Key Takeaways
- Property tax in Bermuda, known as land tax, applies to property based on its annual rental value as recorded in the valuation list.
- Liability can extend beyond owners to long-term tenants and deemed owners, which non-resident buyers and tenants should confirm before committing.
- Relief and exemptions exist for certain groups such as pensioners and charities, alongside distinct rate structures for residential, commercial, and tourist property.
- Companies and investors should plan around billing schedules, interest on overdue amounts, and the upcoming revaluation that may affect future liabilities.
Introduction to Property Tax in Bermuda: Understanding Land Tax
Bermuda is often described as a tax haven, yet it does impose direct levies, and the most relevant one for property holders is the annual land tax. This charge falls on the annual rental value of all developed land in the territory and follows a progressive scale, so a higher rental value carries a higher percentage of tax. It is governed by the Land Tax Act 1967 and administered by the Office of the Tax Commissioner.
Because there is no corporate income tax, capital gains tax, wealth tax, or personal income tax, land tax stands out as one of the few recurring direct costs of holding real estate here. This article explains how the tax is calculated, who must pay it, the applicable rates, available relief, payment mechanics, and the revaluation taking effect in 2027.
The guidance below is written for foreign owners, investors, and their advisers weighing the cost of acquiring or holding property, or of taking a long lease, in the jurisdiction.
The Legal Basis: Land Valuation and Tax Legislation of 1967
Two companion statutes underpin the system. The Land Valuation and Tax Act 1967 sets out the powers of the Land Valuation Department and governs how the Valuation List is produced and maintained; the Land Tax Act 1967 (statute 1967:237) carries the rate schedule, special concessions, and exemptions.
Both Acts continue in force indefinitely. The rate framework has been amended on several occasions, with notable effective dates including 1 July 1992, 1 July 2010, 1 July 2013, 16 December 2015, and changes in 2019.
A more recent revision matters for higher-value holdings. The Land Tax Amendment Act 2023 lifted the top two residential bracket rates, taking the 30% rate to 35% and the 50% rate to 55%, effective 1 July 2023.
Rate bands are revised periodically. Before budgeting a purchase, verify the current schedule against the official land tax page, as the top bands were increased by the 2023 amendment.
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How the Tax Base is Set: Annual Rental Value and the Valuation List
Land tax is not assessed on a sale price or a capital value. It is calculated from the annual rental value (ARV) assigned to each valuation unit, which represents the rent the unit could command in the open market.
Every five years the Land Valuation Department determines an ARV for every property and records it on the Valuation List. That list functions as the official register against which tax is charged, and the figures hold until the next cycle.
To set each ARV, the Department inspects properties and records measurements and photographs. The factors considered include:
- Location and property type, such as house, apartment, or condominium
- Size of the main living accommodation, measured by gross external area
- Size of any ancillary accommodation
- Amenities including swimming pools, docks, and tennis courts
The Valuation List holds more than 36,700 valuation units with a combined ARV of roughly BMD 1.3 billion. You can inspect it at any post office, at the Department's offices, or through the online search facility at landvaluation.bm.
One concession is worth knowing. Where a unit becomes uninhabitable, it may be assigned an ARV of BMD 0, which removes the land tax charge for the period it cannot be occupied.
Who is Liable: Owners, Long-Term Tenants, and Deemed Owners
The charge falls on the owner of each valuation unit, and payment is required twice a year. For a foreign buyer, this is a fixed annual cost of holding title, separate from the stamp duty paid on acquisition.
A point that catches many lessees by surprise concerns long leases. Where residential or commercial property is let for three years or more, the tenant is deemed to be the owner for land tax purposes, and that treatment overrides any clause in the lease that attempts to assign the cost elsewhere.
Non-Bermudians face a further restriction on what they may buy. Foreign purchasers may only acquire property above a set minimum ARV: BMD 126,000 for houses and BMD 25,800 for condominiums.
Owners and deemed owners gain access rights to the Department's online records for their property, while the bill itself is computed by the Office of the Tax Commissioner.
