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Purchase a Property in Cayman Islands

Purchase a Property in Cayman Islands

Foreigners can buy a house in Grand Cayman without restrictions. Buying real estate in this location is simple and straightforward, helped by the fact that English is an official language and that there are no property taxes. However, despite the simplicity, investors who wish to purchase a property in the Cayman Islands will need to be prepared for the local regulations.

Main reasons to buy property in the Cayman Islands

to buy a property in this location are listed below by our Cayman Islands incorporation agents:

  1. Tax neutrality: there are no taxes payable on income, there are no inheritance taxes or capital gains taxes.
  2. Accessibility: proximity to the United States is an advantage for many investors; with a direct flight, Miami is just one hour away.
  3. Infrastructure: the international airport has been expanded and it can easily accommodate the millions of tourists coming to the islands each year.
  4. Friendliness: the islands are known to be welcoming, safe and friendly. New property owners and residents are welcomed. We recommend buying a house in Grand Cayman since it is the most populous island.
  5. Stability: the Cayman Islands enjoy the status of being a British Overseas Territory. 

How to purchase property in the Cayman Islands 

Purchasing a property is an important decision and investors should consider the following aspects:

  • the budget: the Cayman Islands has a varied offer in terms of real estate that also includes luxury properties. Establishing the budget is an important phase in order to determine the types of properties that are targeted.
  • the location: another important decision that is linked to the property prices, as some areas are more coveted than others. We can help you buy a house in Grand Cayman, the largest island of the Territory.
  • work with an agent: this step is optional, however, a real estate agent can help you find the property you are looking for much faster; he will also be able to explain the process.
  • due diligence: inspecting the property and making a documented choice before signing the property transfer documents falls onto the buyer; A minimum real estate due diligence is recommended.

The following documents should be verified during the due diligence:

  • specific inquiries with the seller about the condition of the property,
  • the title documents (the land registration for the parcel or the house),
  • leases verification and review.

The property sale/purchase agreement can be a standard one. Buyers are required to present personal identification documents when entering into the agreement.

We assist through the entire process of buying a house in Grand Cayman.

Taxes and financing for buying a property in the Cayman Islands

The stamp duty is the only notable type of tax applicable to property purchases in the Cayman Islands. Currently, the stamp duty is 7,5% on the purchase price of the property, but it is deducted from the value of any used furniture included in the sale.

Additionally, when buying a property in the Cayman Islands, one must also pay the strata fees, which apply specifically to condominium properties. Strata fees are determined based on the size of your condominium. These fees are collected to cover the shared expenses related to the building and its common areas (insurance, maintenance, landscaping, pool maintenance, etc.).

Lastly, if you buy a house in Grand Cayman, you must also be acquainted with the real estate agency fees. The buyer is not responsible for paying these taxes, but the seller. The commission rates follow the Cayman Islands Real Estate Brokers Association (CIREBA) guidelines.

One of our agents who specialize in Cayman Islands incorporation can also provide more information about the local tax laws.

Several banks provide financing options for buying a property in the Cayman Islands. Generally, for a primary residence, you will need to provide a deposit ranging from 10% to 35%. However, non-residents might face higher deposit requirements and potentially higher interest rates due to the perceived higher risk.

Due diligence before the buying process

Real estate due diligence in the Cayman Islands is a common practice and it represents an investigation of the property, prior to signing the final purchase documents. The buyer is advised to perform this step in order to ensure that the property has its proper title documents. It can also help him/her to have a clear image of the property’s current state as well as determine if any leases are taken on the property. 

The due diligence checklist will depend on the type of property that is being purchased as well as its use. In some cases, investors may wish to work with a professional who specializes in offering these particular types of services.

Owning residential or commercial real estate in the Cayman Islands is simple for foreign investors who are also enjoying the ability to own land.

We can help you in the process of buying a house in Grand Cayman which includes due diligence.

The real estate due diligence checklist in the Cayman Islands

Some of the most common items that are verified during due diligence include the following

  1. Title: the copy of the land register map extract for the property in question;
  2. Lease matters: information on whether or not there are any leases on the property and, if so, what are their terms are.
  3. Financial information: can include utility bills, expenses, bills for past improvements to the property.
  4. Litigation: whether or not the property in question is subject to any open claims.
  5. Physical inspection: an assessment of the physical situation compared to the built plans, the current status of the property. 

Please remember that this checklist is not an exhaustive one and some buildings may be subject to more thorough inspections. This includes obtaining information about engineering or environmental reports (for commercial property, when applicable). We recommend conducting diligence, especially when buying a house in Grand Cayman.

The Cayman Land Info portal operates under the Lands and Survey Department and offers a set of useful features to users. Access to services such as cadastral information or land registry and terrain or planning information is subject to an annual yearly fee. 

Real estate investors can use the available online tools as well as work with a professional who offers complete real estate due diligence services in the Cayman Islands.

Those who are interested in setting up a Cayman Islands company and then in purchasing property can reach out to one of our agents. 

Buying a property and receiving residency

Those looking to immigrate to the Cayman Islands and receive residency can do so by investing in real estate. There are multiple options for investors:

  • Buy a property in the Cayman Islands worth a minimum of USD 2.4 million. This grants residency for a lifetime in the jurisdiction. Both you and your spouse can live and work under this option;
  • Invest a minimum of 1.2 million dollars in the economic activities of the Cayman Islands, including at least 50% in developed residential real estate. Please note that setting up a Cayman Islands exempted company does not qualify as an investment. The residency certificate is valid for 25 years and can be renewed. It is also available for your spouse and dependents. Please note this option does not allow you to work in the Territory.

If you do not wish to buy a property in the Cayman Island to obtain residency, there are other options that do not require real estate investments. These investment categories mainly refer to setting up a company in the Cayman Islands.

Our immigration lawyers in the Cayman Islands can offer more details about the investment options and their requirements.

Statistics about the real estate market in the Cayman Islands

The jurisdiction is favorable for buying a property, as highlighted by these 2022 statistics:

  • A total of 936 properties were sold, with the total sales amounting to approximately 1.03 billion dollars;
  • 1,441 new properties were introduced to the market;
  • The average time on the real estate market for residential properties is 494 days.

Foreigners who are also interested in company formation in the Cayman Islands are recommended to seek assistance from our specialists. We provide complete services to investors who wish to open a company and can assist with further services in the post-incorporation phase, among which assistance for purchasing a property when the owner is a legal entity. Apart from assisting in the Cayman Islands company formation, we can also help with conducting real estate due diligence.

Investors who are interested in purchasing land via a legal entity incorporated in this jurisdiction should know that the Cayman Islands exempted company may now own land without prior special approvals. One of our agents can provide more details on this matter. 

If you would like to purchase a property as part of the process to set up a Cayman Islands company, our team can also assist throughout the company formation stages. We are a team of experts specializing in incorporation matters and can assist local and foreign investors looking to open an onshore or an offshore company.

Contact our Cayman Islands company formation agents for more information about our services.