Purchase Details

Buying Property in the Caymans

All dealings in real estate in the Cayman Islands 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 Register. Land titles in this system are thus guaranteed by the government, title insurance is unnecessary and real estate transactions can be carried out quickly and efficiently.

Mortgages in the Cayman Islands are called Charges and are registered in the same manner as other real estate interests. Title becomes free and clear upon payment of all sums due under the mortgage. All types of real estate may be mortgaged as security for a loan. Non-Caymanians can easily obtain loans in the Cayman Islands. A payment of 20-30% of the value of the property is required as the down payment.

The Cayman Islands do not have income, sales, property, capital gains, death, estate, inheritance or corporate taxes. There is, however, a tax on tourist accommodations and a departure tax for airline passengers. Upon purchasing a property on the islands, a one time payment of 5% on the value of the property is assessed. The assessment is less the value of any furnishings within the property. A one time 1% stamp duty is also 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.

Many people purchase villas or condominiums and offset the cost of the mortgage with the funds retained from renting. The villa can be let on a short or long term basis. Contracting with Crystal Azure’s Rental Management Program takes care of all the hassles associated with renting and taps into the aggressive marketing programs directed at villa rentals.