Buying property in the Cayman Islands
Buying a property in the Cayman Islands is an interesting and rewarding goal not only because of the country’s well-known unspoiled beaches, but because the purchasing process is highly structured and simplistic. Available to residents of any country, and offering the ability to receive extended periods to stay as an owner, this paradise is about as open to foreigners as you will find.
Most sales are concentrated in Grand Cayman which attracts foreign buyers because of its simplicity on tax status, unrestricted when it comes to eligibility of homeownership, guaranteed property title, and local financial lending institutions to provide home loans.
Foreign buyers like the Cayman Islands as a market because it also offers a number of benefits such as:
- High demand for short term holiday rentals
- Managed ownership schemes / Timeshares
- Low seasonality - other than some of the hurricane season (August - October), occupancy is generally pretty high all year round
- Reasonable prices (but increasing)
- Low/No tax environment (no capital gains, no income tax).
So if you’re planning to retire or holiday regularly in the Cayman Islands and on the hunt for a luxury property on sale in Grand Cayman, read on to get an understanding of how it all works.
The Cayman Islands Tax system is very simple because there is no income tax, property tax, corporate tax, capital gains tax, or inheritance tax. That is why the structure is a big plus to foreign buyers. The only taxes worthy of consideration are that on items brought into the country (imports) such as furnishings, food, and most other items.
The Cayman Islands History and Culture
The Cayman Islands has a rich history and a vibrant culture that is continuously evolving. The legal system is based on English common law.
Access to Travel
According to the Cayman Islands Government website, Airlines from Cayman, the USA, UK, Jamaica, and Canada provide scheduled passenger service. There are several airlines that serve the Islands, including the national airline Cayman Airways, American Airlines, United, Delta, JetBlue, Air Canada, WestJet, SouthWest, British Airways, and Air Jamaica. Flights operate between Grand Cayman and cities in Canada, Cuba, Honduras, Jamaica, UK and the US.
Most carriers worldwide have connecting flights. The frequency of flights may vary seasonally, so contact your travel agent for details.
Property Title/ Local company
In the modern system of Cayman Islands’ Land Registry, it makes the process easy and safe, which provides peace of mind to all the buyers. Acquiring land ownership is registered with the Cayman Islands Government which will not require title insurance.
In many cases forming a local company can be wise for asset protection. For example, a Partbnb shared ownership offer, we’ll form a local company in which each of the owners holds a relevant interest. The company will be the titled owner of the property. We’re connected only via a management agreement.
Property Acquisition Costs to Consider
Stamp Duty / Transfer Tax
Each country has slight variations on the amount that they charge for real estate transactions. You can see the typical rates below.
In the Cayman Islands, you pay a 7.5% stamp duty in Grand Cayman for the purchase of any property, and 0% if you are selling the property. This stamp duty does not include the chattels, and in most cases properties are provided with all furnishings included in the price.
Company Creation Fees
The formation of a local company for property acquisition in Cayman may be advisable. The usual cost for setting up a local company is $3k - $5k, and can be arranged by a local attorney firm.
Is it Friendly and Safe?
The Caymans Islands are full of fun, friendly local Caymanian residents, and a large number of seasonal visitors who either are on a short or long term holiday. The islands boast one of the lowest crime rates in the Caribbean, good schools, excellent health care system, and have an active foreign community that initiates with the locals. The Islands have a modern legal and judicial system, consistently upgrading to enhance their safety and reputation as a leading financial center.
Can I buy property in the Cayman Islands?
Yes! Unrestricted, open to all. There are no qualifying requirements such as income / net worth checks! It is open to residents of any country. It has no tax, supported by a stable government. The weather is lovely, has a world-class healthcare system and the educational system. The place is Caymankind and safe. Many estate agents in cayman islands will help you find affordable Caribbean vacation homes.
If you are interested in finding out more about how you can own a stunning vacation home in the Cayman Islands, check out the Partbnb site and explore the possibility of home in the Cayman Islands, check out the Partbnb site and explore the possibility of owning a part share.
Here’s how Partbnb makes it easy and affordable for you to buy your dream Caribbean vacation home.
- Firstly, our expert property team (who love the Caribbean) will search for the most appropriate properties. When we find a gem, we list it on the "upcoming" section of our properties page. If we are able to secure this property, we will move it to the available page, and now is your chance to reserve your part of this property.
- We walk you through the buying process, and within a few months, you (and 7 others) are the titled owners of the home, with a detailed shared ownership agreement. Our Partbnb team will manage all aspects of the property, overseas the shared ownership, and handle the short term rental part to provide income.
- As an owner, you get 45 days’ use of the property (via a booking calendar). If you choose not to stay, we will rent it out short term, so you can use the income to offset any expenses.
- This truly is a way for you to properly own a standalone home with a fraction of the upfront costs, low (or no ongoing expenses), and benefit from increases in value as the titled owner.
Read the full details about how it works by clicking here
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