Guide to Property Taxes in the Cayman Islands

The Cayman Islands do not impose personal income tax, corporate income tax, capital gains tax or a general annual property tax.

Consequently, both resident and nonresident individual property investors can generally receive rental income and realize capital gains from Cayman Islands real estate without Cayman Islands income or capital-gains taxation.

Rental Income Tax

There is no personal income tax on rental income in the Cayman Islands.

Accordingly, a nonresident individual receiving ordinary long-term rental income from Cayman Islands real estate generally has no Cayman Islands income-tax liability on that rental income.

No operating-expense deduction is required for this calculation because there is no Cayman Islands personal income tax against which such expenses would be deducted.

This treatment should be distinguished from stamp duty on leases and Tourist Accommodation Tax, which can apply independently of income tax.

Tourist Accommodation Tax

Owners who provide qualifying short-term accommodation to tourists are generally subject to Tourist Accommodation Tax at 13% of the gross accommodation charge.

Unlike ordinary long-term residential rental income, which is not subject to Cayman Islands personal income tax, tourist accommodation can therefore create a significant tax liability.

At annual gross accommodation income of $18,000, the 13% Tourist Accommodation Tax would amount to approximately $2,340, leaving $15,660 before operating expenses.

At annual gross accommodation income of $72,000, the tax would amount to approximately $9,360, leaving $62,640 before operating expenses.

At annual gross accommodation income of $144,000, the tax would amount to approximately $18,720, leaving $125,280 before operating expenses.

Stamp Duty on Mortgage

Stamp duty is payable at 1% for mortgages up to CI$300,000 and 1,5% for bigger amounts.

Capital Gains Tax

The Cayman Islands impose no capital gains tax on individuals.

Therefore, a nonresident investor who purchases Cayman Islands real estate and subsequently sells it for a profit generally pays 0% Cayman Islands capital gains tax on the gain.

Corporate Tax

The Cayman Islands do not impose a general corporate income tax.

Accordingly, a Cayman company holding investment property is generally not subject to Cayman Islands corporate income tax on rental profits.

There is also no general corporate capital gains tax on gains realized from the disposal of property.

Stamp Duty on Transfer of Property

Stamp duty is one of the principal taxes associated with acquiring real estate in the Cayman Islands.

For ordinary property transactions with a value below CI$2 million, stamp duty is generally charged at 7.5% of the applicable property value.

From 1 January 2026, a higher 10% stamp-duty rate applies to transfers of real estate valued at CI$2 million or more.

Buying and Selling Costs/Taxes

Property Holding Tax

No property taxes are levied in the Cayman Islands.