With no restrictions on foreign ownership and a transparent, registered land system where the title is guaranteed by the Government, property ownership in the Cayman Islands is highly accessible. The absence of capital gains, inheritance taxes and annual property taxes enhances the Cayman Islands’ appeal to international investors.

However, before making an offer, foreign individuals and companies considering purchasing property in the Cayman Islands should be aware of the rules, or consult an expert in Cayman Islands property law.

Ownership by foreign individuals

Foreign individuals do not need a government licence to buy real estate in the Cayman Islands. However, owning multiple properties or using them for business purposes may require a work permit or business licence.

Ownership by foreign companies

A foreign company cannot hold land in the Cayman Islands unless it applies to be registered as a foreign company with the Cayman Islands Registrar of Companies.

Once registration is approved, the company receives a Certificate of Registration. This is conclusive proof of compliance with the registration requirements and is needed when registering the transfer of land at the Land Registry.

The only exception is for companies that can issue bearer shares, certificates or coupons. In this instance, the company cannot own land in the Cayman Islands unless explicitly permitted by the Minister of Finance.

Stamp duty on purchases

When purchasing property in the Cayman Islands, stamp duty is payable at a rate of 7.5% on either the sale price or market value of the property, whichever is higher. The rate of stamp duty is the same whether the purchaser is an individual or a company.

Stamp duty concessions are only available to Caymanian buyers. Foreign buyers are not eligible to apply.

Stamp duty also applies to the transfer of shares in a company that owns or has an interest in Cayman Islands property. The rate of stamp duty is generally the same as that applicable to real property

Always seek advice on the applicable rate of duty due on any transfer of land as eligibility for concessions requires detailed analysis.

Doing business in the Cayman Islands

While a government licence is not required for foreigners to purchase property in the Cayman Islands, rules may apply when leasing property. The leasing of commercial real estate or more than two residential units is considered doing business in the Cayman Islands. In this instance, the property owner will need to apply for a Trade and Business Licence to undertake these activities.

If the property owner is an individual, a work permit may be required and if the property owner is a company, that company must be at least 60% Caymanian owned and controlled. If this is not the case, then a licence will also be required under the Local Companies (Control) Act.

Professional Guidance

Navigating property ownership and investment in the Cayman Islands requires understanding a variety of legal and regulatory obligations. Engaging knowledgeable local legal professionals ensures compliance and the smooth progress of transactions – especially when dealing with ownership structures, development plans,
or cross-border interests.

Specialist property lawyers can assist with relocation, property acquisition, estate planning and business setup, offering insight into both residential and commercial real estate transactions. Their expertise in local land registration, licensing and planning processes provides clarity and confidence at every stage, enabling investors and homeowners to make informed decisions and avoid costly delays.