Bermuda Cost of Living Guide

125+ web files in a constantly updated compendium on Bermuda's activities, art, business, culture, cuisine, customs, daily newspaper, disability accessibility, districts, economy, education, entertainment, environment, fauna, flora, food, gardens, geography, government, history, internet access, laws, lodging, parishes, politics, religions, traditions, transportation options, tourism, vacation planning, 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 residents and visitors

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

Bermuda cost of living overall

The World Bank rates Bermuda as the most affluent country in the world, by far. But also be aware Bermuda's cost of living is one of the highest in the world. This is not in any way intended to deter you from coming, simply to alert you in advance to the fact that Bermuda is a lot more expensive a place to live and work than you'll be told by many head-hunters and recruiters based in other countries who have not actually lived and worked in Bermuda themselves recently or at all. Being forewarned about accommodation costs and other cost of living prices will enable you to negotiate more accurately with a prospective Bermuda employer for a realistic starting salary and benefits package to enable you to balance your monthly budget and match it to what you can afford. It's far better to know upfront what to expect so you are not surprised but can plan accordingly than to be dismayed by revelations after you arrive that were omitted. Bermuda's charms can be very attractive propositions to those who can command high salaries to more than compensate for those costs of living. But for those not earning those high salaries, say under US$88,000 a year where they are now employed, they might be far better off overall staying where they are than in moving to Bermuda on a Work Permit. Why? Simply because most people expecting upward mobility go abroad to places like Bermuda and rightly expect better accommodation and conditions than they have now.

The Bureau of International Economic Development, a private USA-based organization specializing in confidential and accurate cost of living indices, and World Bank economists, claim the Bermuda costs of living are about 380% more than the USA, 280% more than in Canada and 200% more than in UK. Bermuda's real cost of living rose by 11.9% in 2008. The local retail price index is not an accurate indicator.

If you go to organizations such as Hogg Robinson and Mercer Human Resource Consulting they exclude Bermuda - and similar offshore business jurisdictions, also all tax havens - completely from their lists of costs of living by place.

Key cost of living factors include

Item	Details
Housing	# 1 by far. See Homes in Bermuda. Housing costs can be much less onerous if employer offers a housing allowance. Many employers now do this routinely for their imported staff. Once - but no more - it was sufficient for Bermuda-based employers to offer to pay accommodation for the first few weeks, to enable them to find their own. This is not a practical proposition in Bermuda where the demand for accommodation far outstrips supply and the population per capita is 3,500 per square mile, one of the highest in the world.
Food	2-3 times more overall than in USA/Canada, more than in UK
Automobile cost	Only one per household allowed. About twice UK, Canada and USA prices.
Automobile licensing annually	Many times more than in USA, much more than in Canada and UK. For example, it costs about $1,000 locally for annual licensing of a larger car.
Gasoline - for automobile or moped/scooter	BD$2.00 per liter on June, 2008 (not per gallon), three+ times more than in USA and Canada, about the same as in London, England.
Electricity	About $0.40 per KwH in June 2008, including Fuel surcharge
Cable or satellite TV	More than twice US prices but about the same as in UK (and with far more useful channels than in UK)
Telephoning overseas	Least costly rate is $.0.16 per minute anytime from home. (But less expensive to call UK from Bermuda than Bermuda from UK). Skype may offer an attractive rate from Bermuda to the USA, Canada, UK, EWurope.
Overseas newspapers	2-3 times published prices in place of origin (but the local daily newspaper is a bargain in quantity and quality compared to UK)

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:

