by Gabriella Agostinelli 
Grand Cayman, a tropical Caribbean island, is known as a paradise to all but home to just a lucky few. Island living promises sand & sunshine 365 days a year and an exceptional quality of life that can be hard to find in the hustle and bustle of today’s modern world. In addition to the beauty Grand Cayman has to offer it also is a world class financial center with modern infrastructures, low crime rates, and excellent schools that will make you and your family feel right at home. While buying property in a foreign country may be daunting when you are unfamiliar with the market it doesn’t have to be. Buying a property on island is very straight forward and with the right agent for you the process will be seamless. With that, your team at Momentum Realty has put together a list of five essentials to consider when purchasing your home in paradise!
1. No Property Tax
What may come as a surprise to many international buyers, is that Grand Cayman does not have any taxation. Yes you did read that right there is no tax when living on this beautiful island. So this means as a resident you are not responsible for any annual property tax, income tax, inheritance tax, or federal/state tax.
2. Stamp Duty
Although Grand Cayman does not have any property tax, however when purchasing a property on island there is a onetime “stamp duty”. To put it simply stamp duty is 7.5% of the property’s market value or purchase price (whichever is higher), which is paid to the government within 45 days of the completion of the sale. While this may sound like a lot to pay in addition to the purchase price of your home, let’s think about it. This stamp duty is a fee that you will only pay once in the entirety of owning your home for years to come, as opposed to annual taxes that come around like clockwork each year.
3. Pre-Approval from a Local Bank
When purchasing a home in Grand Cayman the first step is procuring pre-approval by a local bank for a mortgage. This step is important because you need to know how much money you are able to borrow, which in turn will help you narrow down the property search. It enables you to put parameters on your purchase price, cutting down on search time helping you find your dream home sooner. Having this pre-approval will also show your agent that you are a serious buyer, as well as reassure sellers that you are a qualified buyer for their home.
4. Furnished vs. Non Furnished
When purchasing a home in Grand Cayman you will find more often than not that properties will come furnished. While this may seem unusual to many international buyers, there are many pros to buying a furnished property versus an unfurnished property on an island. The first being convenience; purchasing furniture on an island can be difficult and the selection is minimal and often times the prices are high. Alternatively, if you choose to purchase furniture overseas for your new home and have it shipped to the island that can be become logistically difficult as well as costly. In favor of purchasing a furnished home, particularly if you are looking to rent your property out as a vacation or long term rental, upon purchasing you will immediately be able to begin renting out your property and earning back on your investment without having to lose precious time on purchasing furniture and decorating.
5. First Time Caymanian Buyers
When purchasing a home or raw land as a first time Caymanian buyer there is one large perk to take into consideration; the government has recently significantly expanded access to stamp duty waivers. There is now no stamp duty on properties valued up to CI 550,000 or raw land valued up to CI 250,000! There is also a reduced stamp duty of 3.75% on the excess over CI 550,000 for properties valued at up to CI 650,000 and on the excess over CI 250,000 for raw land valued at up to CI 350,000. This is a huge incentive to purchase a home (or raw land to build upon) as opposed to renting for first time buyers as it allows them to invest into their future. Additionally the government has also recently approved a new benefit for Caymanians looking to purchase their second property. While they will have to pay stamp duty when purchasing their second property, this allowance will put the stamp duty at 3.75% on property valued up to CI 600,000 or raw land valued up to CI 300,000, a considerably lower rate than the average rate of 7.5% on the purchase price or the market value of the property, whichever is higher. There are also additional stamp duty waivers for 2-10 first or second time buyers seeking to combine their stamp duty exemptions. The future of Grand Cayman is bright, and its real estate market is even brighter.Boasting an incomparable quality of life filled with sunshine and tropical breezes, it’s not too hard of a sell to just buy that plane ticket to paradise and never look back.The real estate market on island is seeing rapid growth and an influx of development, which to our eyes doesn’t seem to be slowing down anytime soon. And now that you have the five essentials to buying in Grand Cayman what are you waiting for? We’re just a phone call away, let our team at Momentum Realty help you unlock your paradise!
This article is for informational purposes only and should not be construed as legal advice.
