Stamp Duty and Stamp Duty Savings what exactly are they?
In simple terms Stamp Duty is a one off government fee when you purchase real estate in the Cayman islands including land, homes, building etc. The Stamp Duty rate on all 3 islands for real estate purchases is 7.5% and this is charged/payable upon the closing of a property by the Lands & Survey Department of the Cayman Islands. Other than this there are no yearly property taxes in Cayman.
It’s important to remember especially when calculating your Stamp Duty cost that Stamp Duty is calculated on the purchase or valuation of the property, which ever is higher. So this cost should be given some freedom when trying to calculate the over all costs of purchasing your Cayman property. Check out our Stamp Duty Calculator
Stamp Duty cost can be reduced if indeed inventory/furniture is been sold with the property. This is done by estimating the value of the inventory, subtracting this value from the purchase price and then calculating Stamp Duty at 7.5%. Contact us for more clarification.
Remember Stamp Duty is paid in Cayman Islands Dollars. So when buying a property in United States Dollars extra caution should be taken to estimate this overall Stamp Duty cost because of the conversion from US$ to CI$ when going to pay your Stamp Duty which can be make a difference on high value sales.
Stamp Duty Savings
Certain developers in Cayman have been given the ability to build brand new homes with an allowance for Stamp Duty savings for buyers. This opportunity to save on Stamp Duty savings will end on December 31st 2019. This is a great opportunity for home buyers whether caymanians, private investors or work permit holders to have huge savings when buying a Cayman property. Some of these savings can range from CI$25,000 up to over CI$50,000 for Grand Palmyra for example. How it works is a buyer would have two contracts to purchase a property. One contract would be for the land value only and on this value you would only pay Stamp Duty before December 31st 2019. Usually only a few thousand dollars. The second contract is for the building of the structure/home and no Stamp Duty is paid on this. Huge saving. Construction of these brand new homes can take any were from 10-16months to build. It is well the savings and in some instances you have the abilty to assign your contract if indeed you may decide to sell before construction finishes. Contact us to walk this through with you.
Overall Stamp Duty savings are a huge advantage for buyers right now. Don’t forget this opportunity ends on December 31st 2019. We recommend two developments to take advantage of these savings Grand Palmyra and Casa Bella.
For a full list of Developments island wide that are offering Stamp Duty Savings till December 31st 2019 please contact us
When these Stamp Duty savings end all property purchases will revert back to the Stamp Duty cost associated with buying a property. If you are a first time caymanian buyer here is a breakdown of the savings you can gain just released by the Cayman Islands government Cayman Stamp Duty Savings