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Residential Property Tax Rates and the Banded Structure
The residential charge is built on six ascending bands of ARV. Each slice of value is taxed at the rate for its band, so liability rises with the property's assessed rental value.
| ARV Band (BMD) | Rate |
|---|---|
| 0 – 11,000 | 0.60% |
| 11,001 – 22,000 | 1.20% |
| 22,001 – 33,000 | 2.40% |
| 33,001 – 44,000 | 4.80% |
| 44,001 – 110,000 | 9.60% |
| 110,001 or over | 18.23% |
These bands apply to private dwellings. Keep in mind that the Land Tax Amendment Act 2023 raised the upper bracket rates, taking the 30% rate to 35% and the 50% rate to 55% from 1 July 2023, so high-value owners should confirm the figures applied to the top of the scale before they buy.
The structure rewards lower-value holdings and weighs heavily on premium homes. For a non-resident considering a high-ARV property, the marginal rate on the top slice is the number that drives the annual bill.
Commercial and Tourist Property Tax Rates and Empowerment Zone Relief
Commercial property follows a flat rate rather than a banded scale. For periods beginning 1 July 2019, the commercial land tax rate is 9.5%, down from the 12% that applied across the two half-year periods running from 1 July 2018 to 30 June 2019.
Relief exists for businesses operating in designated areas. Commercial property within an Economic Empowerment Zone is charged at 7%, a fixed concession aimed at supporting investment in those locations.
Accommodation used in tourism is taxed separately at 8.9%. A "tourist unit" covers a valuation unit forming part of a hotel, cottage colony, guest house, lodging house, club, or similar accommodation offered for reward.
Short-term rentals sit outside that definition and carry their own charges:
- Vacation rental units, as defined under the Bermuda Tourism Authority Act 2013, are excluded from the tourist unit category and are not treated as private dwellings.
- A vacation rental fee of 4.5% of the rack rate has applied to such units since November 2018.
- An annual rental property fee of between BMD 1,500 and BMD 2,500, set according to ARV, applies from 1 September 2023.
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Exemptions and Relief: Pensioners, Charities, and Flat-Rate Allowances
Most relief is targeted at occupiers and institutions rather than investors, but understanding the categories helps clarify why some properties carry no charge. Land tax applies to all developed land, with exceptions for government land, qualifying pensioners' homesteads, and certain charities.
Pensioner relief is the principal individual concession. An owner aged 65 or over who occupies a private dwelling may be exempted from up to BMD 1,791 in land tax each year, including a BMD 150 flat-rate component introduced from 1 July 2019.
That relief is capped by value. It applies only where the home's ARV is up to BMD 45,500, and tax remains due on any ARV above that ceiling.
Institutional exemptions cover property owned or occupied by the Bermuda Government, the Corporations of Hamilton and St. George, recognised schools, churches, and certain charities. Separately, the Tax Commissioner may grant hardship relief, deferring or waiving part or all of a charge where an owner cannot meet the liability.
If you disagree with a reassessment, you may object. The notice of objection must be filed within 28 days of the proposal date where it is served by hand or email, or within 31 days where it is served by post.
Billing, Payment Schedules, and Interest on Overdue Amounts
Demand notes are mailed ahead of the due date. If a statement does not arrive, the taxpayer should request a copy from the Office of the Tax Commissioner rather than assume nothing is owed.
Payment falls due twice a year, in March and September, on the date stated in the demand note. Late payment attracts interest at 7% per annum on the outstanding sum, which accrues from the due date.
Several payment routes are open to non-resident owners managing the charge from abroad:
- Online
- In person with cash or cheque
- By post (cheque only)
- Through a bank
An online Land Tax Calculator at forms.gov.bm helps estimate liability in advance. The Tax Commissioner's office is at the F.B. Perry Building, 1st Floor, 40 Church Street, Hamilton HM 12.
