Bermuda encourages investment with residential certificates
On March 31, 2023, the Bermuda Government replaced its previous tool intended to attract capital to the island, through residency incentives, with the Economic Investment Residential Certificate programme.
As of last autumn, the EIRC initiative had reportedly resulted in more than $500 million of investment into Bermuda’s real estate, existing local enterprises and new businesses.
The EIRC is no doubt attractive to potential residents interested in all that Bermuda has to offer. It grants an applicant, spouse and specific dependents immediate Bermuda residency rights in exchange for a qualifying investment of at least $2.5 million, allowing them to reside here.
Importantly, because the EIRC is only a residency certificate, it does not entitle the holder to status as a Bermudian, spouse of a Bermudian or Permanent Resident’s Certificate holder.
However, after a qualifying period of residence in Bermuda, a holder of an EIRC may apply for British Overseas Territory status.
According to the relevant Ministry of Economy and Labour policy, qualifying investments include one or more of the following:
- Buying residential or commercial real estate in Bermuda
- Contributing to Bermuda’s sinking fund for debt reduction or the Bermuda Trust Fund
- Donating to a Bermuda charity for sports development, youth, seniors or health
- Making a direct or indirect equity investment in an existing Bermudian-based business, including Bermuda Stock Exchange-listed entities, but excluding investments limited to holding listed securities in exempted undertakings, ie, essentially those focusing on trading outside of Bermuda
- Investing in the development and launch of a new Bermudian-based business
- Contributing funds to a different social or other useful venture benefitting Bermuda, Bermudians and things Bermudian as may be determined by the Bermuda Government
Although government bonds at one point fell within the definition of a qualifying investment for the purposes of an EIRC, that is no longer the case.
Predictably, the most popular investment by applicants appears to be buying real estate, followed closely by directing funds towards a new business.
If considering an EIRC application based on a real estate investment, potential applicants should note that acquisition of residential Bermuda real estate by individuals who are not Bermudians, spouses of Bermudians or PRC holders is usually restricted to high-end homes that can only be purchased with a government-granted land licence.
In addition, international residential owners are subject to rental and development restrictions aimed at avoiding loss of opportunities for Bermudian landlords, hoteliers and developers.
For potential EIRC applicants planning on making an investment in a new Bermuda business, it is important to keep in mind that Bermuda also has what is locally known as the 60/40 rule, requiring that at least 60 per cent of a company that does business in Bermuda is owned and controlled by Bermudians. In certain instances, the Minister of Finance can, in his discretion, by licence, relax the 60/40 rule.
An EIRC holder who has invested in a business is entitled to the automatic approval of a work permit for that business.
An application for an EIRC can be pursued by contacting the Bermuda Business Development Agency, which provides a concierge service for applicants.
The precise information required to apply will depend on the type of investment made but will include documents validating the applicant’s identity and good character, as well as the investment made.
Once all required documents are submitted to the BDA, the application can be processed by the Government and the EIRC issued. There is no limit to the number of EIRC applications the Government expects to approve.
The application fee for an EIRC is $2,755, which is a one-time cost, as an EIRC does not expire.
The EIRC is open not only to non-Bermudian applicants from abroad but may also be applicable to individuals who already reside in Bermuda and have made qualifying investments in the past. In such cases an EIRC can be granted at the discretion of the Government.
Once an EIRC is granted, the qualifying investment must be maintained at a minimum threshold value of $2.5 million by the EIRC holder for at least five years and the EIRC holder must reside in Bermuda for a minimum of 90 days in each calendar year for those five years.
First Published in The Royal Gazette, Legally Speaking column, June 2025
