Government's recent Budget included plans to reduce Property Licence ("Licence") fees.

Combined with recent market corrections, this represents an excellent opportunity for non-Bermudians -- including Permanent Resident Certificate (PRC) holders -- to acquire a home in Bermuda. It is hoped that such opportunities for non-Bermudians will translate into an improved economy for Bermudians.

A License is required to acquire land in Bermuda unless you are on the Register of Bermudians or are a local company with Government approval to do so.

Land in Bermuda is widely defined to include "land ... and any building erected on land and any estate, interest, right or easement in, over or under any land or building".

Such extends to all residential homes and buildings, including condominiums, as well as to commercial buildings and other structures.

Typically, Licences are granted to an individual, an individual and spouse, or to members of an immediate family. Licences are rarely issued to trusts or to special purpose companies.

At current rates, the application fee for a Licence is $1,375 and is refunded if the application is successful.

It is rare for an attorney-prepared application to be refused.

If the Licence is granted, the full fee anticipated is eight per cent of market value for a home, or six per cent for a condo, and must be paid prior to property acquisition.

For PRC holders, the anticipated fee for condos is further reduced to four per cent.

Further, PRC holders (subject to obtaining a Licence and paying the relevant percentage fee) may purchase a home or condo with a single ARV of more than $63,600.

The percentage fees are to rise after 18 months to 12.5% of market value for a home, or eight per cent for a condo, or six per cent for a condo to be acquired by PRC holders, meaning that there is a Licence sale for 18 months.

Thus, PRC holders have a wider choice than other non-Bermudians who are limited to approximately five per cent of the market.

Not all Bermuda land is available for purchase by non-Bermudians.

Susan Thompson of Coldwell Banker Bermuda Realty says: "According to our current inventory, almost a quarter of the market is available to holders of Permanent Resident Certificates, with house prices starting at $1,100,000 and condos at $349,000.

Likewise, in the non-Bermudian market, houses start at $3,500,000 and we have condos starting as low as $560,000. With the new proposed license fees, we expect many will take advantage of these incredible prices."

The selling agent's particulars should advise if a specific property is available to non-Bermudians.

Property ownership does not automatically allow residence in Bermuda, however several options ensure that residence is permitted.

PRC holders may reside in their acquired Bermuda home on that basis and no further permits or consents are required.

Holders of a work permit may reside in their acquired Bermuda home during the currency of the work permit and no further permits or consents are required.

Other purchasers may apply for a multiple re-entry permit ("Permit"), allowing re-entry on a single ticket basis on any number of occasions during its validity and with ability to remain for up to 90 days after arriving (in each case). A Permit is valid for one year at a current cost of $108.

Technically, the Permit is only available after property acquisition is registered at the Office of the Registrar-General.

However, the Department of Immigration ("Immigration") recognises registration delays and (at present at least) grants the Permit on proof of purchase. If Immigration ceases to exercise discretion, a non-Bermudian purchaser may still enter Bermuda under usual tourist or visitor pre-conditions such as return air ticket etc.

If a non-Bermudian owner is fully retired from all business interests, does not have more than two dependent children and wishes habitual residence in Bermuda, a residential certificate may be granted.

As with all complicated legislation, there are exceptions to the rules so please consult an attorney who can assist with your planned acquisition.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.