A guide to foreign ownership of property in the Cayman Islands

The Cayman Islands attract international property investors not only for the islands’ lifestyle and climate but also for the certainty of land ownership. This is available through a transparent and reliable land registry system where the title is guaranteed by the government. 

Foreign individuals and companies considering owning property in the Cayman Islands should be aware of the rules. 

Ownership by foreign individuals 

Foreign individuals do not need a government licence to buy real estate in the Cayman Islands. However, owning multiple properties or using them for business purposes may require a work permit or licence. 

Ownership by foreign companies 

A foreign company cannot hold land in the Cayman Islands unless it applies to be registered as a foreign company with the Cayman Islands Registrar of Companies.  

Once registration is approved, the company receives a Certificate of Registration. This is conclusive proof of compliance with the registration requirements and is needed when registering the transfer of land at the land registry. 

The only exception is for companies that can issue bearer shares, certificates or coupons. In this instance, the company cannot own land in the Cayman Islands unless explicitly permitted by the Minister of Finance. 

Stamp duty on purchases 

When purchasing property in the Cayman Islands you must pay stamp duty on either the sale price or market value of the property, whichever is higher. Duty at a rate of 7.5% is payable where the sale price is below CI$2,000,000 (c.US$2,400,000) and 10% thereafter. The rates of stamp duty are the same whether the purchaser is an individual or a company.

Stamp duty concessions are only available to Caymanian buyers therefore foreign buyers are not eligible to apply. 

A tax also applies to the transfer of shares in a company that owns or has an interest in Cayman Islands property. The rate of tax is generally the same as the stamp duty applicable to real property.

The above stamp duty summary is intended for general guidance only. Buyers should always seek advice on the applicable rate of duty due on any transfer of land or shares in an entity that owns an interest in Cayman Islands’ real estate.

Doing business in the Cayman Islands 

While a government licence is not required for foreigners to purchase property in the Cayman Islands, rules may apply when leasing property. 

The leasing of commercial real estate or more than two residential units (in addition to the owner’s residence) is considered doing business in the Cayman Islands. In this instance, the property owner will need to apply for a Trade and Business Licence to undertake these activities.

If the property owner is an individual, a work permit may be required and if the property owner is a company, it must be at least 60% Caymanian owned and controlled. If this is not the case, then a licence will also be required under the Local Companies (Control) Act. 

Summary

With no restrictions on foreign ownership and a transparent, registered land system backed by the government, property ownership in the Cayman Islands is highly accessible. The absence of capital gains, inheritance taxes and annual property taxes enhances the Cayman Islands’ appeal to international investors.  

How Ogier can help 

As specialists in Cayman Islands property law, our team combines local insight with expertise across all areas of residential and commercial property law. We navigate the legal and regulatory landscape with precision to give you confidence at every step of your real estate transaction. 

Our property team can assist with relocation, property acquisition, estate planning and business setup in the Cayman Islands. Engaging professional assistance ensures a smooth transition to your new life and investment in the Cayman Islands. 

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice