Cayman Islands Real Estate FAQs
There is a lot to think about when investing in real estate. Whether it’s your family’s primary residence, a vacation home, or a business investment Island Realty can help make it a reality
The seller pays the Realtor fees by first paying the Broker and the Broker then splits this with the agent who brings the purchaser.
Stamp Duty is a one-time fee paid at 7.5% of the purchase price and this applies across the islands. The stamp duty is paid by the purchaser on the sale of the property minus the value of the used chattel/furniture. Cayman Brac has several special duty concessions for purchasers. Ask your sales agent about these savings incentives!
The majority of all condos and homes are sold furnished. The 7.5% stamp duty is calculated on the price you paid for the property minus the value of the used furniture. Subtract the value of the furniture from the value of the home to determine the amount upon which you pay the Stamp Duty.
Known in the Cayman Islands as Strata-by -Laws, these documents are registered on the title for each condominium complex. You can request to see them as a condition to the offer to purchase along with the latest AGM minutes and financial records for the Strata Corporation. Owning part of a well-run Strata or HOA will hold and increase your property value.
Strata Fees are like HOA fees. It is a fee charged based on per sq. ft. of the condo. These fees are set by a budget and are to cover the cost of things like insurance, building maintenance, landscaping, pool maintenance, the Strata Management Company, bulk cable packages, common area water and power usage.
Any outstanding Strata Fees not paid prior to closing will be deducted from the Sellers funds and paid to the Strata Corporation. Your Attorney will request from the Strata Ex-Co or the Property Management Company what is called a “Section 6.4” and this will outline any fees not paid and also if there are any future assessments for the property.
No, we do not need Title Insurance because the Government guarantees the title. It is recommended that you hire an Attorney to research the title and advise you if there are any liens, or problems with the title. The cost is between .55% and 1% of the purchase price.
Most of the land is Freehold, but there are some parcels of land that are leasehold from the Government. Leased land is uncommon, be sure to clarify with your agent and attorney.
Yes, there is NO restriction of foreign ownership. You can own up to 3 properties in your own name, after that you will need to have a license and your Attorney can help with that.
There is no annual property tax levied in the Cayman Islands.
If you are a non-resident you can obtain a mortgage for the purchase, however a maximum of up to 70% financing is available. Interest rates fluctuate and can be between 1 -3% above the US prime rate.
The Cayman Islands Government encourages investment in the island. Residency is assessed on a points system considering factors such as occupation, financial stability and local investments. Thus, owning property is considered advantageous to the process.
There is the Royal Institution of Chartered Surveyors (RICS Valuation Standards) and if you are obtaining a mortgage thru a local bank they will assign an independent evaluation to value the home based on recent and past sales. There are also qualified home inspectors available for hire.
Yes, we have many qualified architects and contractors to help you build your Island Life!