Buying Property in the Cayman Islands

To possess a small piece of paradise in the Caribbean might seem like a dream for most real estate investors. However, lucrative opportunities for investment are hard to come by and might seem like hidden treasures, there's great potential for profit, as long as one knows where to look. As Mark Twain once said: 'Buy land… they don't make it any more'. Such a statement couldn't be truer. Although property can at times drop in value, it has constantly been proven that it also grows over the years. In emerging investment areas, the capital growth can even double that of your local area.

The Times newspaper has in many occasions reported that 50% of those featured in their 'Rich List' earned their money through property investment. This proves that this style of investment, if managed properly, can offer you the financial security you are looking for.

If you've always dreamed of having your own piece of paradise, Cayman Invest could be what you have been looking for. Whether you are considering making an idyllic island your home, are considering an investment property, or just want somewhere nice to go on holidays during the summer months, the Cayman's are an ideal location to consider.

But why do the Cayman Islands excel as an investment opportunity? Mostly due to the island's not having restrictions on foreign ownership, as well as it's stable government providing special Tax and Duty Waivers for property purchased on Cayman Brac and possessing a land registry.

Let's look at Cayman's major benefits more in depth:

Registration of Title

All of Cayman Island´s dealings in real estate are based on a registered land system. All land is identified and numbered and a public records sheet relating to it is kept at the Land Registry. Land titles are guaranteed by the government, a title insurance is unnecessary and real estate transactions can be carried out quickly and efficiently.

Mortgages (Charges)

Mortgages in the Caymans are called 'Charges' and these are registered in the same manner as other real estate interests. Titles become free and clear upon payment of all sums due under the mortgage. All types of real estate, including condominiums, may be mortgaged as a security for a loan.

Loans

Non-Caymanians can easily obtain loans in the Cayman Islands.  A payment of 10% of the value of the property is required as a down payment.  Interest rates vary so ask us for the latest rates.  It is very difficult to get a loan in another country to purchase property in the Cayman Islands since this would leave the bank no recourse in the event of default.

Taxes & Duties

The Caymans do not have income, sales, property, capital gains, death, estate, inheritance or corporate taxes.  Upon purchasing property on the islands, a one-time payment of 7.5% of the value of the property is assessed. This one time Stamp Duty fee has been reduced to between 4% and 6% until further notice.  A 1% Stamp Duty is assessed against the mortgage amount.  Import duties are applied to most incoming items. This duty is typically 20% of the value including transportation and shipping charges.

Tax & Duty Waivers for Purchased Property

Cayman Brac currently has a moratorium on duty assessed against all construction materials.  Duty free concession is also still on in Cayman Brac where if raw land is purchased, and a commitment is made to build within 2 years, the 4% to 6% Stamp Duty is waived and all building supplies and materials are duty free.

Rental Income

Many people purchase homes and offset the cost of the mortgage with the funds retained from renting.  The home can be let on a short or long tern basis.  Contracting with the rental management office to put the home in the rental pool takes care of all the hassles associated with renting and taps into the aggressive marketing programs directed at home rentals.

Find out more about our current projects here.