Save Big on Your First Home
Further Stamp Duty Relief for Those Purchasing Their First Home
The Bermuda Government is committed to helping first time homebuyers save money and therefore recently amended the Stamp Duties Act 1976 making it more affordable for Bermudians to purchase their first home. Now, any first-time home buyer purchasing a property worth up to $1,000,000 will not have to pay any stamp duty.
Real-Life Impact
A married couple has dreams of purchasing their first home for $1,000,000. Previously, along with the purchase price, the couple would be required to pay $34,000 in Stamp Duty charges. With the new amendments, the couple can now purchase that dream home without having to pay any Stamp Duty.
That is real savings for the people of Bermuda!
| Prior To Legislative Amendments | Since Legislative Amendments | Savings | |
| Purchase Price |
$1,000,000 |
$1,000,000 |
|
| Exemption |
$0 |
$1,000,000 |
|
| Amount of Purchase Price to Be Charged Stamp Duty |
$1,000,000 |
$0 |
|
| Stamp Duty Charges |
$34,000 |
$0 |
$34,000 |
Save Big on Your Mortgage Transfers/Refinancing
Transfer Your Mortgage Without the Extra Costs
The Bermuda Government is committed to helping those with mortgages save money as well. The recent amendments to the Stamp Duties Act 1976 also exempts homeowners with a mortgage of $1,000,000 or less from paying Stamp Duty if they refinance their mortgages with another financial institution, providing they are not increasing the amount of money borrowed.
Real-Life Impact
Mr. Jones has a mortgage of $800,000 and another bank is offering him a better interest rate. Previously, to transfer this mortgage it would cost Mr. Jones approx. $4,000 in Stamp Duty. With the new amendments, Mr. Jones can now make this switch without paying any Stamp Duty, allowing him to take advantage of lower interest rates and save money.
| Prior To Legislative Amendments | Since Legislative Amendments | Savings | |
| Mortgage Amount |
$800,000 |
$800,000 |
|
| Exemption |
$0 |
$800,000 |
|
| Amount of Principal Amount to Be Charged Stamp Duty |
$800,000 |
$0 |
|
| Stamp Duty Charges |
$4,000 |
$0 |
$4,000 |
Marginal Rates Provides Savings Opportunity
Homeowners now charged Stamp Duty on the amount that exceeds the exemption limit only
The Bermuda Government is also committed to provide savings with the introduction of marginal rates. The recent amendments to the Stamp Duty Act also made it so that first time homebuyers are exempt from Stamp Duty for the first $1,000,000 of the purchase price.
Real-Life Impact
If an individual were to purchase a $1,200,000 home, with the new amendments, they would only be charged Stamp Duty on $200,000 as the purchase price is $200,000 more than the $1,000,000 exemption limit. Previously, that individual would have been required to pay Stamp Duty for the full $1,200,000.
Again, that is real savings for the people of Bermuda
| Prior To Legislative Amendments | Since Legislative Amendments | Savings | |
| Purchase Price |
$1,200,000 |
$1,200,000 |
|
| Exemption |
$0 |
$1,000,000 |
|
| Amount of Purchase Price to Be Charged Stamp Duty |
$1,200,000 |
$200,000 |
|
| Stamp Duty Charges |
$46,000 |
$12,600 |
$33,400 |