First-time Caymanian buyers of property valued up to $550,000 will no longer have to pay stamp duty. The increased threshold (from $400,000 to $550,000) applies to all properties regardless of location and reflects Cayman’s increasing property prices.
Previously, Caymanians were charged reduced stamp duty rates on property purchased in all locations except in certain areas in and around West Bay and George Town. These areas included Seven Mile Beach and parts of Eastern Avenue and South Church Street.
A summary of stamp duty regulations
The revised regulations ensure that properties and land across Cayman are treated equally. Caymanian buyers will now be eligible for reduced rates, or no stamp duty in some cases, wherever they buy.
- For first-time Caymanian buyers who purchase a home worth less than $550,000 or land worth less than $250,000, stamp duties will be waived.
- Properties valued at, or between $550,000 and $650,000 will attract stamp duty of 3.75% on the amount over the $550,000 threshold.
- The same 3.75% rate will apply to land over $250,000 but below $350,000.
- Stamp duty of 7.5% applies to properties over $650,000 or land over $350,000.
- Stamp duty for non-Caymanian buyers will continue to be 7.5%.
Government’s perspective
Premier Juliana O’Connor-Connolly presented the Stamp Duty (Rates of Duty) Regulations, 2025, in Parliament on Friday. She called the change “positive for the Caymanian people” and acknowledged that Caymanians could now enjoy stamp duty rate reductions when buying property in all areas.
Impact on second-home buyers
Second-home purchases by Caymanians will be charged 3.75% stamp duty for properties worth $600,000 or less, or a second plot of land valued up to $300,000.
Couples and groups of Caymanians buying together will pay 3.75% on second properties valued up to $700,000 and land worth up to $550,000.
Opposition’s response
“I am pleased that the government has expanded on the proposal we put forward in Parliament last year, and I will continue to advocate for policies that reduce the financial burden on our people,” said Joey Hew, Leader of the Opposition.
“Cutting stamp duty in half for many Caymanians is a step in the right direction, but it is only one piece of the puzzle. Home ownership should be within reach for every Caymanian, not just a privilege for a few,” he continued.
Promoting homeownership among Caymanians
The recent changes to stamp duty regulations in the Cayman Islands represent a significant effort by the government to promote homeownership among Caymanians. By increasing exemption thresholds and standardising rates across all locations, these measures aim to make purchasing property more accessible and affordable for both first-time and second-time homebuyers.