Purchasing property in the Cayman Islands is an alluring venture not only because of the country’s Caribbean charm, but because the purchase process is acclaimed for its structured and straightforward practices.
The Cayman Islands real estate market appeals to foreign buyers due to its tax neutral status, no restrictions on foreign ownership, guaranteed property title and of course, purchasers are spoiled for choice with a variety of properties from the famous Seven Mile Beach to the tranquil neighbourhoods of South Sound and the eastern districts.
The total number of active property listings, according to the Cayman Islands Real Estate Brokers Association (CIREBA), was 1,592 in 2016 and had a value in the range of CI$1.3 billion. A total of 724 properties sold in 2016, representing approximately CI$435 million in sales. CIREBA reports that due to a limited supply in the prime Seven Mile Beach area, demand is growing for canal-front properties that provide views and water access, and availability of inventory may soon become a bigger issue than price.
The real estate experts at Provenance Properties can introduce you to a wide range of luxury properties and help explain the process of buying Grand Cayman real estate.
Here is why buying property in the Cayman Islands is a relatively simple process:
There are no income, property, corporate, capital gains or inheritance taxes in the Cayman Islands. A one-time stamp duty (land transfer fee) is applicable on real estate sales and is currently 7.5% on the purchase price or value of the property (whichever is higher), made payable to the Cayman Islands Government. First-time Caymanian buyers receive a special exemption of this fee if they make a land purchase of no more than CI$100,000 or on property under CI$300,000 – any purchase made above this amount is eligible to receive a reduced rate of 2%.
Ease of Access
The Cayman Islands are one of the closest Caribbean destinations to the United States. Direct flights from Miami are just over one hour in length, and flights from New York City are only three and a half hours. The Owen Roberts International Airport is currently under a multi-million dollar renovation and on track for completion in 2018. Once completed, it will have capacity to welcome two million visitors annually, making it one of the most advanced airports in the Caribbean.
Those who prefer to travel via private jet charter to the Cayman Islands can be greeted by Island Air’s exclusive Meet and Greet service. As the islands’ only Fixed Base Operator, Island Air has served the aviation community in the Cayman Islands since 1987, providing cost-effective and hassle-free aviation services for private and chartered aircrafts.
Cayman Islands Residency
The Cayman Islands offers an enviable lifestyle with a superlative selection of fine dining venues, world-class cultural and sporting events, a vibrant fine and performing arts scene and renowned beach and marine experiences – all within easy access on 22-mile long Grand Cayman, the largest of the three islands. The sister islands of Cayman Brac and Little Cayman provide a laidback, quiet Caribbean island experience that appeals to world-weary travellers and to those seeking a quiet respite from a hectic lifestyle.
The Cayman Islands is a British Overseas Territory. As a result,the jurisdiction enjoys a high degree of political, economic and social stability, with an elected government of a Cabinet and Legislative Assembly, together with a Governor appointed by Her Majesty Queen Elizabeth II.
Modern infrastructure makes living in and visiting the Cayman Islands easy and convenient. There are three hospitals, 10 private schools including an international school with an International Baccalaureate programme, well-appointed and modern grocery stores, a developed road network and a variety of retail and professional services. Communication services are modern and readily available, making contact and business overseas a straightforward process.
The Cayman Islands’ Land Registry is a modern system, which makes the process simple and safe, and provides peace of mind to purchasers. Land ownership is registered with the Cayman Islands Government, which means there is no need for title insurance.
Friendly and Safe
The Cayman Islands is rated as one of the friendliest countries in the world, most notably by Forbes Magazine. In fact, the Cayman Islands is so committed to how they treat others, the Government established the term “Caymankind”. Caymankind denotes the experience of Caymanian culture and that new residents are highly likely to receive a warm welcome from locals and international residents alike. Safety is topnotch thanks to a well-equipped police force, the Royal Cayman Islands Police Service; crime levels are among the lowest in the Caribbean.
Financing and Legal Framework
Buyers are encouraged to appoint an attorney to prepare the necessary legal documentation for closing and it is estimated to cost between 0.5% to 1% of the purchase price.
Real estate agent fees are present, but are paid only by the vendor – offering buyers another cost-saving benefit. Vendors can expect to pay commission rates using a common guide set by CIREBA. For example, properties ranging from US$95,000 to $494,999 will adhere to 7% while higher value properties ranging from US$995,000 to US$9,994,999 adhere to 5%. Click here for a full list of commission rates.
If you seek a mortgage and choose to finance with a Cayman Islands bank, a valuation report is required and this cost is dependent on the size and value of the property, starting from approximately CI$400. The mortgage approval process usually takes four to six weeks from the time of application.
With an abundance of legal and financial professionals on island, buyers can find comfort with expert care and advice when they have chosen a Cayman home that best suits their requirements.
Finding the Right Residence
City-dwellers who crave the conveniences of eateries, shopping and entertainment within walking distance will be drawn to The Terraces at Camana Bay, a luxury waterfront residential community with the amenities of an urban lifestyle; restaurants, shopping, wineries, cafés, gyms, a spa and health facilities are all located in the town. Boaters and families wanting the freedom to design a home that suits their personal tastes, however; may find the canal-front lots at North Creek to be more aligned with their needs. And with residences ranging from cosy, functional studios to stately five-bedroom penthouse suites at The Residences at Seafire, there’s a floorplan to suit any prospective home owner.