Why Investing in Cayman Islands Real Estate is a Good Idea

If you’re looking to invest in international real estate, you’re already bound to have a number of potential locations in mind. But have you considered investing in the Cayman Islands?

Investing in real estate is an attractive prospect. If you choose the right property, and have a carefully thought-out plan, the benefits are seemingly endless. Who wouldn’t want to enjoy predictable cash flow, high returns, tax advantages and a diverse portfolio?

While most real estate investors are likely to start off by looking at properties in their own backyard, you aren’t necessarily restricted to this. In fact, you can invest in real estate just about anywhere! 

One location which attracts plenty of international investment is the Cayman Islands. But why is Cayman Islands real estate so popular? And, most importantly, should you hop on the bandwagon before it’s too late? We’ll answer these questions and more in this post, as we discuss why investing in Cayman Islands real estate is such a good idea.

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Why is the Cayman Islands Perfect for Real Estate Investment?

The Cayman Islands is Tax Neutral

One of the most obvious benefits of investing in real estate in the Cayman Islands is the fact that it’s tax neutral. This means that there is no income, capital gains or inheritance tax to worry about – nor are there any property taxes. 

Instead of earning revenue through direct taxation, the Caymans raise money through other fees, including work permits, financial transactions, and import duties. The Caymans also don’t have corporate taxs, which is why so many multinational corporations elect to base subsidiary entities to avoid taxation.

Real Estate Law is Consistent Across the Cayman Islands

In many countries, real estate law can differ between different districts, which can make things very confusing when you’re looking to invest in real estate. It can be very easy to refer to the wrong legislation if you haven’t done enough research!

Thankfully, there are no such issues if you invest in real estate in the Caymans. Property law remains consistent across the board, which means you know exactly where you stand when it comes to handling legal matters, such as property transfers and title searches.

There Are No Restrictions to Foreign Ownership (for Personal Use)

If you plan on investing in real estate for personal use in the Cayman Islands, then you’re in luck. There are no restrictions on foreign investment on property for personal use, which means you’re free to invest to your heart’s content without being pinned down by tight legislation.

There are a number of countries around the world that place tight restrictions on foreign ownership when they would otherwise be an attractive prospect. For example, Thailand completely prohibits foreign ownership of real estate, while countries like Australia impose heavy taxes to put off prospective investors.

It’s Easy to View the Past History of Properties

There’s no denying that foreign investment is a risk. Oftentimes, it can be difficult to get a comprehensive understanding of a property unless you visit it in person. This can be an issue in itself when it’s on the other side of the world!

There are no such issues in the Caymans. The Cayman Islands Land Registry has a sophisticated system where each property is assigned a unique block and parcel number. This means that buyers can view the records for a property, including prior transactions, and search for any specific restrictions relating to the property.

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Simple Real Estate Procedures

Plenty of foreign jurisdictions play host to very expensive and needlessly complicated real estate procedures. The Cayman Islands is quite the opposite, as the overall investment process is easy to follow.

As mentioned, there are no taxes to worry about, with the only additional expenditure being Stamp Duty Land Tax. Even then, Stamp Duty is very easy to calculate. The current rate is 7.5 percent of the property’s market value, and it is payable and due within 45 days of contracts being signed.

The Cayman Islands Presents a Growing Market

While there was an inevitable drop in the number of property sales in 2020 due to the COVID-19 pandemic, this doesn’t paint the full picture. Up until 2020, the property market in the Caymans was growing year on year and is still expected to bounce back stronger now the worst of the pandemic appears to be behind us.

Additional 2020 statistics only serve to support this notion. At the close of 2020, there was an 84 percent increase in the number of pending transactions, with a 98 percent increase in value for real estate.

High Return on Investment (ROI)

The potential ROI for investing in real estate in the Caymans remains very high, which means your investment is likely to be well protected if you decide to take the plunge. 

In fact, the real estate sector has been seen as stable for some time, with there being very little fluctuation over the previous two decades. 

There are a Diverse Range of Properties on Offer

What sort of property do you have in mind when it comes to investment? A modest apartment? A vibrant family home? Whatever you’re looking for, you’re bound to find it on the Caymans.

Different areas have different types of properties on offer, so it’s a good idea to do plenty of research to see what you’d be interested in pursuing. For instance, family homes are everywhere you look in West Bay, whereas villas and condos are much more common on Seven Mile Beach.

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Are You Ready to Invest in Real Estate in the Cayman Islands?

Hopefully, this post has given you a better understanding of why investing in real estate in the Cayman Islands is a solid financial move. Of course, there’s always an element of risk when it comes to these sorts of ventures, but there is no reason why you can’t make it a success with a solid plan of action.

Have you ever invested in real estate in the Caymans, or are you currently in the process of doing just that? Feel free to leave a comment below with your thoughts!

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial or investment professional. Be sure to consult a financial or investment professional if you’re seeking advice regarding investing in real estate in the Cayman Islands. We are not liable for risks or issues associated with using or acting upon the information on this site.

Photo credits:

Photo 1 – Ronny Rondon via Unsplash

Photo 2 – Tierra Mallorca via Unsplash

Photo 3 – Cytonn Photography via Unsplash

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