Buying Cayman Property
Here are some helpful tips into buying property in the
Cayman Islands. If you any questions just contact
Registration Of Title
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 Registry. 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 these 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, including condominiums, 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 a down payment. Interest rates vary
so ask your real estate agent 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 lending bank no recourse in the event
of a default.
Property and hurricane insurance is readily available
at a reasonable price. We suggest using Brac
Insurance Associates Ltd. but other insurers are available.
TAXES AND DUTY
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% of the value of the
property is assessed. The assessment is less the value of any furnishings within the property. A 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. Cayman Brac currently has a moratorium on duty normally
assessed for construction materials
Many people purchase homes or condominiums and offset
the cost of the mortgage with the funds
retained from renting. The condominium can be let on a short
or long-term basis. Contracting with the
condominium management company to put the suite in the rental
pool takes care of all the hassles
associated with renting and taps into the aggressive marketing
programs directed at condo rentals.
Contact us for more info