How can the Cayman Islands be tax free?
There is absolute freedom from direct taxation for full and part time residents in the Cayman Islands. With a vibrant economy and diverse tourism sector residents enjoy the highest standard of living in the Caribbean. Examples of how the Cayman Islands generates revenue are:
- Work permits fees.
- Financial transaction fees.
- Stay-over tourism related fees.
- Import duties.
The Cayman Islands are termed tax neutral. For example, UK or US citizens living here must file with the revenue departments in their home countries, although it is possible to avoid income tax by meeting certain criteria. The Cayman Islands offers:
- No Property Tax
- No Income Tax
- No Capital Gains Tax
- No Inheritance Tax.
- No Gift Tax.
- No Corporation Tax
- Duty Free shopping
Compare Tax Havens
The Cayman Islands is internationally recognized for its regulatory standards. It is one of the top five offshore centres in the world, providing strict privacy for corporate clients and private individuals while maintaining its excellent standing on the OECD’s White List. The Cayman Islands compares very favourably to other tax free domiciles.
Here is brief comparison:
|Bahamas||One percent property tax for non-permanent residents|
|Gibraltar||Property Tax is charged at various rates depending on the value of the property. To be considered for full time residency, you need two letters of recommendation deemed worthy by the government.|
|Bermuda||Permanent residency is difficult to get. Non-Bermudans must buy houses worth over $1 million. The government charges a 22% property tax.|
|Switzerland||You pay a little over 20% in income tax|
|Cayman Islands||No property taxes, no personal income taxes, no capital gains taxes, no corporate taxes, no payroll taxes and no withholding taxes on domestic of foreign entities.|
Tax and Property Ownership
From serious property investors to first-time homebuyers there are no ongoing taxes or property taxes. There are no restrictions on foreign ownership and titles are guaranteed by the Government via a modern computerised and reliable Land Registry system.
In most cases, land can be held indefinitely with no obligations to build and no annual taxes due. Thus, land ownership is considered an attractive investment opportunity.
Alongside a world class financial industry is a strong tourism sector and an active rental market. There is no requirement to pay taxes on income from leasing a property and so owning property on the islands can provide rental income throughout the year.
A look through our listings. Shows the diversity of the properties available.
Cayman Islands Mortgages and Tax
Secure your funding before your property search with one of the local banks that provide mortgages services on island. Once basic due diligence is completed, you will find the process straightforward. Borrowing here means incurring a Stamp Tax of 1% (1.5% if over $300,000) plus a down payment of between 5 – 40%. Foreign borrowers, in most cases, will find that interest accrued on their mortgage in Cayman Islands is tax deductible.
A 10 to 15 year term is considered normal, although lenders do offer 30 or even 40 year mortgages. Most lenders do not charge a fee for early repayment.