125+ web files in a constantly updated compendium on Bermuda's business, culture, cuisine, customs, districts, economy, education, food, geography, government, history, internet access, laws, parishes, politics, religions, traditions, wildlife etc. For tourists, business visitors, employers, employees, newcomers, researchers, retirees, scholars. Funded by and linked to The Royal Gazette, Bermuda's only daily newspaper.

Bermuda Cost of Living Guide

Consumer facts for all who visit or live in these Islands

By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online

To refer to this file use "bermuda-online.org/costoflivingguide.htm" as your Subject

Bermuda cost of living

Bermuda's cost of living is the highest in the world. According to the Bureau of International Economic Development, a private USA-based organization specializing in accurate cost of living indices, Bermuda's real cost of living rose by 11.2% in 2007 and is projected to rise by at least 12% in 2008. The local retail price index tells you otherwise. Mercer Human Resource Consulting wrote this author thus: "Please note that our ranking is based on 144 cities worldwide. Among those 144 cities, Tokyo and Hong Kong are the costliest cities worldwide. Please also note that our ranking does not include Hamilton in Bermuda. The choice of cities surveyed is based on the demand for corresponding data from companies and government organizations." 

The Hogg Robinson Group is another organization that does not include Bermuda - or any other offshore business center - in any of its surveys on where in the world there are the most expensive hotels, or costs of living.

It is recommended that Hogg Robinson and Mercer include, in future, Bermuda and other expensive international offshore business locations in their surveys and indices. They will find that Moscow, New York, London, Bangalore, Mumbai (Bombay) and Stockholm do not have the world's most expensive hotels, as they claim. Bermuda's hotel rates and general cost of living - and probably the same for other offshore international business jurisdictions too - are far higher overall than in Moscow, New York, London, Edinburgh, Manchester, Glasgow, Bristol, etc. World Bank economists have informed this author that the Bermuda costs of both hotel accommodation and costs of living are about 380% more than the USA, 280% more than in Canada and 220% more than in UK. 

Key cost of living factors include:

Estimated monthly expenses budget for newcomers & visitors

This is an unofficial but carefully researched guide and budget. It has long been said - inaccurately - that Bermuda is tax free. In fact, it has a combination of direct taxes (payroll tax on income, paid by employers and employers) plus a huge range of very high and non-deductible indirect taxes paid by every consumer rich or poor, young and old.  Newcomers should know payroll and general living taxes combined translate into a 20% tax as a percentage of income. The following list should be especially useful to:

• A single newly-employed or retired person who is not Bermudian who is not married and has no children (those who do should see "School Fees" below and add them to the budget if they apply)
• A single visitor or couple or family (prices shown do not include hotel or guesthouse or efficiency unit accommodation, as they can vary so widely in price. Nor does it include their gratuities and Government Occupancy and Resort Levy charges.
• Married newcomer couples with or without children. 
• Spouses of newcomers who are not Bermudian and not married to Bermudians are excluded by law from holding many lesser-paying jobs in Bermuda which are reserved for Bermudians and their spouses only. Costs for a retired person who is not Bermudian who is not working but would have to pay real estate taxes, may easily be much higher (see "Real Estate taxes" and Homes in Bermuda. 

Salary basics

• The average Bermuda Government salary was BDA$68,000 in 2007. It is by far the Island's largest employer.  
• The average private sector salary of locally-owned companies is about the same. But notable exceptions are the most senior executives of insurance companies who earn many millions of dollars annually, plus have stock and other bonuses and benefits galore. For more details, see Work Permits. 
• The average salary in a Bermuda-based but international or exempted company  - for middle or senior management or executive positions - is at least BDA or USA$88,592 a year, gross. It is because some senior executives earn hundreds of thousands - or millions of dollars in the case of some multinational insurance companies. But they are usually only for specialist positions with very high academic and professional qualifications and many years of considerable prior international experience in their industry.

