Short answer: Investing in any type of real estate property in the Cayman Islands is absolutely safe. In fact, not only is it safe, it can also be quite lucrative.
When it comes to buying real estate in the Caribbean, it is a widely held opinion that the Cayman Islands is the safest and soundest option available, especially for investors that are looking to hold their properties over the long haul.
The country’s real estate industry has proven its tenacity and resilience many times over the last decade. In fact, it even surpassed expectations when it registered record-breaking sales for two consecutive years amidst a strict COVID-19 lockdown.
Cayman’s natural beauty also makes it one on the world’s most desirable luxury island destinations for both tourists and expats, bringing in a steady influx of high-end property developments that contribute greatly to sustaining the growth of its real estate market.
As value and demand continue to be on the upswing, property owners in Cayman can actually make a tidy profit on their investment even while they’re just sitting on the beach with a tall drink and enjoying the breathtaking sceneries that surround their island home.
Safe, stable and secure
Aside from the excellent return on investment, Cayman has numerous advantages for property owners that other destinations in the Caribbean region (or anywhere else in the world) will find hard to match as a whole.
Many UHNW and HNW individuals are attracted to invest in Cayman Islands real estate because of the country’s political stability. Being a British overseas territory, Cayman retains close relational ties to the United Kingdom, which holds responsibility for its foreign relations, security, defense, and good governance.
Cayman is also one of the most preferred banking destinations for wealthy individuals and businesses from around the world, making it a major international center for investment funds, banking, insurance and other financial services and products that are regulated in accordance with global standards.
And while finance and tourism are still considered the twin pillars of Cayman economy, it is exciting to see the government vouch for “real estate sales and development” as one of the main industries that fuel the country’s economic engine.
Owning real estate property in an environment that is safe, stable and secure provides investors in the Cayman Islands with greater confidence and peace of mind, knowing that their assets are better protected against the shifting tides and global challenges of financial uncertainty and political conflict.
Zero taxes and a strong currency
Here’s another bonus: The Cayman Islands is one of only three countries in the Caribbean that does not impose property taxes.
Cayman is a tax-neutral jurisdiction, which means there are no recurring property, income, capital gains, corporate, inheritance, or gift taxes imposed on property owners, whether they are seasoned real estate investors or first-time buyers. There is only a one-time stamp duty which applies to the transfer of Cayman Islands real property and is imposed at a rate of 7.5% of the property’s market value, subject to certain concessions.
Meanwhile, the Cayman Islands Dollar (KYD) is currently listed as the 7th highest currency in the world, with higher trading value than both the Euro and the US Dollar. It is also the only Caribbean currency that made it to the list.
Just recently, international credit rating agency Moody’s announced that the Cayman Islands has maintained its Aa3 bond issuer rating and Aaa country ceiling rating, along with a stable economic outlook report — another testament to Cayman’s stable political environment, prudent fiscal management and proven economic strength.
Property titles are guaranteed by government
Perhaps one of the most attractive reasons for buying real estate in the Cayman Islands is that the government issues a clear title guarantee for all property transactions. This adds another layer of safety to the purchase as it protects the buyer from any legal encumbrances and eliminates the need for title insurance.
Under this procedure, all transfers of real estate titles are entered with the Cayman Islands Land Registry, which records property ownership for both homes and raw land. All boundaries of each parcel of land are defined and issued with a title number that is easily accessible through a centralized recording system, ensuring that all real estate transactions will be smooth, straightforward, and hassle-free.
If you wish to know more about investing in Cayman Islands real estate, our trusted team of real estate professional at ERA Cayman would be more than happy to assist you.
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ERA Blogs are written in-house. It is a team effort and we all contribute our ideas and suggestions. ERA is a diverse Team of Real Estate Agents who each have specialties. We have Seven Mile Beach Real Estate Experts, Beachfront Real Estate Experts, Commercial Real Estate Experts and everything you could possibly need when looking for a Real Estate Team. The blog is summarized and submitted by ERA’s Web Team.
