Stamp duty increases in last week's Budget will likely drive up the cost of buying a house in Bermuda, according to Ms Chris Valdes-Dapena, chairman of the real estate division of the Chamber of Commerce.

Among the stamp duty announcements, effective last Wednesday, was a new 10 percent stamp duty on profits gained through non-Bermudians selling their homes.

Other budget stamp duties included, as well as the new 10 percent stamp duty, increases to conveyances -- the transfer of property to another person or a trust -- stamp duty of the value of the property instead of just the equity, and a new stamp duty schedule on lease agreements on residential properties with rental values over $1,200.

"We requested clarification on (stamp duties) from the Ministry of Finance,'' said Ms Valdes-Dapena, specifically on the new 10 percent tax.

"We asked the Ministry of Finance; can the cost of renovations be deducted, is the 20 percent licence fee deductible, and if the vendor reinvests money made off the resale of a home into another Bermuda home is that deductible from the duty?'' said Ms Valdes-Dapena.

It remains to be seen if the homeowner passes this cost on to the new buyer by hiking the for sale price.

But according to Ms Valdes-Dapena, the stamp duties will in all likelihood show themselves in housing prices.

According to Ministry of Finance spokesperson Mr. Donald Scott, the vendor or seller, can apply to the Accountant General for adjudication on such matters and that option continues.

Under section 22 of the Stamp Duties Act 1976, application for adjudication has always been present, he added.

But Mr. Scott said the Ministry is "reserving judgment'' at this time on the Chamber's third question about reinvesting the money here by buying another Bermuda home.

Bermuda has a "unique market situation and we are talking about a restricted number of houses'' where inquiries can dealt with individually, he noted.

"Obviously some clients will pay more to complete the purchase of a house,'' concluded Ms Elizabeth Jones, partner at the law firm of Mello Hollis Jones & Martin.

The stamp duties will generate about $3 million in revenue, according to Finance Minister the Hon. David Saul's budget statement.