Cayman Stamp Duty Savings.
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.
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%.
Stamp Duty saving are currently only for First time Caymanian buyers. (although some developers of homes may offer these savings as part of their sales package)
1. How First time Caymanian Buyers can save on Stamp Duty?
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. Current Market Value/Purchase price $400,000 or less for land with a building. NO STAMP DUTY
B. Current Market Value/Purchase price $150,000 or less Land only. NO STAMP DUTY.
C. Current Market Value/Purchase price not exceeding $500,000 land with a building, only if there are two or not more than ten first time Caymanian property buyers.
D. Current Market Value/Purchase price not exceeding $300,000 land only, only if there are two or not more than ten first time Caymanian property buyers.
Stamp Duty rates can increase to 2% above the quota’s allowable above. For a better understanding of the criterias for 2% Stamp Duty rate contact us here
***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.