Buying property in such a beautiful Caribbean destination as the Cayman Islands holds obvious allure but there are many reasons for investing in Cayman Islands real estate of which the savvy investor should be aware.
Life is less taxing in the Cayman Islands.
Often misrepresented as a tax haven the Cayman Islands is one of the largest and highly regulated Offshore financial centres in the world, holding a greater proportion of hedge funds than any other Offshore jurisdiction in the world. This is in large part due to the favourable taxation laws of the Cayman Islands, the government only charges flat licensing fees on financial institutions that operate in the islands as well as work permit fees on foreign labour. There are no taxes on profits, capital gains, income or any withholding taxes charged to foreign investors. There are no estate or death duties payable on Cayman Islands real estate or other assets held in the Cayman Islands.
From a tax perspective the two most tangible benefits for those buying real estate in the Cayman Islands are that there are no annual real estate taxes, in fact no real estate taxes full stop and also playing host as one of the world’s most sophisticated financial services centres is not with out its benefits. The Cayman Islands enjoys the highest income per capita in the Caribbean, enjoys a level of luxury and infrastructure unmatched in the Caribbean and subsequently very little crime to speak of.
British Overseas Territory.
As a British Overseas Territory the Cayman Islands enjoy a stable political environment, the UK is represented in Cayman by a Governor who is the de facto head of state appointed by the Queen on the advice of British Government the Premiere is democratically elected as leader of the party with the most seats in the Legislative Assembly. English common law is the basis for the legal system in the Cayman Islands with locally enacted statutes and Orders-in-Council.
No restriction to Foreign Ownership
Unlike other Caribbean islands and Bermuda there is no restriction of foreign ownership of property, other than the number of properties a foreign national can hold without requiring a business license. Foreign ownership of property is promoted and encouraged by Government that guarantees Title.
Ease of property transfer
The transfer of property in the Cayman Islands is one of the most efficient and simple real estate processes anywhere in the world requiring a single Land Transfer document signed by both the Vendor and Purchaser to legally transfer Title. It is common practice in the Cayman Islands to have what is colloquially referred to as a “Search and Stay” in place covering the period in which the transaction takes place this stops any change being made to the title by another party, for example it would prevent an additional charge being added to the property.