The Bermuda Immigration and Protection Amendment Act 2007 is an amazingly bad law because it treats the marriage between a Bermudian and a non-Bermudian at the same level as illegal fronting of real estate transactions. It hurts Bermudian families.
Ironically, the move comes at a time when Government is sanctioning more property than ever to be sold to foreign non-resident buyers, through the large enclaves at Belmont, Newstead, and Tuckers Point. They spin these as “fractionally owned tourist accommodations” and “condominium hotels” but they are real estate deals and Government loves them because they carry a 22% acquisition fee on the property value.
Or do they? Buried in the depths of Guidance Notes for the new Act (page 43) is a brand new class of property: the luxury “residence hotel”. There currently are no such developments in Bermuda (in fact I can find no other mention of the class in Bermuda law or published policy) but I think you can guess where the first will be.
Designed for the ultra rich, the Government will provide both a reduced acquisition fee of 15% as well as substantial hotel concessions relief (which has typically included duty free imports of construction materials as well as lower land, payroll, and occupancy taxes) if the new foreign owner will allow their property to be used as hotel accommodations when they do not want it. The contract requirements are not defined and likely would be unenforceable in any case.
So, to cut to the chase, the Guidance Notes tell us:
- If you are Bermudian married to a non-Bermudian who wishes to make their life here, the law will discriminate against you, no room for discussion.
- If you are a connected developer with rich international buyers, let’s do a backroom deal!
That’s called adding insult to injury.
Gated Communities // Nov 20, 2007 at 3:01 pm
[...] properties to be sold to foreigners, gated communities for the rich, presumably with accompanying tax discounts from the Bermuda [...]