Guide to Property Taxes in the Cayman Islands
Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 0% | 0% | 0% |
There are no income taxes and capital gains taxes in the Cayman Islands. However, stamp duties are payable on most legal transactions, including leasing and selling real property.
Rental Income
There are no income taxes in the Cayman Islands. Rental income is subject to stamp duties on leases (property and land), and tourist accommodation tax.
Tourist Accommodation Tax
Owners leasing properties to tourists are liable to pay tourist accommodation tax levied at 13% on the gross rent without any deductions.
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
No capital gains tax is levied in the Cayman Islands. Property sales are subject to stamp duties on transfers of properties.
Stamp Duty on Transfer of Property
Stamp duty is payable on conveyance on the sale of real property at a flat rate of 7.50%. Caymanian buyers may qualify for stamp duty concessions when purchasing their first property, at rates of 3.75% on first- and second time purchases.
Buying and Selling Costs/Taxes
| 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 | ||
Property Holding Tax
No property taxes are levied in the Cayman Islands.
