Bermuda

Economic Overview

Bermuda’s economy is primarily based on financial services, which account for a significant portion of its GDP. The tourism sector also plays a crucial role, attracting visitors with its natural beauty and luxury offerings. The country’s GDP reached approximately US$7.2 billion in 2024, with a steady growth rate of around 2.5% annually. The government’s commitment to maintaining a robust business environment and enhancing infrastructure supports continued economic growth, making Bermuda a prime location for those seeking Bermuda real estate.

Tourism and Lifestyle

Tourism is a vital component of Bermuda’s economy, drawing visitors with its scenic beaches, golf courses, and historical sites. Popular attractions include Horseshoe Bay Beach, the Royal Naval Dockyard, and the Crystal Caves. In 2023, tourism contributed approximately US$1.5 billion to the economy, reflecting its importance to Bermuda’s economic landscape.

Real Estate Opportunities

The real estate market in Bermuda is diverse, offering opportunities in luxury residential properties, commercial developments, and hospitality projects. The island’s favorable investment climate and tax advantages enhance its appeal to international investors.

• Luxury Residential Properties: High demand for waterfront homes, luxury condos, and estates, particularly in areas like Tucker’s Town and Hamilton Parish.
• Commercial Real Estate: Opportunities in developing office spaces, retail centers, and mixed-use developments to cater to the thriving business community.
• Hospitality Real Estate: Significant opportunities in resort development and expansion, given the island’s focus on luxury tourism.
• Land Development: Potential for acquiring prime land for new residential communities, commercial complexes, and eco-friendly resorts.
• Property for Sale in Bermuda: Numerous properties are available for sale, catering to both residential and commercial investors.

Bermuda: A Financial Hub

Bermuda, located in the North Atlantic, is known for its status as a global financial center. The island’s well-developed infrastructure and favorable regulatory environment make it an attractive destination for international businesses and investors.

Cities and Towns in Bermuda

Bermuda is relatively small, with several key areas offering unique opportunities for real estate and business investments.

Hamilton

Hamilton, the capital city of Bermuda, is a vibrant and bustling hub known for its rich history, diverse culture, and commercial vitality. The city, with a population of approximately 1,000, is the economic heart of Bermuda, featuring a blend of colonial architecture and modern amenities. Hamilton’s picturesque waterfront, dynamic dining scene, and wide range of entertainment options make it an attractive destination for tourists and real estate investors alike. The city’s strategic development initiatives, including significant infrastructure improvements and waterfront development projects, are poised to enhance its appeal and drive growth in both the tourism and real estate sectors.

St. George

St. George’s, the historic town and former capital of Bermuda, is a picturesque destination known for its well-preserved colonial architecture and rich cultural heritage. As a UNESCO World Heritage Site, St. George’s offers a glimpse into Bermuda’s past with its narrow streets, charming squares, and historic landmarks such as St. Peter’s Church and the Unfinished Church. The town is also a vibrant center for tourism, featuring four shops, restaurants, and museums that attract visitors year-round. Its scenic harbor and strategic location make St. George’s an ideal spot for both residential and commercial real estate investments, supported by ongoing preservation and development efforts to enhance its historical charm and modern amenities.

Southhampton

Southampton, located on the southwestern coast of Bermuda, is renowned for its stunning beaches, luxury resorts, and vibrant community. The area is a major tourism hub, highlighted by the ongoing $190 million redevelopment of the Fairmont Southampton, which is set to significantly boost the local economy and attract visitors. Key attractions include Horseshoe Bay Beach and Gibb’s Hill Lighthouse, both offering breathtaking views and a range of recreational activities. Southampton’s real estate market is thriving, with high demand for luxury residential properties and significant opportunities for commercial and tourism-related developments. The Bermuda government’s strategic initiatives, including infrastructure improvements and sustainable development projects, further enhance Southampton’s appeal as a prime destination for both visitors and investors.

Paget

Paget, located just south of Hamilton, is one of Bermuda’s most desirable residential areas, known for its luxury homes, scenic landscapes, and thriving commercial properties. The parish offers a harmonious blend of tranquil suburban living and convenient access to urban amenities, making it an attractive destination for both residents and investors. Key attractions include the picturesque Elbow Beach, the lush Paget Marsh Nature Reserve, and various upscale dining and shopping options. With ongoing development projects and significant real estate opportunities in prime areas such as Harbor Road and Middle Road, Paget continues to be a prime location for luxury residential developments and sustainable investment.

Warwick

Warwick Parish, centrally located in Bermuda, is known for its stunning landscapes, luxury homes, and vibrant community. The area boasts beautiful beaches like Warwick Long Bay and secluded coves such as Jobson’s Cove, making it a popular spot for both residents and tourists. Key developments include the redevelopment of Riddell’s Bay, transforming former golf course land into luxury residential lots with extensive conservation areas. Warwick offers diverse real estate opportunities, including upscale homes along Harbor Road and mixed-use developments. Supported by government initiatives for sustainable development and infrastructure improvements, Warwick is a prime location for investment and a quiet yet vibrant place to live.

How to Start a Company in Bermuda

Forming a company in Bermuda as a foreign investor is simple, with the government promoting foreign direct investment (FDI) and offering several incentives.

