The Cayman Islands – A Great Place to Invest
Are you thinking about investing in Cayman Islands real estate?
We have put together this guide for investors considering making an investment in property in the Caribbean and wondering whether the Cayman Islands might be the best place to choose to buy property, whether that might be an individual home, condo or parcel of land.
Here we take a look at the top reasons for buying property in the Cayman Islands and for investing in this trio of islands, high potential investment opportunities and the best places to invest.
7 Reasons to Invest in Cayman Islands Real Estate
1. Tax Neutral
2. Safe & Secure Prosperous Economy
3. World-Renowned Tourism Destination
4. Excellent Infrastructure
5. Flourishing Real Estate Market
6. Straightforward Path to Residency
7. Easily Accessible Destination
Best Places to Invest in the Cayman Islands
Investment Opportunities in the Cayman Islands
Find Out More About Investing in the Cayman Islands
From its highly attractive tax laws to its postcard-perfect white sand beaches, there are all kinds of reasons for choosing to invest in the Cayman Islands. Here are our top 7 reasons to invest in this British Overseas Territory in the western Caribbean Sea.
Ask investors about the appeal of the Cayman Islands and many will point first and foremost to the territory’s tax neutral status. A highly successful offshore financial centre, the Cayman Islands offers complete freedom from direct taxation on both residents and Cayman Islands companies. There is absolutely no income tax, no wealth tax, no corporation tax, no withholding tax on dividends, no capital gains tax, no inheritance tax, no sales tax and no VAT. While transfers of property are subject to stamp duty there is no annual property tax. In place of direct taxation, the government generates the majority of its revenue via indirect taxation including such as duties on imports, fees to register companies in the islands, a tax on tourist accommodations and an airport departure tax which is included in the cost of airline tickets. Tax neutrality has made the Cayman Islands a leading destination for international businesses as well as affluent individuals who have chosen to become resident in the islands.
In addition offering a highly attractive tax environment, the Cayman Islands is also a safe and secure destination with a very low level of crime and unemployment as low as 2.8%. The territory is a highly regarded and well regulated international financial center and home to more hedge funds than any other jurisdiction. As a British Overseas Territory, the Cayman Islands also benefits from political stability, a democratic parliamentary system, a legal system based on English Common Law and a stable currency pegged to the US Dollar. The territory has achieved successive years of growth, expanding by 3.3% in 2018. Primarily powered by the tourism and financial services sectors, the islands have emerged as one of the world’s most prosperous jurisdictions. Thanks to its flourishing economy, the Cayman Islands boasts a very high standard of living which is the envy of many other countries in the region and far beyond.
While the Cayman Islands may be best known by some as a tax neutral offshore financial center, for others its appeal lies in very different areas. The three islands which make up the Cayman Islands (Grand Cayman, Cayman Brac and Little Cayman) are also blessed with breathtaking natural beauty. The islands’ shores are fringed by pristine white sand beaches which regularly appear in rankings of the world’s best beaches, the most famous of which is Grand Cayman’s Seven Mile Beach. The waters surrounding the islands are also filled with their own natural treasures. Complemented by excellent luxury hotels and resorts finetuned to the needs of jet set guests, as well as great dining, shopping and entertainment options, the Cayman Islands has attracted record numbers of overseas visitors in recent years. In 2018, for example, the islands hosted 2.4 million tourists, making it
As one would expect from a leading destination which is home to many of the world’s most discerning investors, the Cayman Islands boasts world-class infrastructure, including reliable utilities and advanced communication systems, well-maintained roads and excellent healthcare facilities. The state of the art Health City Cayman Islands, for example, is an advanced medical facility with well respected doctors offering a range of healthcare services from orthopaedic surgery to cardiology to local, regional and international patients.
Due to all the factors outlined above, the Cayman Islands has one of the most robust and dynamic real estate markets in the Caribbean. Property is built and finished to a very high standard and is highly sought after. There are no restrictions on foreign nationals investing in real estate in the Cayman Islands, the purchasing process is relatively straightforward and, unlike in many other destinations, there are no annual property taxes. Land ownership information is efficiently recorded in a computerized Land Registry system which allows the government to guarantee land ownership, providing buyers with peace of mind and accelerating the property purchase process. With a flourishing property market driven by both local buyers as well as international investors in search of vacation homes, second homes and investments offering the potential for high returns and capital appreciation, demand far outstrips supply, particularly in the most desirable areas.
In contrast to some other low tax jurisdictions, the Cayman Islands is extremely welcoming to investors of independent means and offers a straightforward path to residency. “Wealthy retirees, entrepreneurs and investors” who are aged over 18, are financially self-sufficient and have invested in real estate in the Cayman Islands may be eligible for a Residency Certificate for Persons of Independent Means. This allows successful applicants to move to the Cayman islands and live in the territory. To qualify, applicants who intend to become resident in Grand Cayman must be able to demonstrate an annual income of at least CI $120,000 derived from outside of the Cayman Islands, maintain a bank account in the Cayman Islands with a minimum deposit of at least CI $400,000 and invest CI $1 million in the territory, at least half of which must be in Cayman Islands real estate. Qualifying values are slightly lower for those intending to reside in Cayman Brac or Little Cayman. Residency Certificates, which are valid for a period of 25 years and are renewable thereafter, allow successful applicants and their spouses and dependents to become resident in the Cayman Islands and enjoy all the benefits of this incredible destination.
Find out more: Cayman Islands Residency
Ideally located approximately 1 hour from Miami, 3 hours from New York and 12 hours from London, the Cayman Islands is an easily accessible destination. An ever-growing number of airlines operate direct flights from many world cities to Owen Roberts International Airport on Grand Cayman, the main airport serving flights to the territory. Owen Roberts International was recently renovated and expanded to boost capacity to up to 2.7 million travellers per year. Several other infrastructure improvements, such as major road works, have either been recently completed or are underway, all of which are designed to further enhance accessibility.
Summary: A Top Tier Caribbean Destination
So, in summary, whether you are drawn to the breathtaking beaches or the tax benefits, the unrivalled quality of life or the booming real estate market offering tremendous potential for very high returns, the reasons to invest in the Cayman Islands are many and varied.
To find out more about where to invest in the islands, explore the best places to buy property in the Cayman Islands in our guide to buying property in the Cayman Islands.
Discover investment opportunities in the Cayman Islands on our website:
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7th Heaven Properties is here to help you. We have the insight and advice you need to begin investing in Cayman Islands real estate.
To find out more, contact 7th Heaven Properties, the Luxury Caribbean Property Specialist.
We look forward to working with you and helping you find your perfect property in the Cayman Islands.