BDA or US$$88,350 or pro-rata a month is the figure used to calculate the budget shown below. Those who earn more can save more. Some serious thought should be given by expatriates on whether or not it is feasible to come. For example, a professionally qualified person who is 33 years old, earns 45,000 pounds sterling a year in the United Kingdom and pays only 500 pounds a month for a 2-bedroom flat, may not find it practical to relocate to Bermuda. Private school fees will not apply to those without children. Those who earn less in Bermuda as expatriates should trim their budgets, style of living and, if possible, cost, place and style and spaciousness of accommodation. Those whose salaries do not permit them to buy a car but a moped only, or who buy a second-hand car and insure it for third-party insurance only, or whose owner can qualify for a no-claim bonus of up to 65 percent, can also reduce the budget. 

All prices are in USA or Bermuda dollars unless shown otherwise specifically and are monthly, or pro-rated.

Air Conditioning

Essential in Bermuda from May to October to live comfortably at home or in the office. Regular air conditioning units and more expensive but more versatile Carrier ductless mini split systems are available. 

Apartment or house rental agreements

Some newcomers receive a housing allowance from their employers of up to $,3500 a month. Standard monthly rental agreements - not leases - can be purchased but they should be viewed carefully before they are signed by a tenant and landlord. 

Things newcomers should always confirm include: 

• If a standard rental agreement does not say that the tenant can park his or her own car on the premises, this should be discussed by both tenant and landlord. In most cases, you should have no problems. But where they apply, avoid like the plague premises where such a basic right is not offered. It will generally mean one of two things, either that the apartment is not legally registered as a separate apartment - in which case, you cannot legally have a car on the property - or that the landlord has assigned the property to another person (not his tenant) to keep a car there, at your expense. 
• Whether the premises were house wired recently, both for regular domestic use and for telecommunications. Can you merely plug in to a wall outlet a cable television in a bedroom, living room and kitchen? Can you move a regular telephone anywhere? Will you be able to order and get high-speed Broadband (DSL) Internet service? If not, the wiring is old and may not to be replaced at huge expense and inconvenience.
• Is the hot water heater recent or how old and if old, how old? Will the landlord pay for repairs or replacements of any older unit? A plumber can take over two weeks to come. He might promise to come but not turn up a number of times. Not checking these matters may be both costly and involve a considerable wait and stress for repairs or service.
• Another common factor is noise. Stress to your landlord that you want peace and quiet, not noise from neighbors whose indoor or outdoor  parties involve amplified music at a high volume level. You will want your windows open from time to time.

Apartment or house painting

Most monthly rental agreements will stipulate that tenants, not landlords, are responsible for all periodic internal painting and upkeep but landlords will do external maintenance and upkeep.

Boats

See under "Boats" in Watersports.

Cameras and photography

Cellular & other telephones

Cigarettes

The retail cost in Bermuda of a carton is now about $48. Prices are less for residents going overseas if ordered beforehand for delivery after checking in at the airport for outward flights.

Customs (import) Duties for returning residents or visitors

Returning Bermudians, residents and visitors should expect to pay Bermuda Government import duties on purchases overseas at a much higher rate - about 300 to 500 percent higher overall - than in the USA, Canada and United Kingdom. 

Here, your duty allowance is only US or BDA $100 (it used to be $400 until the mid 1990s) per person per month, whether for individuals or families. It is by far the least generous place in the Northern and Eastern hemispheres in terms of import duty allowances. 

If you acquire and import goods of  a greater value, the great majority of tourists and locals pay about 22.5 percent of the receipted or Bermuda Customs assessed value of what you bring back. Newcomers should expect to pay this too. 

In UK, USA, Canada, Australia, New Zealand, newcomers are usually exempt from Customs Duties on what they arrive with and ship in. But not in Bermuda. For example, if you are Canadian, a stay in Bermuda or elsewhere entitles you to up to a Canadian $ 700 allowance. If you're from the USA and have been in Bermuda for at least 48 hours, you're entitled to a duty free exemption of $800 per person on returning home. Additionally, gifts under $50 in value may be sent home, to people other than to yourself, every 24 hours, duty free. And antiques (over 100 years old), prints, maps, coins and stamps are all duty free. Duty free allowances and exemptions don't prohibit you from buying more. 

