Government announces changes to EIRC investments

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Created: Jun 09, 2024 03:45 PM

Jason Hayward, the Minister of Economy and Labour, has announced changes to the Economic Investment and Residential Certificate requirements (Photograph by Blaire Simmons)

Investing in government bonds will no longer be an option for people applying for an Economic Investment and Residential Certificate, the Government said today.

The EIRC was launched in 2019 as a way of encouraging people to invest in the island’s economy.

Those who invest $2.5 million in specific Bermuda industries, sectors, charities, or government programmes, receive residency rights.

As of June 5, the EIRC policy had resulted in investments of more than $482 million, which included $218.7 million in real estate investments, the Government said.

Among the investment options was purchasing Bermuda Government bonds and holding them for at least five years.

“However, ensuring the EIRC holder maintains their investment for the complete period requires tracking ownership of those bonds, which has proved challenging,” said a government spokesman.

“Additionally, the economic impact of purchasing the bonds is greatest at issuance, and the Government does not have immediate plans to issue new bonds.

“As a result, Bermuda Government bonds are removed from the list of qualifying investment options with immediate effect.”

The total invested government bonds was just over $2.6 million stemming from one application resulting in two EIRC holders.

Jason Hayward, the Minister of Economy and Labour, said: “The objective of the EIRC is to generate economic growth, ultimately benefiting all who call Bermuda home.

“With that in mind and the interest of our people, Bermuda Government bonds had to be removed from the list of qualifying investment options.

“Despite this change, I am confident the impact will be minimal, as Bermuda Government bonds were not the primary investment vehicle used by EIRC holders.”

For information on the Economic Investment and Residential Certificate Policy, click here.