Dreaming of turquoise waters, pink-sand beaches, and pastel-colored homes? Welcome to Bermuda—a British island territory known for its tropical charm and high standard of living. But before you pack your bags, let’s talk about reality: the cost of living in Bermuda is one of the highest in the world.
Why Is Bermuda So Expensive?
Bermuda isn’t like other island getaways. Its unique location in the North Atlantic means that almost everything is imported, from fresh food to fuel. Combined with strict import duties, limited land, and a strong economy, these factors contribute to Bermuda’s high cost of living.
- Low crime rates
- World-class beaches and diving spots
- High-quality education and healthcare
- Favorable tax laws (no income tax)
Average Monthly Cost of Living in Bermuda (2025)
| Category | Estimated Monthly Cost (USD) |
|---|---|
| Rent (1-bedroom apartment) | $2,500 – $4,000 |
| Utilities (electricity, water, Wi-Fi) | $400 – $600 |
| Food (groceries & dining) | $800 – $1,200 |
| Transportation (car or public) | $200 – $500 |
| Healthcare & insurance | $300 – $600 |
| Entertainment & other | $300 – $500 |
| Total | $4,500 – $7,400 |
💡 A single person needs at least $4,500/month to live comfortably in Bermuda in 2025. A family can expect to spend upwards of $8,000/month.
Housing and Rent
Housing is the largest monthly expense in Bermuda. Due to limited land and zoning restrictions, rental prices are sky-high.
- 1-bedroom apartment in city center (Hamilton): $3,000/month
- 1-bedroom outside city: $2,300 – $2,700/month
- 3-bedroom home or villa: $5,500 – $8,000/month
Utilities and Internet
Expect to pay a premium for basic services.
- Electricity & water: $300 – $500/month (Bermuda collects rainwater and stores it in tanks, so water quality and access vary)
- Internet: ~$120/month for mid-to-high speed plans
- Cell phone plans: Around $80/month
Food and Dining
Nearly all food in Bermuda is imported, which means grocery costs are among the highest globally.
- Grocery shopping: $600–$900/month for one person
- Dining out:
- Casual meal: $25 – $35
- Mid-range 3-course dinner: $80+ per person
- Coffee: $5 – $7
- Milk (1L): $3.50
- Eggs (12): $5.50
Tip: Local fish, seasonal fruits, and farmers’ markets can help reduce your food bill slightly.
Transportation
Bermuda has no ride-sharing apps like Uber or Lyft, and car ownership is highly regulated (each household can only own one car).
- Car purchase + maintenance: Expensive (due to import duties)
- Gasoline: $8–$9 per gallon
- Bus & ferry passes:
- Monthly: ~$69
- Pay-per-ride: ~$5
Healthcare
Bermuda’s healthcare is high quality but private, and insurance is mandatory for residents and expats.
- Health insurance premiums: $400 – $700/month
- Doctor visit (uninsured): $100 – $200
- Emergency care: Can cost thousands without insurance
Bermuda does not offer universal healthcare, so private insurance is a must.
Taxes in Bermuda
Bermuda is considered a tax haven, with:
- No personal income tax
- No capital gains tax
- No VAT or sales tax
However, the government makes up for it through import duties and payroll tax (which is often deducted by employers).
This tax setup makes Bermuda attractive for high-income earners and financial professionals.
Is Bermuda Affordable for Expats?
Only if you're well-compensated.
Expats typically move to Bermuda with employer relocation packages, especially in finance, insurance, or tourism sectors. A single person earning less than $100,000/year will find it challenging to cover all costs comfortably.
That said, the quality of life is high—Bermuda offers a clean, safe, and scenic environment with easy access to nature, water sports, and a tight-knit community.
FAQ
Q: Can I live in Bermuda on $3,000/month?
A: Not comfortably. Rent alone often exceeds that amount. Most residents need $4,500/month or more to live modestly.
Q: Are there affordable housing options in Bermuda?
A: Shared accommodations or studio rentals outside Hamilton may offer lower prices, but options are limited.
Q: Is healthcare free in Bermuda?
A: No. All residents must carry private insurance, and healthcare is expensive without it.
Q: Are groceries really that expensive?
A: Yes. Because nearly all food is imported, grocery prices can be double or triple those in the US or UK.
Q: Is Bermuda good for retirees?
A: Possibly—if you have sufficient income or savings. Retiree residency options exist but are selective and costly.
Conclusion
Living in Bermuda in 2025 comes with a hefty price tag, but it offers an unmatched combination of safety, beauty, and island lifestyle. While it’s not ideal for budget travelers or digital nomads, it’s a fantastic destination for those with strong income or employer support.
✨ If you're considering moving to Bermuda, make sure your income aligns with the cost—and enjoy island life with your finances in check!