Nationals of EEC countries visiting another EEC country and returning to their own have a very generous duty-free allowance.

When duties apply in your own country on goods purchased in Bermuda, you'll often find them very reasonable. 

Food & liquor shopping

Hotels

Expense of hotel rooms, by jurisdiction, most expensive first, year-round average daily rates with cooked breakfast, in US$.

Sources 

• *  Institute of North American & Atlantic Cultural History, based on information collected from guests.
• ** Business Travel International, UK.

Kitchen appliances

• Fridges & fridge/freezers, from US or BDA $1385
• Kitchen electric or gas ranges and cookers, from $925.
• Microwave ovens, from $380
• Washers from $775, dryers from $850 

Newcomers employed by the Bermuda Government

This is purely a guide, to show private sector employers and employees what the Bermuda Government does for certain staff. Some private sector employers may also follow this policy, or offer rent allowances instead, if appropriate.

When it employs expatriates, return travel for candidate, spouse and up to two children if appropriate and shipping and resettlement allowances are provided by the Bermuda Government. Because of the high cost of living in Bermuda and the finite resources in a very small land area yet with one of the highest populations anywhere per square mile or kilometer, families with more than two children are not normally approved. Employment for a spouse is sometimes available (especially if the spouse has a professional qualification) but is not guaranteed. 

For newcomers it employs, the Bermuda Government assumes responsibility to find suitable, furnished accommodation for contract officers (one bedroom for a single or married person, three bedrooms for a family with two children), and rent in excess of 25% of the contract officer's salary is fully subsidized. Candidates are expected to remain at the accommodation provided for at least three months but thereafter may choose to move into accommodation of their own choice. Rent in excess of 25% of the employee's salary will continue to be subsidized within reason.

But newcomers to Bermuda should note that each year, Bermuda Government bursaries are awarded to selected Bermudian applicants undertaking a course of study at a university, college or training institution in order to acquire professional or technical qualifications specified by the Cabinet as essential or desirable for appointment to offices in the Public Service. The annual allowance is accompanied by provisional undertaking of employment in the Public Service upon successful completion of the course of study.

There is also a supernumerary program. A supernumerary trainee is a Bermudian who is professionally and or technically qualified in a chosen career and needs post-qualification experience. Supernumerary officers are given favorable consideration for appointment to positions held by contract officers. There are now over forty trainees studying in various fields in the Bermuda Government.

Plumbing

See "Apartment or House rental agreements."

Professions supplementary to Medicine

In addition to whatever accreditation or registration professional employees in the list below are required to have overseas, local registration in the appropriate discipline must be obtained before practice is permitted in Bermuda. This applies to Addictions Counseling; Audiology; Chiropody; Dietetics; Diagnostic Imaging technology; Medical Laboratory technology; Occupational Therapy; Physiotherapy; Radiography; Specialist Diagnostic Imaging technology; Speech-Language Pathology. All involved who need registration should contact the Administrative Assistant to the Council, Ministry of Health and Family Services, P. O. Box HM 1195, Hamilton or telephone (441) 236-0224 extension 3441 for further information.

Real Estate taxes

Payable by owners of apartments, condominiums and houses, at rates approximately three times more in  Bermuda than in the USA, and Canada - usually passed on indirectly to renters in rents. See Homes in Bermuda. By comparison, the annual tax rate is CA$1500 (CA$125 monthly) for a nice 1,000 square foot condo in the Toronto area. 

School fees

If your child attends a local day private day school, at about $550 a month per child. Note that the child, if not Bermudian, will not qualify for any locally-offered scholarships when of college or university age.

125+ files on other aspects of Bermuda