Buying Property in the Cayman Islands as a Foreigner
Who can buy property in the Cayman Islands?
Foreigners are allowed to purchase property in the Cayman Islands, and the government actively encourages investment from international buyers. Unlike many other destinations, there are no restrictions on foreign ownership of real estate, nor are there any annual property taxes. Property can be acquired either in an individual's name or through a corporation, which may provide potential tax advantages.
Additionally, foreign investors can buy land without the obligation to develop it within a specific timeframe, a requirement often imposed on other Caribbean islands.
Do the research
Investing in Cayman Islands real estate is attractive due to the territory's strong economy, stable political environment, and its status as a global financial hub. The Cayman Islands offers a tax-neutral environment with no property, income, or capital gains taxes, which makes it particularly appealing for international investors. Its thriving tourism industry ensures consistent demand for vacation rentals, especially in prime areas like Seven Mile Beach, where properties retain high value and offer significant rental income potential.
The real estate market is well-regulated, with clear laws allowing foreign ownership of land and property, providing security and ease of transaction. The islands' exceptional quality of life, with world-class amenities, pristine beaches, and a safe environment, enhances the appeal for both residents and investors. Additionally, with ongoing infrastructure development and a strong focus on luxury and sustainability, the Cayman Islands presents opportunities for long-term value appreciation and diversification in a resilient and prestigious market.
Below are some sought-after destinations for real estate investment in the Cayman Islands:
- Seven Mile Beach - This iconic stretch of white sand is one of the most desirable areas for property investment in the Cayman Islands. Known for its luxurious condominiums and upscale resorts, Seven Mile Beach offers stunning ocean views, access to world-class amenities, and strong rental income potential. Its high demand makes it a prime spot for both vacation homes and long-term investments.
- George Town - As the capital and financial hub of the Cayman Islands, George Town is a top choice for commercial and residential real estate. The area features a mix of modern apartments, office spaces, and retail properties. Its proximity to the airport and vibrant city life makes it ideal for investors targeting business travelers and expatriates.
- Camana Bay - A meticulously planned community, Camana Bay combines residential, commercial, and recreational spaces. It offers townhomes, condos, and waterfront properties alongside restaurants, boutiques, and offices. With its family-friendly environment and growing popularity, this area appeals to both residents and investors.
- Rum Point and North Side - Known for its tranquility and scenic beauty, the North Side, including Rum Point, attracts buyers seeking a quieter lifestyle. The area features beachfront villas and charming homes perfect for vacation rentals or second homes, catering to those who prefer a relaxed atmosphere away from the busier tourist zones.
- East End - This area offers a more affordable entry into the Cayman property market, with a selection of homes and land for development. Its less-developed nature appeals to investors looking for long-term growth or those seeking eco-tourism opportunities.
- Little Cayman and Cayman Brac - For investors drawn to boutique properties or remote getaways, the smaller sister islands offer unique opportunities. Little Cayman and Cayman Brac are known for their natural beauty, diving attractions, and potential for eco-friendly developments.
Where to find properties online:
Financing
Foreign nationals can obtain mortgage loans in the Cayman Islands, although the process may differ slightly compared to local residents. Several local banks and international financial institutions operating in the Cayman Islands offer mortgage products to non-resident buyers. These loans typically have terms ranging from 15 to 30 years, but foreign buyers are often required to make larger down payments than local residents. A standard down payment for foreign buyers can range from 20% to 30%, depending on the lender and the buyer's financial profile. Mortgage interest rates in the Cayman Islands are competitive, but they can vary based on the loan type, property value, and the buyer's financial status​. Buyers should consult with mortgage advisors or financial experts to navigate these options and ensure they select the best financing arrangement.
Due Diligence and Sales Contract
Due diligence is a vital part of securing any property transaction. This process involves confirming that the property has a clear legal title, is free from liens or other encumbrances, and ensures that the seller has full ownership and authority to sell the property. As with many international real estate markets, the due diligence phase typically includes a thorough review of property titles, title searches, and surveys, ensuring that the property complies with zoning and land-use regulations.
The Cayman Islands does not impose any capital gains tax on property sales, which is a significant advantage for investors. For foreign buyers, the process is relatively straightforward, as there are no restrictions on foreign ownership of property. Buyers are encouraged to engage with a local attorney who specializes in real estate to handle legal matters, including confirming the legal standing of the property and ensuring compliance with local regulations​.
Once the due diligence process is complete, the purchase is finalized through a sales agreement. The title deed is then transferred to the buyer upon settlement.
Property Buying Costs and Taxes in the Cayman Islands
| Transaction Costs | ||
| Who Pays? | ||
| Property Transfer Tax | 7.50% | buyer |
| Legal Fees | 1.00% - 2.00% | buyer |
| Notary Fees | 0.00% | buyer |
| Real Estate Agent Fee | 4.00% - 10.00% | seller |
| Costs Paid by Buyer | 8.50% - 9.50% | |
| Costs Paid by Seller | 4.00% - 10.00% | |
| ROUNDTRIP TRANSACTION COSTS | 12.50% - 19.50% | |
| Source: Global Property Guide, PWC, KPMG | ||
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.
Stamp Duty on Conveyance or Transfer:
Stamp Duty on Conveyance or Transfer of immovable property is generally levied at 7.5% of property value.
Reduced rates of 0% and 2% may apply to first-time Caymanian purchasers of real property under certain conditions.
Legal Fees:
Legal and other registration costs can add around 1% to 2% of property value to the total cost.
Real Estate Agent's Fee:
Real estate agent commission ranges from 4% to 10%, depending on the property price. It is typically paid by the seller. Most agents are members of the Cayman Islands Real Estate Board Association (CIREBA).