Sources of Law

• The law of England and Wales
  England and Wales
  England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
  
   as it stood in 1620 - of all kinds: common law, equity and statute - became the law of Bermuda at that time, and it remains so to the extent that other sources have not changed it.
• The Parliament of Bermuda enacts statute
  Statute
  A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
  
  s on all domestic legal issues.
• Bermuda has a body of delegated legislation
  Delegated legislation
  In the United Kingdom, delegated legislation is legislation or law that is passed otherwise than in an Act of Parliament . Instead, an enabling Act confers a power to make delegated legislation on a Government Minister or another person or body...
  
  .
• Precedent
  Precedent
  In common law legal systems, a precedent or authority is a principle or rule established in a legal case that a court or other judicial body may apply when deciding subsequent cases with similar issues or facts...
  
  s established in Bermuda courts are binding on equal and lower courts.
• Precedent
  Precedent
  In common law legal systems, a precedent or authority is a principle or rule established in a legal case that a court or other judicial body may apply when deciding subsequent cases with similar issues or facts...
  
  s established in the courts of England and Wales
  England and Wales
  England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
  
   have force in Bermuda to the extent that they are "on-point". This is an issue because Bermuda statute law and England and Wales statute law are usually different. A particular example of this has arisen since the implementation of the Woolf reforms
  Civil Procedure Rules 1998
  The Civil Procedure Rules are the rules of civil procedure used by the Court of Appeal, High Court of Justice, and County Courts in civil cases in England and Wales...
  
   in England and Wales in 1998, since they do not apply in Bermuda. The effect has been that case law on Bermuda court procedure, except local case law, has stagnated since that date.

Immigration

• Bermudian. Bermudian status
  Belonger status
  Belonger status is a legal classification normally associated with British overseas territories. It refers to people who have close ties to a specific territory, normally by birth and/or ancestry...
  
   can be obtained:

1. By birth. Although it is possible to be born Bermudian, simply being born in Bermuda
   Bermuda
   Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
   
    does not automatically confer this status. You must be born in Bermuda to a parent who holds Bermudian status, in order to be considered Bermudian by birth.
2. Through a lengthy period of residence. People who have attained Bermudian status in this way are colloquially, and somewhat disparagingly, known as "status Bermudians", although the title is something of a misnomer since someone who is Bermudian by birth can be said to have Bermudian status.
   • Spouse of a Bermudian. This status confers many of the rights of a Bermudian (free access to the job market, for example) but does not itself bring citizenship rights. People with this status eventually become Bermudian in their own right. However the status is lost if the marriage itself breaks down.
   • Permanent resident. People with a "permanent residence certificate" are entitled to reside in Bermuda, but they are not citizens and their children do not become Bermudian (unless those children become status Bermudians in their own right).
   • Guest worker. Persons with this status have no citizenship rights, and require a work permit in order to work, and to reside on the island (although the spouses and minor children of guest workers are entitled to reside in Bermuda, also).
   • Property owner. A person who owns property under a licence (see Property Law, below) does not thereby acquire any citizenship rights. However such people are entitled to reside in Bermuda.

Company Law

• Two types of company can be incorporated in Bermuda:

1. a local company, which is owned 60% or more by Bermudians; and
2. an exempt company, which is owned chiefly by non-Bermudians
   • As a matter of broad principle (to which there are many exceptions):
     • only a local company may trade in Bermuda (there is a similar restriction on foreign companies, and on non-Bermudian sole traders and partnerships);
     • only local companies are expected to contribute to the local economy through taxation.
     • exempt companies may have a physical presence in, and employ staff in, Bermuda.

Property Law

• All conveyancing
  Conveyancing
  In law, conveyancing is the transfer of legal title of property from one person to another, or the granting of an encumbrance such as a mortgage or a lien....
  
   in Bermuda is unregistered
  Land registration
  Land registration generally describes systems by which matters concerning ownership, possession or other rights in land can be recorded to provide evidence of title, facilitate transactions and to prevent unlawful disposal...
  
  . Bermuda has no equivalent of the 1925 property law legislation in England.
• Bermuda has no capital gains tax
  Capital gains tax
  A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
  
  es, but there is ad valorem Stamp Duty
  Stamp duty
  Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
  
   on sales and gifts of real estate.
• Generally, Bermuda real estate
  Real estate
  In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
  
   cannot be vested in a corporation
  Corporation
  A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
  
  , except:
  • in a trust company
    Trust company
    A trust company is a corporation, especially a commercial bank, organized to perform the fiduciary of trusts and agencies. It is normally owned by one of three types of structures: an independent partnership, a bank, or a law firm, each of which specializes in being a trustee of various kinds of...
    
    ;
  • in the management company of a condominium
    Condominium
    A condominium, or condo, is the form of housing tenure and other real property where a specified part of a piece of real estate is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights...
    
    ; or
  • in other cases with the permission of the minister, strictly limited by policy.
• Bermuda real estate cannot be vested in a non-Bermudian, nor in a trust which may benefit a non-Bermudian, unless a licence is obtained on behalf of the non-Bermudian. The fee for the licence is a substantial percentage of the market value of the real estate.
• With some limited exceptions, only real estate in the hands of non-Bermudians is available for sale to non-Bermudians.
• It is common for Bermuda real estate to be owned by trusts.

