Lower stamp duty comes into effect for Caymanians
(CNS): Local people looking to buy their first or even second home can now look forward to enjoying a lower stamp duty rate than non-Caymanians and overseas owners. The regulations that paved the way for the cut were gazetted on 2 February and are now in effect. The change stems from a private member’s motion brought by Opposition Leader Joey Hew and accepted by the government.
The amendment increases the value of properties on which stamp duty will be exempted or reduced for first and second-time Caymanian buyers and expands the concessions to properties in all areas of Cayman.
For first-time Caymanian buyers, stamp duty is removed completely on the purchase of property valued up to $550,000 and applied at a reduced rate of 3.75% for properties valued between $550,000 and $650,000 on the amount over the $550,000 threshold only.
For second-time Caymanian buyers, stamp duty will be charged at a rate of 3.75% on properties worth $600,000 or less. The increased property value thresholds have been in place operationally at the Stamp Duty commissioner’s discretion since September 2023.
Under the Stamp Duty Act, the stamp duty commissioner is the finance minister.
The regulations allow the concessionary rates for Caymanian buyers to apply to all properties throughout Grand Cayman and the Sister Islands. Previously, the stamp duty concessions for Caymanians didn’t apply to properties in specified locations, including the Seven Mile Beach area and some areas along Eastern Avenue and North Church Street.
The regulations do not change stamp duty rates for non-Caymanian buyers, which will continue to be levied at 7.5% on all properties, regardless of the value or location.
Premier Juliana O’Connor-Connolly, the current finance minister, said the amendments were “positive for Caymanian people” as they would now be able to receive the stamp duty concessions when buying property throughout the Cayman Islands.
The regulations can be found here.
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Actually I see this very differently than the masses.
How about stopping the racketeering system that real estate agents are doing on this island. Cayman seems to be on a fire sale and being sold to the rest of the world. The change needs to happen from government from relying on these outrageous fees. Also, focus on paying caymanians the same you pay foreigners. Cayman is expensive! We keep undermining caymanians with these low salaries. Not everyone wants to get on their knees for more salary.
Very few Caymanian can afford a home at $550K, we should all go and ask Wayne for some loans!
Spot On @9:41
will do nothing and only push up prices more…
time for cig to think outside box
Both my kids applied for the previous privilege but the Minister of Finance was too busy to approve their applications and they didn’t get their waivers. We were told, it is not an ESTABLISHED right, it is up to the discernment and availability of the MOF so if he or she happens to be unavailable well that is just too bad for you. Better luck never.
Does the term “property” refer only to housing or does it also include raw land?
The article seems to switch back and forth.
CNS: We’ve published a couple of other articles on this issue so this one is brief and is just on the concessions for property with housing on it. If anything is not clear, you can click through to the amendment bill.
and just like that, CIREBA will list every level 1 bedroom apartment for 550k. funny how that works huh.
Exactly, it should be free for Caymanian regardless if it’s is 1st or 2nd!
When you have to pay 10% downpayment, then %3.75 becomes too much. Thats $20,625 on stamp duty alone on a property worth $550,000.
The whole system needs a revamp.
Caymanians shouldn’t be paying stamp duty on the amount borrowed.
Stamp duty should be on a sliding scale based on the number of years on island. Start at 15% and decrease the amount over time. Caymanians should just be paying a reduced amount. This could apply to properties under US$3MM so that international investor market is untouched.
Still not enough. Homes are unaffordable, land is unaffordable & a decent mortgage is hard to obtain. There’s no stamp duty cut to get if you can’t buy the property in the first place!!
Agreed! Because which first-time buyer can afford a property at $500k?
The issue isn’t stamp duty, or any tinkering around the edges, it’s the lack of affordable housing being built.
If you let developers do what they want, they will only build multi-million homes for overseas buyers. That’s not overseas buyers’ fault; it’s not the fault of expats who are already here in Cayman; it’s just economic reality. The failure to address it is a CIG failure.
This needs to be a priority for the new government.
And with Kenny and Juju spending there’s no money to build affordable homes.
Who in their right minds would spend $8Million on a not needed park, or $8Million on Kenny beach, yet to happen.
First prize goes to spending over $8Million on Fees alone for a not wanted $170Million prison.
Add that up and you’ll see how many homes that would build.
Hope the next government sees some sense in stopping this waste.