Bermuda was discovered in 1505 by Spanish explorer Juan de Bermudez.^[6] It is mentioned in Legatio Babylonica, published in 1511 by historian Pedro Mártir de Anglería, and was also included on Spanish charts of that year. Both Spanish and Portuguese ships used the islands as a replenishment spot for fresh meat and water, but legends of spirits and devils, now thought to have stemmed only from the callings of raucous birds (most likely the Bermuda Petrel, orCahow), also the loud noise heard at night from wild hogs and of perpetual, storm-wracked conditions (most early visitors arrived under such conditions) and a surrounding ring of treacherous reefs, kept them from attempting any permanent settlement on the Isle of Devils

For the next century, the island is believed to have been visited frequently but not permanently settled. The first two English colonies in Virginia had failed, and a more determined effort was initiated by King James I of England (James VI of Scotland), who granted a Royal Charter to the Virginia Company. In 1609, aflotilla of ships left England under the Company's Admiral, Sir George Somers, and the new Governor of Jamestown, Sir Thomas Gates, to relieve the colony ofJamestown, settled two years before. Somers had previous experience sailing with both Sir Francis Drake and Sir Walter Raleigh. The flotilla was broken up by a storm, and the flagship, the Sea Venture, was wrecked off Bermuda (as depicted on the territory's coat of arms), leaving the survivors in possession of a new territory. (William Shakespeare's play The Tempest is thought to have been inspired by William Strachey's account of this shipwreck.) ^[7] The island was claimed for the English Crown, and the charter of the Virginia Company was extended to include it. St George's was settled in 1612 and made Bermuda's first capital. It is the oldest continually inhabited English town in the New World.^[3]

In 1615, the colony was passed to a new company, the Somers Isles Company (The Somers Isles remains an official name for the colony, named after Admiral Somers, just as Gate's Bay and Fort Gates are named after Sir Thomas Gates), formed by the same shareholders. The close ties with Virginia were commemorated even after Bermuda's separation by reference to the archipelago in many Virginian place names, such as Bermuda City, and Bermuda Hundred. The first British coins in America were struck here.

Most of the survivors of the Sea Venture had carried on to Jamestown in 1610 aboard two Bermuda-built ships. Among them was John Rolfe, who left a wife and child buried in Bermuda, but in Jamestown, married Pocahontas, a daughter of Powhatan. Intentional settlement of Bermuda began with the arrival of the Plough, in 1612.