What Property Tax Means for Companies and Property Investors
Corporate ownership does not escape the charge. Land tax applies to all developed land, including real estate held through a company or trust, so there is no blanket exemption for entities that hold Bermuda property.
Holding through a corporate or trust structure can serve asset protection and succession planning aims, provided the entity meets local regulatory obligations. For most international businesses, though, the practical point is that exempted companies rarely own Bermuda real estate at all.
The wider fiscal setting reduces the friction around ownership. Exempted companies are not ordinarily subject to stamp duty, and stamp duty itself applies only to transfers of Bermuda property, so it does not reach international business that holds no local land.
Two further charges are relevant to a non-resident owner who lets property. A non-Bermudian granted permission to rent must pay 7.25% on the rental income after applying to the Department of Immigration, while providers of corporate services pay a separate 7% corporate services tax on revenue from exempted companies and partnerships. With no income tax, capital gains tax, or double taxation arrangements, foreign tax relief does not arise here.
The 2026 Revaluation and the Outlook for Property Tax in Bermuda
The five-yearly cycle is moving again after a long gap. The last full revaluation took effect in 2015, and the 2020 cycle was cancelled because of the COVID-19 pandemic, leaving the 2015 list in force for 11 years.
A new Valuation List is scheduled for publication on 31 December 2026, with effect for land tax from 1 January 2027, based on rental values as of 1 July 2025. Owners had to complete revaluation return forms online by 28 February 2026.
For this cycle the return process is fully digital. Forms were not mailed except for a small number of specialist commercial and tourist properties, and failing to file or supplying false information is an offence under the Act, punishable by a fine, imprisonment, or both.
Rental values have likely risen well above the 2014 reference level used for the existing list, so the 2027 ARVs may lift land tax materially across residential, commercial, and tourist property. Read the official 2026 revaluation guidance before forecasting future costs.
Conclusion
For a non-resident owner or investor, the variable that carries the most practical weight is not the rate band itself but the question of who the law designates as liable, because that determination can shift the tax burden from a Bermudian counterparty onto you in ways that a standard purchase or lease review may not surface. The 2026 revaluation is the concrete trigger to act on now, since revised annual rental values will flow directly into future bills before any new commercial arrangement has time to be restructured.
How Expanship Can Help Your Business in Bermuda
Expanship supports foreign owners with the land tax side of holding property, from interpreting ARV assessments and checking the band applied to your unit to managing the twice-yearly payment cycle, and we extend that support to the full set of obligations a foreign-owned entity carries in the jurisdiction.
- Company formation and structuring for property and trading entities
- Registered agent and registered office services
- Tax registration and filing, including land tax matters
- Ongoing compliance management and statutory filings
- Accounting and bookkeeping
- Introductions to banking partners
To discuss your requirements, contact Expanship Bermuda.
Frequently Asked Questions
Yes. An annual land tax applies to all developed land, charged on the annual rental value of each valuation unit under the Land Tax Act 1967. It is one of the few recurring direct taxes in a jurisdiction that levies no income, capital gains, or wealth tax.
The charge is based on the annual rental value (ARV) assigned to your property by the Land Valuation Department, not on its purchase price. Residential property is taxed across six progressive bands, while commercial property carries a flat 9.5% rate and tourist accommodation 8.9%.
Yes. Foreign owners pay annual land tax on the same basis as residents, along with stamp duty on purchase and other government fees, and they may only buy property above a set minimum ARV of BMD 126,000 for houses or BMD 25,800 for condominiums.
Land tax falls due twice a year, in March and September, on the date set out in the demand note from the Tax Commissioner. Unpaid amounts attract interest at 7% per annum from the due date, so a missed payment compounds over time.
Yes. Where a lease runs for three years or more, the tenant is deemed to be the owner for land tax purposes, and that treatment applies regardless of any clause in the lease that tries to shift the cost.
Quite possibly. A new Valuation List takes effect on 1 January 2027, based on rental values as of 1 July 2025, and because the existing list reflects values from 2014, many ARVs are expected to rise and increase land tax accordingly.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
