When purchasing a property in the Cayman Islands or even just scouting for properties you need to make sure you know what fees are involved in the sale of a property in order that you can budget accurately. Most fees are due at the end or close to the end of the sales process and banks don’t generally lend on these fees, so you will need to have this money available on or near the “closing” or completion of the sale.

Stamp duty is due within 45 days of the land transfer being signed and dated, this one time fee or duty can range from 0% for first time Caymanian purchasers meeting certain criteria to up to 7.5% for properties in the Seven Mile Beach and Georgetown areas. Along with stamp duty there are fees associated with your mortgage of 1% on a lending figure of under $300,000.00 CI and 1.5% over $300,000.00 CI. Along with the bank’s fees there are legal fees which average 1% of the purchase price. If you are financing your purchase these fees will apply. Keep in mind all fees mentioned here are averages and may change depending of the circumstances.

I like to suggest that one builds in a buffer to your budget which includes an additional 1% of the purchase price. This buffer will cover such items as property evaluations or life insurance costs that are or may be required by your lending institution as well as any other items that apply along the way. Better to over budget and have some money left in the bank to celebrate your new purchase rather than trying to count your pennies at the end.