Retiring in Bermuda: a complete guide
Learn all about the financial and legal requirements of settling in the island paradise of Bermuda.
Summary
Bermuda is one of the most expensive places in the world to retire, with an estimated average annual cost of $100,000 to $150,000+.
The official retirement age in Bermuda is 65, but private pensions are accessible from age 55.
Bermuda has no income, wealth, or capital gains taxes.
Find a financial advisor who can help you navigate the complexities of retiring in Bermuda.
What are the pros and cons of retiring in Bermuda?
Every country has its ups and downs, and Bermuda is no different. If you are considering retiring in Bermuda, you will find that this island paradise offers a unique blend of advantages and challenges:
Pros
Natural beauty: Bermuda's pink sand beaches, turquoise waters, and lush greenery create a tranquil retirement paradise.
Stable economy and political stability: A robust economy and political stability ensure a secure environment.
Favorable tax environment: No income, wealth, or capital gains taxes attract retirees seeking to maximize income.
No language barrier: English as the official language provides familiarity for expats.
High-quality healthcare: Modern facilities and skilled professionals offer retirees peace of mind regarding healthcare.
Cons
High cost of living: One of the most expensive places globally, challenging for retirees on limited budgets.
Limited space and strict immigration: Small island with restrictions on property and difficult residency requirements.
Isolation: Remoteness appeals to some but can feel isolating for those seeking city life or mainland access.
Weather: Prone to hurricanes, posing risks during the hurricane season (June-November).
Limited job opportunities: Difficult job market for those seeking to supplement retirement income.
What are the best places to retire in Bermuda?
Bermuda is home to a number of fantastic areas ideal for retirees. These are some of the best places to retire in Bermuda:
Hamilton: The capital city offers a vibrant atmosphere with shops, restaurants, cultural attractions, and services.
St. George's: A UNESCO World Heritage site with a charming old-world feel, perfect for those seeking a tranquil and culturally rich environment.
Paget Parish: Known for upscale residential areas and luxurious amenities, it is attractive to retirees seeking a prestigious and exclusive community.
Southampton Parish: Home to some of Bermuda's most beautiful beaches, including Horseshoe Bay, a good choice for retirees who enjoy outdoor activities and a relaxed lifestyle.
Warwick Parish: Centrally located with a mix of residential neighborhoods, parks, and golf courses.
What age can you retire in Bermuda?
In Bermuda, the official retirement age is 65, but private pensions can be accessed from 55.
Retirees can apply for residency through investment or financial self-sufficiency, and those 65 and over with sufficient contributions can receive a government-funded pension.
Seniors also enjoy various discounts on healthcare, medications, transportation, and other goods and services.
What is the average cost of retirement in Bermuda?
Bermuda is one of the most expensive places to retire due to its reliance on imports, limited space, high standard of living, and tourism.
Expect to spend $7,276+ a month for housing, food, transportation, healthcare, and other necessities.
Careful budgeting and a substantial retirement nest egg are crucial for maintaining a comfortable lifestyle.
Do you pay taxes after retirement in Bermuda?
Bermuda has no income, wealth, or capital gains taxes. However, retirees who emigrate to Bermuda may still be liable for payroll tax if working, property tax, and customs duty on imported goods.
US citizens remain liable for US taxes, including on Social Security benefits, but the US-Bermuda Tax Treaty can help avoid double taxation.
What programs are there for emigrating to Bermuda?
There are no specific retirement visas for those wanting to emigrate to Bermuda, but there are a few other options available.
The Economic Investment Certificate (EIC) is tailored for high-net-worth individuals ready to make significant investments on the island.
The Residential Certificate (RC) is for those demonstrating financial independence and the ability to support themselves without working in Bermuda.
What visas do I need to retire in Bermuda?
Bermuda doesn't have specific retirement visas but offers paths like the Economic Investment Certificate or the Residential Certificate.
Those who emigrate to Bermuda as retirees but still want to work can apply for a work permit, though it's competitive.
Additional requirements include proof of good health, a clean criminal record, character references, and proof of sufficient funds.
What are my healthcare options in Bermuda?
Bermuda offers high-quality healthcare through King Edward VII Memorial Hospital, private clinics, and various specialists.
The Bermuda Hospitals Board (BHB) operates public healthcare facilities, while numerous private providers offer additional services.
Health insurance is mandatory, with various local and international providers.
While the quality of care is generally high, healthcare costs can be substantial, making adequate insurance coverage crucial.
Is it safe to retire in Bermuda?
Retiring in Bermuda is generally safe, with a low crime rate compared to many other countries.
While violent crimes are rare, it's wise to exercise caution, secure your belongings, be aware of your surroundings, drive carefully, and be prepared for hurricanes.
The welcoming community and peaceful atmosphere make it a desirable retirement destination.
What is the housing market in Bermuda?
Bermuda's housing market is notoriously expensive and competitive, characterized by limited availability and high demand.
It's not uncommon to see prices between $6,196 and $11,555 or more per square meter for desirable properties in prime locations.
| Location | Average House Price |
|---|---|
| Location | Average House Price |
| Hamilton | $2,500,000 - $5,000,000+ |
| Paget Parish | $3,000,000 - $8,000,000+ |
| Southampton Parish | $2,000,000 - $6,000,000+ |
| Warwick Parish | $1,500,000 - $4,000,000+ |
| St. George's | $1,200,000 - $3,500,000+ |
What happens to my retirement benefits if I retire in Bermuda?
If you retire in Bermuda, you can generally continue receiving your retirement benefits, but specifics depend on your home country and benefit type.
US citizens can receive Social Security benefits, and the US-Bermuda Tax Treaty prevents double taxation.
Pension plans from other countries can often be transferred, and private retirement savings are accessible. However, be mindful of currency exchange and the high cost of living in Bermuda.
Is Bermuda a good place to retire?
Bermuda is an ideal retirement destination for those valuing natural beauty, a peaceful lifestyle, and tax advantages.
Stunning scenery, a relaxed pace, and a welcoming community add to its appeal, and the lack of income, wealth, and capital gains taxes attracts affluent retirees.
However, the high cost of living and limited space are significant drawbacks to retiring in Bermuda.
Get expert financial advice
Bermuda offers stunning beauty, tax benefits, and high-quality healthcare, attracting affluent retirees. However, it's expensive and has limited space.
Residency options include investment-based programs and those for financially independent individuals. While safe, be prepared for the high cost of living and hurricane season.
Unbiased can match you with an expert financial advisor who can offer retirement advice that will help you secure a comfortable future.
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