An Introduction To Stamp Duty

Stamp duty in Bermuda is a tax applied to documents, known as "instruments" under the tax. Any instrument signed in, or brought into, Bermuda is potentially liable to stamp duty, unless specifically exempt.

The Stamp Duties Act 1976 describes instruments chargeable to stamp duty, stipulates the consequences of failure to stamp, sets out the method for adjudication of stamp duty and stipulates the duty amount, the time limit within which the instrument is stampable and any exemptions from duty.

Examples of common stampable instruments are insurance premium receipts, conveyances, mortgages, reconveyances (which release mortgages), voluntary conveyances and affidavits.

It is important that liable instruments are properly stamped. Unstamped liable instruments are not generally admissible in court and so unenforceable i.e. of no practical use.