Salary basics

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

Accommodation	$3,285 is the 2009 average monthly rental for a small unfurnished 1-bedroom apartment	Rent of place to live. Expect to pay appreciably more to live in one of the choice modern apartment blocks in the City of Hamilton. Some newcomers receive a housing allowance from their employers. Better employers, usually international not local, now do this routinely. Most of the recent rental activity was in the $4,000 to $7,000 monthly range. The rental market is always busy and buzzing, but as with all sectors of the economy, there is an element of caution amongst consumers. The majority of prospective tenants are currently in Bermuda and looking for alternative accommodations, rather than the previous market of majority new arrivals. There is always interest in the $4,000 monthly and below market but these apartments are not usually in the desirable near-Hamilton area. Newcomers are advised not to pay any more than 28% of their salary on accommodation if they do not receive a partially compensatory housing allowance. Utilities are always extra.
Alcohol and cigarettes or cigars	$140, estimate only	Not if you don't use them. They are very expensive in Bermuda - over $5 a pack of cigarettes.
Books, magazines, newspapers	$140	Local and international
Cable television	$145	Full service, all movie channels, several TV sets
Car insurance	$270	Assuming comprehensive, with no local no-claims bonus yet, for a newcomer. Based on a reputable local insurance company written quote of $1,694.26 annually prorated monthly
Car payment	$560	To local bank. Assuming new car
Car annual licensing	$105.00	Monthly portion of annual cost for a larger car by Bermuda standards (compact in USA). In comparison, the monthly cost near Toronto is CA$4.69, based on registering a fairly new Mazda Protégé for 2 years + for CA$225
Car gas (gasoline, petrol) and commuting costs	$420	Car, including depreciation, gasoline or petrol at US$1.31 a liter - mostly because of a huge Bermuda Government import duty - and workday parking. To compare, gasoline in the United Kingdom is about the same; in Ontario is CA$0.80 a liter, less than half the Bermuda price; and USA less than a third of it
Clothing and shoes	$190	Acquired locally
Company Pension	$470	Deducted by employer for a contributory corporate pension, approximately based on a salary of US 79,692 a year
Credit Card payments	$390	International and local charge-cards.
Deductions from paycheck	Varies hugely	For newcomers, about 15 percent of an employee's monthly gross salary is deducted by the employer for the employer's portion of the Bermuda Government's Payroll Tax, Company Pension, Bermuda Government's Social Insurance, Life Insurance if provided by the employer and Health Insurance.
Departure & Passenger Taxes	$35 per person	See under Airport
Lunches and Dinners	$350	Occasionally (once a week), at restaurants
Education	$620 per child	Applies if you have children of school-attending age and send them to a local private day school
Electricity	$330	Excluding air conditioning May to September. A three bedroom two or three bathroom house will cost at least $400 a month with air conditioning. Much of the local price is because of a huge Bermuda Government import duty, plus a Fuel Adjustment charge of 25%.
Film processing	$65	Based on 1 roll of 36 a month for same-day service. At about $6 a film and $28 for processing 1 roll of 24 exposure 35 mm film, compared to about $6.50 in USA and equivalent in UK
Food, groceries	$640 per person or $800 for 2 or $1100 for 3	See separate paragraph below for more details. Food shopping, including liquor (much of the local retail price of which - averaging $26 a liter - is because of a huge Bermuda Government import duty). Purely as one item, milk costs US$3.50 a half gallon. As a comparison, near Toronto, it is CA$1.20 a quart. But USDA approved meat may be less expensive in local grocery stores than in Toronto. Excludes amount for alcohol and cigarettes or cigars
Grooming	$140	Hair cutting and other. Here, a basic man's hair cut costs from US$22 a time at the cheapest place plus gratuity and a woman's - with no perm - from $55 plus gratuity. Government has a 22.5% at wholesale level tax on all personal grooming products.
Health Insurance, major medical, usually only until 65 or termination, whichever sooner	from $335, single employee	For a single person with no spouse or children - 50 percent of what is offered by an employer. Add at least $188 for a dependent or dependents only; add at least $183 for an unemployed spouse only; add at least $375 for an unemployed spouse and dependent or dependents. If possible, work for an employer paying 100% of the cost for an employee, even if it passes to employees 100% of the cost of health-insuring children or unemployed spouses or both.
or HIP	from $1215, single person	Non-Bermudians should avoid all employers offering only HIP, which is Government-owned, full of exclusions, no doctors visits, prescriptions only up to $1,000 a year.
Home entertainment	$185	Purchase of televisions, stereo, CDs, DVDs, etc.
Household insurance	$240	If renting a 1 bedroom apartment
Internet access, personal	$99.95	Unlimited ADSL (Broadband) at 2 Mb speed
Life insurance	$95	Through a local employer, covering approximately twice annual salary of US$80,592. This excludes the cost of other life or term insurance you may have which is not employer based
Medical contingencies	$280	For items not or only partially covered by Health Insurance, such as doctor's visits, dentistry, prescriptions
Movies	$95	At local theaters
Newspapers (local)	$49.25	To keep up with the news
Other	$400	Contingencies or memberships. For example, see "Professions Supplementary to Medicine" below. Much more if you pay for memberships of beach clubs or golf clubs or tennis clubs or yacht clubs
Overseas purchases tax	$195	Overseas, duty free allowances on imports are very generous (ie EU, USA of $800,etc) before nominal tax. But in Bermuda they are only $100 per resident per trip and very high - nearly 30%- after 1st $100 per person.
Payroll Tax	$420	Bermuda Government payroll tax purposes is a percentage of gross salary, with an employer liable for 50 percent of the amount payable by the employer. Amount here is for an average salary.
Real Estate Tax	see "Real Estate Taxes"	Not for renters but owners (but built in to rents)
Social Insurance (local social security)	$190	Compulsory, payable by employee with a matching amount from employer, regardless of any employer-provided pension coverage. Self-employed persons pay for both employee and employer. This new rate went into effect on 5 August 2002. Employed persons over 65 pay nothing but their employers do. When newcomers leave Bermuda they should write to the Department of Social Insurance to see if they qualify to claim back what they paid in.
Sports clubs	from $180	Excluding beach clubs, golf clubs, tennis clubs, yacht clubs
Telephone	$75	Basic, local, home phone with 50 free local calls excluding Internet calls
Telephone	$95	If you have cellular
Telephone	$60	Long distance charges.
Telephone	$45	Internet calls, at 50 cents per hour after 50 free social calls allowance have been used
Vacations	$690	Monthly, for 2, more per family
Overall	$7,800+	A month, depending on your spending habits

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.

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

Cameras and photography

Cellular & other telephones

Cigarettes

The retail cost in Bermuda of a carton is now over $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$.

Kitchen appliances

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

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.

Place	January to December 31 2007
* 1. Bermuda (island-wide)	$347.00
** 2. Moscow	$317.00
** 3. Rome	$294.00
** 4. Bangalore	$267.00
** 5. Paris	$264.00
** 6. New York	$263.00
** 7. Milan	$255.00
** 8. London	$250.00
** 9. Geneva	$245.00
** 10. Athens	$242.00
** 11.Stockholm	$241.00