Bermuda is an oversees territory for the UK, and enjoys the third highest per capita income in the world, more than 50% higher than that of the US. Its economy is primarily based on providing financial services for international business and luxury facilities for the tourism industry. A number of reinsurance companies have relocated to the Bermuda Island. Even more following the September 11th, 2001 attacks and after Hurricane Katrina, in 2005. This has contributed to the expansion of an already robust international business sector. Bermuda’s industrial sector is growing and construction continues to grow as well.
The affordability of housing has become a prominent issue over the past few years. The CIA World Factbook states that the average cost of a home in 2003 was $976,000; and in 2007 is at $1,845,000. What makes Bermuda so attractive to the foreign investor? Bermuda is an offshore financial center which results from its low direct taxation on personal or corporate income. It is the offshore domicile of many foreign companies. It has a highly developed business economy, that continues to grow, and is a financial exporter of financial services, primarily insurance, reinsurance, investment funds and special purposes vehicles. (SPV) Large numbers of international insurance are based in Bermuda, making the territory one of the worlds largest reinsurance centers. Many companies are exempted or internationally owned, and are currently registered with the Registrar of Companies in Bermuda.
Bermuda Taxes: Bermuda has both direct taxes in employment taxes paid by both employers and employees. There are many indirect taxes including import duties averaging 31% at wholesale value, and high death duties tax. Visitors pay a premium in all cost of imported goods and services. The biggest cost is to pay for the 51 paid legislators salaries, in a total of 20 square miles. The cost of living is 2.64 times the cost of living in the USA. This is one of the reasons for the IRS allowing Americans living and working in Bermuda a $76,000. exemption before they pay taxes.
Bermuda is a major business jurisdiction with many advantages. The most popular business opportunities for international companies, are mutual funds, commercial trading, and shipping. Other companies included are managers of consulting in insurance, insurance brokers, and natural resource companies etc… Bermuda is a major jurisdiction for many business investors in the world. There are more than 18,000 exempted and international companies. Under the Financial Services Act of the UK, there are many significant advantages for the business investor. Bermuda a very beautiful place to invest in and enjoy the benefits of an offshore business.
Due to government restrictions surrounding the foreign ownership of real estate in Bermuda, it is nearly impossible for non-Bermudians to invest in traditional real estate as it is scarce and prohibitively expensive.
There are, however, fractional ownership developments on the island that are available to foreign buyers. A great example is The Reefs Club which is opening next year. One-tenth ownership of two and three bedroom, furnished residences starts at $350,000. The Reefs Club is next to well-known hotel The Reefs, and it’s on the same private pink-sand beach. As opposed to whole ownership homes, The Reefs Club offers hotel-style services and amenities, allowing for luxurious, hassle-free whole ownership.
http://www.reefsclub.com
That last line in my earlier posting was supposed to read luxurious, hassle-free VACATION ownership.