With its stable economy, high standard of living and beautiful environment, Cayman is an ideal place to own property.
The Cayman Islands impose no direct taxes – no annual property, inheritance, gift, income, corporation, capital gains, value added, sales or income taxes whatsoever. The only duty real estate buyers are required to pay is a one time “stamp” duty (currently 7.5% of the purchase price) within 45 days of closing for transfer of Title.
All land in the Cayman Islands is recorded in a single registry. The land registry is maintained by the government which guarantees Title, so title insurance is not necessary. The registry is open to the public through the Lands and Survey Department, and potential purchasers may inspect any property to ascertain ownership history and the record of liens.
The natural beauty of Cayman combined with a stable government, affluent population and sophisticated infrastructure has contributed to one of the region’s strongest real estate markets. Grand Cayman has provided long-term sustainable growth since its first tourism orientated developments in the 60s and the 70s.
Property demand in Cayman is on the rise. Real estate transactions increased by 45% in the first half of 2014 from a year earlier, based on figures released by CIREBA, the largest property portal in Cayman Islands. Likewise, the total value of real estate sales also rose.
Grand Cayman boasts many fine law firms to deal with property transactions as well as establishing Cayman trusts and corporations. Legal fees are based on a percentage of the purchase price or may be negotiated at a flat rate. Your sales representative can provide references for reputable firms that are experienced in dealing with high-end property.
The Cayman Islands is the fifth largest financial center in the world. It is well known for its abundance of banks, and is a major center for hedge funds, mutual funds and captive insurance. In the past decade the Cayman Islands has diligently worked to enhance its reputation as a professional, well-regulated jurisdiction and has enacted anti-money laundering legislation. Property purchasers may still choose to keep their ownership private. Properties may be held in easily set up Cayman corporations or trusts, keeping beneficial ownership confidential. There is no restriction on foreign purchasers’ having a corporation or trust. The Confidential Relationships (Preservation) Law makes it a criminal offense to divulge information given in confidence to financial or legal professionals (except in the case of criminal activity).
Property owners, investors and their families have a variety of options available to them if they wish to consider Permanent Residence as an opportunity to extend their time on the island. There are four Residency options available, and purchasing real estate can be an asset if applying for residency, information for which can be made available.