Related Legal and Financial Information in the Cayman Islands
Can I foreigner buy real estate in the Cayman Islands? Yes, foreign ownership of property is encouraged. People or companies can purchase up to 3 residential properties. Any more than that, you have to hire a property manager who has a Trade & Business license or you can apply for your own.
Will I need to buy title insurance when buying property in the Cayman Islands? No we do not have title companies here, because the Cayman Islands government has a very sophisticated land register system and the government guarantees title.
Is there a tax office or somewhere the land is registered in the Cayman Islands? Yes, every property is registered under a unique block and parcel number. A potential purchaser can review records to learn if there are any liens or restrictions on the property prior to buying real estate for sale in Cayman Islands.
Is there a land transfer tax due on the sale of any real estate in the Cayman Islands? One of our few taxes is called a stamp duty of 7.5% and is charged by the government on all property sold in Cayman Islands calculated on the purchase price or the market value, whichever is the higher amount. The buyer pays this tax. Chattels and furnishings are not considered part of the value of the property.
What other costs are there normally associated with buying real estate in the Cayman Islands? Purchasers pay their own legal fees, which are usually equal to .5% of the value of the property and this fee can be negotiated with your attorney. Also the government charges a stamp tax to any mortgages of 1% up to CI$300,000 and then 1.5% over CI$300,001.
How the property is transferred form the Vendor to the buyer? The process is called conveyancing and we strongly encourage you to hire a local attorney to do this as they do the checks on title to ensure you are buying what you think you are buying. The process can take as little as 3 days or longer. We recommend a few very good attorneys who are knowledge, friendly and efficient and most of all will answer your phone calls, texts and emails!
1) Norm Klein and Don Miller at Appleby
2) Derek Jones of HSM
3) Gina Berry of Higgs and Johnson