Aspiring homeowners in the Cayman Islands have something to celebrate. The government has announced a major change to the stamp duty regulations, making it easier for first-time Caymanian buyers to afford their dream homes.
Under the new policy, properties valued at $550,000 or less will be exempt from stamp duty — a move that will significantly reduce upfront costs for many families.
“This important change gives first-time buyers more options — not only in what they can purchase but also where they can buy,” says ERA Cayman real estate agent Kristina King.
“Property prices continue to rise each year, so first-time buyers should take advantage of this opportunity and start their search sooner rather than later,” she advises. “Investing now will certainly pay off in the future.”
A game-changer for new homeowners
Previously, stamp duty concessions were available only in specific areas, meaning Caymanians purchasing property in prime locations such as Seven Mile Beach and parts of George Town still had to pay full rates. However, the new regulations ensure equal benefits for first-time buyers across the entire Cayman Islands. Whether purchasing in West Bay, Bodden Town, or any other district, Caymanians can now enjoy the same tax relief.
For properties valued between $550,000 and $650,000, a reduced stamp duty rate of 3.75% will apply to the amount exceeding $550,000.
Similarly, first-time buyers of land worth up to $250,000 will also be exempt, while land purchases between $250,000 and $350,000 will attract a 3.75% duty on the portion above the exemption threshold.
Homes and land exceeding these values will be subject to the standard 7.5% stamp duty rate.
Timely response to market changes
This adjustment comes at a time when property prices in the Cayman Islands have been steadily rising. By raising the threshold for first-time Caymanian buyers from $400,000 to $550,000, the government is acknowledging these market changes and making homeownership more accessible to its citizens.
The stamp duty exemption — formally presented as Stamp Duty (Rates of Duty) Regulations, 2025 — is seen as a significant gain for Caymanian buyers, making it easier for more locals to invest in property without the burden of hefty tax costs. This change is expected to create more opportunities for homeownership and financial stability.
While the reduction in stamp duty is a positive step, some observers say there is still a need for additional policies to further ease the financial burden of purchasing a home. Expanding access to affordable housing remains an important goal to ensure that more Caymanians can achieve homeownership.
Second-time buyers also benefit
While the primary focus of this policy is first-time buyers, there are also benefits for those purchasing a second property. Caymanians buying a second home valued at $600,000 or less or second lot of land valued at $300,00 or less, will be subject to a reduced 3.75% stamp duty.
Similarly, couples or small groups purchasing together will enjoy this lower rate of 3.75% for properties valued up to $700,000 and land worth $550,000 or less.
This stamp duty reform is a significant win for local buyers, particularly young professionals and families looking to establish roots in the Cayman Islands. Removing this financial barrier will encourage more Caymanians to invest in real estate, leading to greater economic stability and homeownership rates.
It is important to note, however, that these exemptions and reduced rates apply only to Caymanian buyers. Non-Caymanians will continue to pay the standard 7.5% stamp duty on property purchases, regardless of value.
For those hoping to make their first real estate purchase, this is an opportune moment to explore the market and take advantage of these tax savings. With housing affordability being a key concern for many, this policy change marks an important step toward making property ownership a reality for more Caymanians.
Ready to buy your first home in the Cayman Islands? Our trusted and reliable real estate professionals at ERA Cayman will be more than happy to help you find your dream abode. Contact us today!