Real Estate in Bermuda: Annual Rental Value

The Bermuda Government Land Valuation Department defines the Annual Rental Value of a piece of real estate in Bermuda as:

The rent at which a valuation unit might reasonably be expected to let from year to year if the tenant undertook to bear the cost of internal repairs, and the landlord to bear all other reasonable expenses necessary to maintain the valuation unit in a state to command that rent, but excluding any element attributable to any tax payable under the Act.

However, given that these valuations are carried out every 5 years, they often bear little resemblance to current market rates.

The Annual Rental Values are used to calculate Land Tax and also to determine if Bermuda real estate can be purchased by an overseas buyer. More information on Land Tax rates and Annual Rental Values can be obtained from the Land Valuation Department.

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