Fronting law softened to only include new purchases
A new law which effectively prevents Bermudians married to foreigners for less than a decade from buying more than one property will not be retrospective.
The Department of Immigration confirmed yesterday that Islanders who already own additional properties which their expatriate spouses benefit from or contribute to can keep them — provided they apply for and obtain a licence from Government.
But as of June 22 this year — when the Bermuda Immigration and Protection Amendment Act 2007 became law — mixed status couples are no longer allowed to purchase more than one property.
Those that have bought extra property since June 22 — be it private residences or business property — will have to sell it before June 2010.
Campaigners against the new Act gave a cautious welcome to the clarification last night — but Ronnie Viera, who has set up a group to protest against the law, said it was not good enough.
"People are still restricted after June 22 and there are a lot of people who have complained about that to me," he said.
Mr. Viera said the new law discriminated against Bermudians married to expats. "Although they have softened their stance there has been no indication that they are going to amend their Act. It means that they could always change it and decide to make it retrospective in the future."
Shadow Immigration Minister Trevor Moniz said: "The new law is somewhat harsh towards Bermudians married to non-Bermudians.
"At least the Minister has recognised this to some degree and softened the law by grandfathering in those people who already own more than one property."
He added: "I'm not sure it goes far enough, though it's a start. There is some recognition that it was unfair."
Mr. Moniz said though the law was designed to outlaw fronting — where non-Bermudians gain an interest in land here by using a Bermudian "front" — he was not sure how this aspect of the legislation would help to do that.
And he questioned whether the Department of Immigration would be capable of getting the processing time for a licence for properties down to four weeks, as pledged by Immigration Minister Derrick Burgess.
"A lot of people are unconvinced by that promise," he said. "Immigration is overloaded. Can they actually achieve this? Will getting a licence be onerous?"
The clarification on how to interpret the law regarding extra properties came from Labour and Immigration permanent secretary Robert Horton.
He explained that when a non-Bermudian spouse contributes towards mortgage payments or benefits from rent received for a property, a constructive trust is created with their Bermudian partner.
"Under the new legislation, the Bermudian is required to obtain a licence under section 77 of the 1956 (Bermuda Immigration and Protection) Act," he said.
"The limit of one licensed property to any given non-Bermudian is a matter of policy and is not built into the law. Bermudians and their non-Bermudian spouses now find themselves in the position of requiring licences where these constructive trusts have been created. It would be unfair and probably unconstitutional to force Bermudians to sell their properties that are caught in this way."
He said the Minister had decided that Bermudians who were constructive trustees for their non-Bermudian spouses' equitable interest in land in Bermuda would be granted a licence for each property acquired before June 22, 2007.
The licences have to be applied for in each case and applications must be made before June 22, 2010.
Mr. Horton added: "From June 22, 2007, as has been, and still is, the general case, policy will continue to limit a non-Bermudian spouse to one property and may set conditions on the disposal of the property."