Aug 2024
Prior to 31 March 2023 an application could be made for an “Economic Investment Certificate” by non-Bermudian individuals who invested at least BM$2.5 million in the island. The certificate was valid for a five years, after which an application could be made for a “Residential Certificate” (EIC). This gave an individual the right to reside in Bermuda indefinitely with their dependants.
On 31 March 2023, the Bermuda Government replaced the EIC with the current “Economic Investment Residential Certificate” (EIRC)[1], which continues to entice high-net worth individuals to Bermuda. The EIRC grants the holder Bermuda resident status from the date of issuance, allowing them to live (and seek employment) in Bermuda and enter and exit freely indefinitely. With the introduction of the EIRC, there is no longer a requirement to wait five years (like under the EIC) after making a “Qualifying Investment” before receiving residency rights.
What is an EIRC?
To be eligible for an EIRC under BIPA, an individual must make a “Qualifying Investment” in Bermuda which is an investment of at least BM$2.5 million (or the equivalent in another currency or asset) in one or more of the following:
- Residential or commercial real estate in Bermuda[2];
- An existing Bermuda-based business (including BSX listed entities[3]);
- The development and launch of a new Bermuda-based business;
- The Bermuda Sinking Fund;
- The Bermuda Trust Fund;
- A Bermuda Registered charity in the areas of sports development, youth, seniors and health; or
- Such other social or useful ventures that benefit Bermuda and Bermudians as may be determined by the Minister.
Bermuda Government bonds used to fall within the Qualifying Investment definition, but from June 2024 they are no longer an investment option for the purposes of an EIRC.
Where a “Qualifying Investment” has been made in a Bermuda business, an EIRC holder also has the right to an automatic approval of a work permit in relation to such business.
“Qualifying Investments” must be maintained at a minimum threshold value of BM$2,500,000 by the EIRC holder for at least five years. Additionally, the EIRC holder must reside in Bermuda for a minimum of 90 days in each calendar year for five years after receiving the EIRC. In order to retain the EIRC, verification that these requirements have been met are required by the end of the fifth year.
The Application Process
The EIRC application process is confidential with a current fee of BM$2,625. Non-Bermudian applicants must provide proof of making a “Qualifying Investment”, be at least 18 years old, of good character, and not convicted of an indictable or dishonesty offence.
Persons currently residing in Bermuda and who either prospectively or retroactively meet the eligibility criteria are able to apply for an EIRC.
Bermuda’s Business Development Agency (BBDA) provides a concierge service for applicants. Documents are required that validate the applicant’s identity and attest to his or her compliance with this eligibility criteria. Once all the necessary documents are received by the BBDA, the completed application is submitted to the Ministry of Economy and Labour for review and issuance of the EIRC.
Dependents
The spouse or partner and any sponsored dependent children[4] listed on the application by the EIRC holder will be granted a corresponding certificate entitling them to reside in Bermuda (without the right to work). To be eligible, spouses, partners and children must similarly not have been convicted of offences in or outside of Bermuda, be of good character and conduct.
If the spouse or dependent wishes to work in Bermuda, they are subject to the Bermuda Work Permit policy pursuant to BIPA.
Upon the death of, or separation or divorce from an EIRC holder, the right of the surviving or former partner or spouse to continue residing in Bermuda may be revoked. An application may be made within three months for the surviving or former partner or spouse to obtain the relevant certificate in their own right. The same eligibility requirements set out above will apply.
The EIRC policy is designed to be flexible to allow for a variety of different circumstances and to encourage investment into Bermuda, while providing holders the comfort of establishing residency in an established, stable and welcoming jurisdiction.
1 Pursuant to sub-section 32(5) of the Bermuda Immigration and Protection Act 1956 (“BIPA”).
2 Under BIPA, a non-Bermudian is considered a “Restricted Person” who must apply for a license to hold or acquire Bermuda land.
3 But excluding where the investment is limited to holding listed securities in exempted undertakings, per the Ministry of Economy and Labour’s Economic Investment Residential Certificate Policy (effective 31 March 2023).
4 Children who are 18 years or younger or 18 – 25 if enrolled in higher education.