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Bermuda Cost of Living

Bermuda Cost of LivingOne of the first items that many inquire about when considering a relocation of this nature is the relative cost of living.  While the cost of living varies somewhat from location to location, we'll focus on Bermuda as an example in this article.

First of all, salaries in Bermuda are quite competitive and as of April 1 2011 subject to only a 5.25% (maximum) payroll deduction - essentially tax free!  For Canadians, this is a huge drop in taxes and you'll notice a large difference in net pay on your first pay stub.  The lack of tax (not to mention the international experience and incredible lifestyle!) is certainly one of the major incentives for many that choose to pursue a career opportunity in Bermuda.

Bermuda's cost of living is quite high, but in order to get a true picture, we recommend constructing a budget to examine what you will earn relative to your expenses on the island.

Without doubt, renting accommodation in Bermuda will be your single largest expense.  The cost for housing varies depending on several factors including location, size, furnished or not and what facilities are available.   Generally speaking, the closer you live to Hamilton, the more expensive it will likely be.  However with the island being so small, it's very easy to commute in from anywhere.

Most products are imported to Bermuda which tends to increase the cost somewhat of day-to-day items when compared with similar products in Canada, though again there are other factors to consider: There is no sales tax in Bermuda which helps to bring the prices down quite a bit (eg. no 13% HST added to the sticker price).

Also to be considered in your calculations is the lack of need for a car (and car insurance) - which for most of us is a huge monthly savings.   Scooters, walking and/or public transit are all inexpensive and easy ways to travel in Bermuda.  The lack of car expenses when combined with the low tax usually more than covers the increase in housing and daily expenses.

All in all, living and working in Bermuda represents an exceptional opportunity for those who are able and choose to do so.   At the end of the day, even with the increase in cost of living, these opportunities certainly allow for an increase in earning potential.   While it's not a get rich quick scheme, most people find that they are able to come back after a few years with significant savings - no doubt a large reason why there are so many Canadians living and working in Bermuda!

Author: Jason Squires