Trust Law

See also Trust law

Trust law

In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...

• It is illegal to act as a trustee, as a business, without a licence. Generally, licences are only granted to corporations, so almost all professional trustees are trust companies
  Trust company
  A trust company is a corporation, especially a commercial bank, organized to perform the fiduciary of trusts and agencies. It is normally owned by one of three types of structures: an independent partnership, a bank, or a law firm, each of which specializes in being a trustee of various kinds of...
  
  . A professional person may act as a trustee if (and only if) he or she has a connection with a licensed trust company, and delegates certain functions to that trust company.
• Unpaid private trustees are fairly common, although usually only for domestic trusts (see below).
• The residence
  Tax residence
  Definitions of residence for tax purposes vary considerably from state to state. For individuals, physical presence in a state is an important factor. Some states also determine residency of an individual by reference to a variety of other factors, such as the ownership of a home or availability...
  
   of a trust follows the residence of its trustees. A trust is therefore only Bermuda resident if a majority of its trustees are Bermuda resident.
• Generally, Bermuda tax law is generous in its treatment of non-Bermuda assets, which include foreign currencies even where held at Bermuda banks. There is usually no tax charge in Bermuda (for example, to Stamp Duty
  Stamp duty
  Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
  
  ) on settling non-Bermuda assets into trusts, nor on the income those assets produce, nor on their sale, nor on their distribution to beneficiaries. Like the other offshore financial center
  Offshore financial centre
  An offshore financial centre , though not precisely defined, is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds....
  
  s ("tax haven
  Tax haven
  A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....
  
  s") this has led to the use of Bermuda trusts by settlor
  Settlor
  In law a settlor is a person who settles property on trust law for the benefit of beneficiaries. In some legal systems, a settlor is also referred to as a trustor, or occasionally, a grantor or donor. Where the trust is a testamentary trust, the settlor is usually referred to as the testator...
  
  s and beneficiaries from higher-tax jurisdictions.
• By contrast, Bermuda assets are generally charged to ad valorem Stamp Duty
  Stamp duty
  Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
  
   upon being settled into trust.
• Bermuda (by statute
  Statute
  A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
  
  ) recognises the concept of non-charitable
  Charitable trust
  A charitable trust is an irrevocable trust established for charitable purposes, and is a more specific term than "charitable organization".-United States:...
  
   purpose trust
  Purpose Trust
  A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non-charitable purpose of some kind. In most jurisdictions, such trusts are not enforceable outside of certain limited and anomalous exceptions, but some countries have enacted legislation...
  
  s.
• Domestic trusts (that is, trusts settled by Bermudians, with Bermudian beneficiaries) are very common, due to the stamp duty legislation, which imposes a tax of up to 15% of the value of Bermuda-assets in an estate on death, but does not tax an interest in a discretionary trust.

Litigation and the Bermuda Court System

• Together with a number of tribunal
  Tribunal
  A tribunal in the general sense is any person or institution with the authority to judge, adjudicate on, or determine claims or disputes—whether or not it is called a tribunal in its title....
  
  s, Bermuda has a three-tier court system:

1. Magistrates Court, with a mainly criminal jurisdiction;
2. Supreme Court, with a civil and criminal jurisdiction, covers the roles of the English Crown Court, County Court and High Court.
3. Court of Appeal has equivalent status to the English Court of Appeal. There is a further right of appeal to the Privy Council
   Judicial Committee of the Privy Council
   The Judicial Committee of the Privy Council is one of the highest courts in the United Kingdom. Established by the Judicial Committee Act 1833 to hear appeals formerly heard by the King in Council The Judicial Committee of the Privy Council (JCPC) is one of the highest courts in the United...
   
    in London
   London
   London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
   
   .

Resources and External Links

• An exception is Bermuda Laws, an official site containing all Bermuda legislation
  Legislation
  Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
  
  , including delegated legislation
  Delegated legislation
  In the United Kingdom, delegated legislation is legislation or law that is passed otherwise than in an Act of Parliament . Instead, an enabling Act confers a power to make delegated legislation on a Government Minister or another person or body...
  
  .
• Bermuda Law Reports is a subscription service containing searchable copies of local cases
  Case law
  In law, case law is the set of reported judicial decisions of selected appellate courts and other courts of first instance which make new interpretations of the law and, therefore, can be cited as precedents in a process known as stare decisis...
  
  . This is an ongoing project, working backwards through the years, and therefore currently only contains cases reported since the mid-1980s.
• Skiffy's Legal Links, prepared by and named after Karen Skiffington, a Bermuda law librarian, contains a useful section on online Bermuda law.
• Conyers Dill & Pearman, Appleby Spurling Hunter and Mello Jones & Martin (http://www.mjm.bm/publications), the three largest law firms in Bermuda, each has a "publications" section on their website. Although intended primarily for marketing purposes, there are many articles on substantive legal issues. These are generally written in a style that is suitable for a client, rather than a qualified lawyer.