Real Estate

Here’s Why the Cayman Islands is Known as a Property Investor’s Paradise

February 24, 2021
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Investors in Cayman Islands property enjoy tax-free ownership as well as a host of other benefits that make the territory one of the most desirable places in the world to invest in real estate.

No matter whether you buy a property in the Cayman Islands as a permanent home, for temporary relocation, as a vacation property, or as an investment and income vehicle, you will be joining one of the safest and most investor-friendly real estate markets in the world. Here are a dozen reasons why:

#1 (Lack of) Taxes First off; there is a business- and investor-friendly tax environment. The Cayman Islands is an offshore financial center with no income tax, property tax, capital gains tax, or inheritance tax. There is a flat 7.5% stamp duty when you buy a property. That’s it.

#2 Guaranteed Ownership Buying a property in the Cayman Islands is simplified. Thanks to a land registry system based on the Torrens System of Land Ownership, where each piece of property is government-registered, with the Land Registry available for public scrutiny. Property title is ‘absolute,’ meaning there is guaranteed security of ownership and title.

#3 High-End Luxury Properties The flourishing Cayman real estate market is geared towards the top end of the market. More than 95% of Seven Mile Beach or waterfront homes for sale in the Cayman Islands are owned by cash buyers, showing strong confidence in the market and in Cayman luxury property.

#4 Return-on-Investment Demand has outstripped supply, meaning new-build prices and resale values are strong. The Cayman Islands has a big vacation rental market for Grand Cayman apartments, offering an average rental yield of between 5% and 7%. 

#5 Accessibility and Privacy There are no restrictions on foreign ownership of Cayman Islands property. Ownership can be held in one or more names of individuals or by a corporation, which does not reveal actual ownership.

#6 A Structured Market The property market is mostly organized and controlled by Cayman Islands Real Estate Brokers Association (CIREBA). Members need to follow strict rules and regulations, a code of ethics, and other guidelines. It uses the Multiple Listing Service (MLS), familiar to property buyers in North America, meaning buyers can work with one Cayman Islands realtor while also having access to every other member’s listings.

#7 Infrastructure and Amenities Excellent telecommunications, transportation infrastructure, banking, and legal services are on a par with countries such as the United States and the United Kingdom, making the Cayman Islands popular with overseas investors looking to buy property in the Caribbean. 

#8 A Booming Population From a population of a mere 10,000 in the 1970s, there are now seven times as many residents, more than half of them expatriates representing some 130 different nationalities. The demand for new housing has grown in tandem, meaning property investors looking for excellent rental returns experience high demand.

#9 International Access Owen Roberts International Airport is a one-hour direct flight from Miami. Thirty-four routes connect Grand Cayman to 31 cities in eight countries, including the USA, Canada, and numerous Caribbean destinations.

#10 Family-Friendly The Cayman Islands is extremely safe, with modern, sophisticated infrastructure and a stable government. It is an English-speaking territory with a legal system based on English common law. The Cayman dollar is pegged to the US dollar, so currency fluctuations are not a worry.

#11 Beaches and Diving The Cayman Islands is home to some of the world’s most renowned beaches, including the famous Seven Mile Beach, popular year-round. The three islands are celebrated worldwide for the quality of their waters and spectacular marine life. Between them, they offer the underwater adventurer more than 300 world-class dive sites.

#12 High Standard of Living The Cayman Islands’ prosperous economy offers one of the highest standards of living in the world and the highest in the Caribbean. It is the world’s sixth-largest banking center.

Most people look at the tax status of the jurisdiction but miss other important benefits such as lifestyle, political stability, the high standard of living, and the consistent appreciation of real estate. The Cayman Islands makes real estate investing easy for foreigners and a canny investment for long-term growth.