HAMILTON, Bermuda (AP) – The developers of a multimillion-dollar home have taken the government to court over a new policy that prohibits Bermudians from selling their properties to foreigners.

Alan Marshall, and his wife, Vera Rosa, built a US$45 million (euro37.5 million) ten-bedroom home in the British territory’s exclusive Tuckers Town neighbourhood, known as “Billionaire’s Row”.

The couple’s lawyer, Saul Froomkin, argued before the Bermuda Supreme Court that the policy has made it impossible for them to sell the property, saying “no Bermudian on earth” could afford it.

The policy, enacted in February 2005, was intended to protect the supply of local housing on the 20.6 square mile (53.4 square kilometre) island. Before the change, Bermudians could sell their homes on the international market as long as the price was above a rate set by the government.

Today, only non-Bermudians can sell property to foreigners.

The policy change went into effect after the couple had finished construction. The government had led the couple to believe they would be able to sell the home to a non-Bermudian, Froomkin said.

Froomkin said it was a case of discrimination, favouring foreigners over Bermudians – which Solicitor General Wilhelm Bourne denied.

“The policy is not there to put Bermudians at a disadvantage but to preserve land for Bermudians,” Bourne said.

The British territory has one of the highest per capita incomes in the world, with an economy mostly based on offering luxury tourism and financial services for international companies.

The average cost of a house had risen to US$976,000 (euro819,000) in June 2003, according to the CIA’s World Factbook published online.

The island, known for its pink sand beaches, has drawn some of the rich and famous: Italian Premier Silvio Berlusconi, acting couple Catherine Zeta-Jones and Michael Douglas, and two-time presidential candidate and Texas billionaire H Ross Perot have homes there.