• Types of Companies: Investors can establish various types of businesses, including Limited Liability Companies (LLCs), partnerships, and branch offices.
• Incentives: Tax neutrality, ease of incorporation, and a well-regulated business environment are among the benefits offered to investors.
• Ease of Doing Business: Bermuda offers a streamlined business registration process, facilitating the setup and operation of businesses, particularly in the financial services and real estate sectors.

Financial Markets and Stocks in Bermuda

Bermuda’s financial sector is well-developed, with a strong presence of local and international banks and financial institutions.

• Bermuda Stock Exchange (BSX): The BSX provides a platform for trading securities, including stocks and bonds.
• Banking Sector: The country’s banking sector is robust, with both local and international banks offering comprehensive financial services to support real estate and business investments.

Bermuda’s Currency: The Bermudian Dollar

The official currency of Bermuda is the Bermudian Dollar (BMD), which is pegged to the US Dollar at a fixed rate of 1 BMD to 1 USD. This stability makes transactions simple and reduces exchange rate risk for investors.

Industry in Bermuda

While financial services and tourism are the primary industries, Bermuda also has a growing insurance and reinsurance sector, providing additional opportunities for real estate development, particularly in commercial and mixed-use properties.

• Financial Services: The main driver of the economy, with ongoing investments in banking, insurance, and international business, fueling demand for commercial real estate.
• Tourism: A significant sector, with investments in luxury resorts and infrastructure, driving demand for hospitality real estate.
• Insurance and Reinsurance: A major industry, providing global services and supporting commercial real estate needs.

Tax Advantages in Bermuda

Bermuda is known for its attractive tax environment, making it an excellent destination for investors and high-net-worth individuals seeking to minimize their tax liabilities while enjoying the benefits of a sophisticated island lifestyle.

Key Tax Benefits:

• Zero Direct Tax System: Bermuda imposes no personal income tax, corporate tax, capital gains tax, wealth tax, or inheritance tax.
• Tax Neutrality: A unique regime that offers tax neutrality for international business companies and investors.

Tax Summary:

Bermuda Offshore Company Formation

Bermuda’s offshore company formation regime offers significant advantages for international businesses and investors seeking a tax-efficient, confidential, and flexible corporate structure. With no taxes on profits, income, dividends, or capital gains, along with robust privacy protections and straightforward incorporation procedures, Bermuda is an attractive jurisdiction for holding companies, trading firms, and service providers. Compliance with economic substance requirements ensures legitimacy, while the absence of exchange controls facilitates free capital movement. By leveraging Bermuda’s favorable business environment, companies can optimize their operations for maximum efficiency and financial benefit.

Bermuda Residence by Investment Program

Bermuda offers an attractive Residence by Investment (RBI) program designed to attract high-net-worth individuals seeking to enjoy the island’s exceptional quality of life and favorable business environment. The program allows foreign investors to obtain residency permits through significant investments in Bermuda’s real estate or business sectors. Here are key details:

• Eligibility and Requirements: Investors must purchase real estate valued at a minimum of $2.5 million or invest substantially in a local business. The investment should contribute to the economic development of Bermuda and create job opportunities for residents.
• Application Process: Applicants must provide proof of the qualifying investment, financial stability, and a clear criminal record. The process involves submitting an application to the Bermuda Immigration Department, including detailed documentation and payment of applicable fees.
• Benefits: Successful applicants receive a residency permit, allowing them to live in Bermuda year-round. This permit can be renewed periodically. Residents benefit from Bermuda’s tax advantages, including no income, capital gains, or inheritance taxes. Additionally, the island’s strategic location, high quality of life, and excellent healthcare and educational facilities make it an attractive destination.
• Family Inclusion: The residency permit extends to the investor’s spouse and dependent children, providing them with the same residency rights.
• Commitment to Community: Investors are encouraged to engage with the local community, supporting social and economic initiatives to foster growth and development within Bermuda.

Cryptocurrency in Bermuda

Bermuda is open to cryptocurrency and blockchain technology. The government has developed a regulatory framework to attract crypto-related businesses and investors, presenting unique opportunities for tech-driven real estate developments and digital nomad communities.

Buying Real Estate in Bermuda

The real estate market in Bermuda is diverse and growing, offering opportunities in residential, commercial, and hospitality properties.

• Luxury Properties: High demand for waterfront homes, luxury condos, and resort properties makes this sector attractive for investors seeking vacation rentals or personal residences.
• Commercial Real Estate: Opportunities in developing office spaces, retail centers, and mixed-use developments to cater to the thriving business community.
• Hospitality Real Estate: Significant opportunities in resort development and expansion, given the island’s focus on luxury tourism.
• Property for Sale in Bermuda: Numerous properties are available for sale, catering to both residential and commercial needs.

Private Equity Investments in Bermuda

Real estate private equity opportunities are available, particularly in the financial services and tourism sectors. Investors can participate in development projects, resort acquisitions, and other high-growth ventures. The stable political environment and supportive government policies further enhance the investment climate.

Should You Invest in Bermuda?

Bermuda offers a stable political environment, a growing economy, and attractive investment incentives. The island’s strategic location, coupled with its status as a global financial center and natural beauty, makes it an appealing destination for investors.

• Strong Economic Fundamentals: Continued GDP growth and investment in infrastructure.
• Attractive Real Estate Market: High demand for luxury and commercial properties.
• Government Support: Pro-investment policies and incentives, including tax neutrality.