bands, starting with a 0.8% charge on the B$11,000 above the initial B$22,000 and rising in B$10,000 increments. The highest band is a 50% charge on residences with an ARV of more than B$120,000. 

Keep in mind that the ARV and the market price are not the same. 

For example, a 4.65-acre compound outside Bermuda’s prestigious Tucker’s Town is currently being marketed for B$15 million, according to the listing with Rego Sotheby’s International Realty. 

The same property has an ARV of B$246,000, according to Bermuda’s Department of Land Valuation. 

Article Source: Mansion Global

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Previous Article

Massive Single-Story Mansion in Beverly Hills Lists for Nearly $26 Million

  • February 23, 2022
View Post
Next Article

Pharrell Williams Sells Hollywood Home With a Skate Park and Outdoor Theater for $9.2 Million

  • February 24, 2022
View Post
You May Also Like
View Post

The Buyer of This £29 Million English New-Build Can Live Like a King—Even in the Metaverse

  • February 24, 2022
View Post

146-Acre Estate Sells in Bozeman, Montana, in One of the Area’s Priciest Deals

  • February 10, 2022
View Post

What Are the New Stamp Duty Rates for Foreign Buyers in Singapore?

  • January 21, 2022
View Post

A 10,416-Square-Foot Home in Miami’s Posh Bay Point Neighborhood Sells for $11 Million

  • November 25, 2021
View Post

English Manor Next Door to Prince Charles’s Gloucestershire Estate Lists for £7.5 Million

  • November 25, 2021
View Post

John Staub-Designed Houston Estate Hits the Market for $12.5 Million After Renovation

  • November 25, 2021
View Post

Demand Is Booming for London’s Super-Luxury Rentals

  • November 25, 2021
View Post

Miami Mansion With a Sculpture Garden and Chihuly Chandelier Lists for $22.5 Million

  • November 25, 2021

Luxury Lifestyle Journal

Input your search keywords and press Enter.