Cayman Stamp Duty Savings.
What is Cayman Stamp Duty? Cayman Stamp Duty is a set rate of 7.5% on all three Cayman Islands on the purchase price or the market value of the property, whichever is higher. This includes all property purchases such as land, condos, homes etc. Stamp duty is calculated in Cayman Islands currency.
There are currently two ways to save on Stamp Duty in Cayman;
1. How Caymanians, Work permit holders, residents, investors etc can save?
This bracket of purchasers of Cayman property have until the end of DECEMBER 2019 to save on Stamp Duty when they purchase a property in Cayman in any area of Grand Cayman. Only certain new developments have acquired permission to offer these Stamp Duty savings. Contact us here for more info on who they are.
This allows developers to sell developments/homes whereby the buyer, a Caymanian or local resident (expat/work permit holder/resident) would have the opportunity to purchase their new home with two purchase agreements. One for the value of the land and the other for the value of the home. The buyer would in fact only pay the Stamp Duty on the first purchase agreement (land). This offers tremendous savings in Stamp Duty. So any buyers looking to purchase such opportunities should move quickly as savings can be as much as $50,000.00 or more in some cases such as the new Palmyra Residences.
1. How Caymanians can save on Stamp Duty?
Other than the above scenario/s, savings on Stamp Duty for Caymanians buying their first home or land to build was increased by the Cayman Islands government. First Time Caymanian buyers now have a valuable opportunity to join the property ladder. Government said the increase was designed to help first-time Caymanian property buyers and low-income members of the public.
These Stamp Duty savings will also be available to two or more Caymanians, but not more than ten, that are buying property collectively for the first time. If the value of the property with a building on it does not exceed $500,000, then there is no stamp duty to pay. If the couple or group is buying raw land with a value under $300,000, then there is again no stamp duty to pay. The bill also specifies a 2% rate of stamp duty for acquisitions with built-up property that do not exceed $600,000 and $350,000 for raw land.
Below are the current concessions that First Time Caymanian Buyers can take advantage of as of today. If you have any further questions on these please feel free to contact us here.
1. The new Law/Bill came into effect 1st January 2019
2. Includes Caymanians purchasing property for first time as joint proprietors or as proprietors in common.
A. Buy $400,000 or less for land with a building. NO STAMP DUTY
B. Buy $150,000 or less Land only. NO STAMP DUTY.
C. Buy $400,000 not exceeding $500,000 land with a building. 2% STAMP DUTY.
D. Buy $150,000 not exceeding $200,000 land only. 2% STAMP DUTY
Incredible opportunity for Caymanians to join the property ladder & save $$$$ today!
***IMPORTANT NOTE – All Stamp Duty is paid in Cayman Islands Dollars currency. So it’s in buyers interests who are purchasing cayman properties in United States Dollars to calculate the correct Stamp Duty rate so there are no surprises when you are closing on your property purchase.
If you are looking for more opportunities such as these contact us here for further information.