The Cayman Islands are known for the beautiful beaches, resorts and scuba diving and snorkeling sites. While the British Overseas Territory is also known for the beneficial conditions for Cayman Islands company formation, it is also a location when entrepreneurs may wish to purchase property for personal or commercial use.
Buying real estate in this location is simple and straightforward, helped by the fact that English is an official language and the jurisdiction is a tax neutral one. However, despite the simplicity, investors who wish to purchase a property in the Cayman Islands will need to be prepared for the prices that are common for this location.
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A tropical climate, beautiful islands and plenty of entertainment activities are three reasons why the Cayman Islands are attractive for tourists. And the same main reasons can also apply to those who wish to purchase a property in a unique island paradise.
However, natural beauty is not the only reason why individuals and entrepreneurs are purchasing property here. Some of the other reasons are listed below by our Cayman Islands incorporation agents:
The tax neutrality of the Islands also makes them attractive to international investors. Setting up a Cayman Islands company is also a simple process during which our experts in incorporation can offer the needed assistance, particularly to those foreign nationals who cannot be present in the location at all times.
Purchasing a property is an important decision and investors should first answer some important questions:
The following documents should be verified during the due diligence: the title documents (the land register for the parcel or the house), leases verification and review as well as specific inquiries with the seller about the condition of the property. The property sale/purchase agreement can be a standard one and buyers are required to present personal identification documents when entering into the agreement.
The stamp duty is the only notable type of tax applicable to property purchases in the Cayman Islands. one of our agents who specialize in Cayman Islands incorporation can also provide information about the local tax laws.
According to the Economics and Statistics Office, the following data applied at the end of 2018 for the population in the Cayman Islands:
The Cayman Islands is a tax-neutral jurisdiction that also has no restriction on the ownership of land or property. This, together with the simple property purchase transaction, are the main reasons why foreign nationals are choosing to invest in real estate.
Investors who are interested in more information about property purchase in this jurisdiction can reach out to our Cayman Islands incorporation 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.
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, 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.
Apart from being interested in Cayman Islands company formation, foreign investors are also attracted by the evolving and diverse real estate market. Many properties are selling quickly especially those that are located along Seven Mile Beach, the top location on the Island and also one of the areas with the most expensive housing.
Owning residential or commercial real estate in the Cayman Islands is simple for foreign investors who are also enjoying the ability to own land. Investments are convenient particularly because there are no property taxes and no restrictions on ownership. In addition to these favorable conditions, the British Overseas territory also offers beautiful beaches and scenery and it is an attractive holiday destination.
Some of the most common items that are verified during due diligence include the following
Please remember that this checklist is not an exhaustive one and some buildings may be subject to more thorough inspections, such as obtaining information about engineering reports or environmental reports (for commercial property, when applicable).
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 purchase property can reach out to one of our agents.
The Cayman Islands are attractive to investors who wish to set up a business that is subject to tax neutrality. This is why many entrepreneurs choose to open a Cayman Islands exempted company. however, the beautiful islands are also a top destination to invest in real estate because of the good weather, proximity to the United States, the mature and diverse real estate market and the fact that English is the official language.
According to an independent review of the property market in the Cayman Islands performed by Charterland, the situation was as follows:
The increase in the volume of property sales has contributed to an increase in the average property value.
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.
The Cayman Islands has a relatively small property market, however, it does contain a number of sub-markets that perform well. Some of these categories may include condominiums, houses, land and the commercial market.
When purchasing a property in any of the areas of interest, it is recommended to perform a real estate due diligence.
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. Get in touch with us for more information about our services.
Contact our Cayman Islands company formation agents for more information about our services.