The Bermuda Government today released a short video highlighting its Stamp Duty Amendment Act 2023.
In March 2023, the Bermuda Government made revisions to the Stamp Duty Act of 1976 with the aim of aiding first-time homebuyers and enhancing the equity of stamp duty fees. These changes involved increasing the exemption threshold, abolishing stamp duty fees for mortgage transfers, and implementing a system of marginal rates.
The government raised the Stamp Duty exemption threshold from $750,000 to $1,000,000, ensuring that first-time homebuyers acquiring properties valued at up to $1,000,000 would be exempt from paying any stamp duty.
Additionally, persons with existing mortgages, up to $1,000,000 can transfer their mortgage to another financial institution without incurring any Stamp Duty charges.
Premier and Minister of Finance, David Burt explained, “If an individual is holding a mortgage of $1,000,000 or less and becomes dissatisfied with their current mortgage rate and receives a more advantageous offer from another bank, the individual now has the option to transfer their mortgage without incurring any Stamp Duty fees, potentially saving them up to $5,000.
The Government has also introduced the concept of marginal rates. As a result, all first-time homebuyers, regardless of the purchase price, will be exempt from Stamp Duty charges on the first million dollars.
Premier Burt continued, “A First Time Home Buyer purchasing a property valued at $1,200,000 will only be paying stamp duty on $200,000, incurring $12,000 of stamp duty charges. In contrast, before the Stamp Duty Act 1976 amendments, they would have paid stamp duty on the full $1,200,000 incurring $46,000 of stamp duty charges and therefore ultimately save $34,000. That is real savings the Government is providing for the people of Bermuda.”