Advantages of Buying Real Estate in the Cayman Islands
It’s no big secret that the Cayman Islands is one of the world’s safest havens for investing in real estate. Over the last three decades, property prices in Cayman have continued to rise steadily — proof of its genuine viability as a secure, long-term investment.
So, why is investing in Cayman real estate such a winning venture?
Clear Title Guarantee
All property transaction in the Cayman Islands are recorded with the Land Registry through a sophisticated database system where each property is assigned a unique block and parcel number. This efficiently defines ownership and other interests therein. Through this system, interested parties can conveniently verify current records, review past transactions, and search for any restrictions or liens on the property.
According to the Land Registry Procedure Manual, the most important single component of this new system is the government guarantee of title. The Clear Title Guarantee is what makes buying property in Cayman a secure and financially sound investment, as government itself guarantees absolute right of ownership for each parcel of land.
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This also makes the process of purchasing real estate in the Cayman Islands quite simple and straightforward, as it eliminates additional administration requirements and property transaction costs. Many international buyers are often unaware that in some Caribbean countries (such as Barbados, Grenada, St Lucia, St Kitts and Nevis, among others), foreigners who wish to purchase residential real estate must obtain an Alien Land Holding License (ALHL) on top of the quoted price of the property.
In contrast, there are no foreign restrictions on ownership of land and no alien landholding licenses required in the Cayman Islands.
Absolute freedom from direct taxation
As one of the top five offshore financial centers in the world, the Cayman Islands prides itself in being a transparent and efficient tax-neutral jurisdiction.
There are no recurring income, property, corporate, inheritance, capital gains, or gift taxes in the Cayman Islands. It is one of only three countries in the Caribbean region that does not impose property taxes, and certainly the most progressive of the lot.
Return On Investment
The Cayman Islands real estate industry has performed exceedingly well over the past decade, producing robust sales and ever-increasing land prices — even during the strict lockdown imposed during the height of the COVID-19 pandemic. In fact, residential property sales soared during this period as Cayman attracted more high-end investors who wanted a safe sanctuary to live and work in while the pandemic raged across the globe.
On top of this, there many other reasons why Cayman attracts discriminating buyers who are in the market for long-term property appreciation. Cayman Islands real estate continues to be a popular investment in tandem with ongoing and new development projects, particularly on Grand Cayman.
Recent reports show that property-related revenues were a staggering $18.5-million higher than anticipated by the first half of 2022, maintaining the real estate industry’s position as an influential driving force in the local economy.
In addition, there is no requirement to pay taxes on income from leasing a property, which makes owning Cayman property a gainful source of rental income throughout the year.
Buyers can also choose to invest in raw land and in most cases, these can be held indefinitely with no obligations to build and no annual taxes due, making land ownership a profitable long-term investment opportunity.
Luxury living in the heart of paradise
A safe and secure British Overseas Territory that is easily accessible by international flights from most major capitals of the world, the Cayman Islands has always been a favored destination for high net-worth individuals who desire the best of both worlds — enjoying the serene, natural beauty of an island paradise without sacrificing the luxuries and conveniences of modern living.
According to Moody’s Analytics, Caymanians enjoy a standard of living comparable to that of Switzerland — a rarity for any country in the Caribbean region — with a highly stable currency and a thriving economy. The islands are peaceful, welcoming, and relatively crime-free. Cayman is also home to a culturally diverse population represented by over a hundred nationalities, living and working together harmoniously.
While known for its fabled dive destinations and infinite stretch of white sand beaches, the Cayman Islands is more than just a premiere tourist destination — it is where people who experience the unique Cayman lifestyle come to stay because of its excellent health care system and medical services, quality education in both public and private schools, reliable infrastructure and public utilities, and high-quality real estate developments.
For those seeking to gain long-term or permanent residency in the Cayman Islands, there are also several residency by investment programs for persons of independent means.