Cayman Is.: Overview

RENTAL YIELDS

Last Updated: Mar 13, 2009

Average prices at US$3,274 per sq. m.

Our best estimate is that prices have moved little since 2005. There appears to have been an upward blip in 2006/7, but that has been followed by a downward movement in prices during 2008.

We lack information on rental prices in Gran Cayman. This is because so many lets are short-term. Without a reliable guide to vacancy levels, using short-term rentals figures would distort our results.

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TAXES AND COSTS

Last Updated: Nov 24, 2008

Absolute tax freedom in the Cayman Islands

The Cayman Islands is a no tax jurisdiction. There are no income taxes and capital gains taxes in the Cayman Islands.

Rental Income: Owners leasing properties to tourists are liable pay to tourist accommodation tax a levied at 10% on the gross rent without any deductions.

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BUYING GUIDE

Last Updated: May 04, 2009

Buying costs are high in Cayman Islands

Roundtrip transaction costs are around 10% to 20.50% of the property's value. The buyer pays the stamp duty, which can be 4%, 6% or 7.5% of proeprty value, depending upon the location of the property and the nationality of the buyer. The agent’s commission is around 5% to 10% of the property's value, and is usually paid by the seller.

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LANDLORD AND TENANT

Last Updated: Aug 31, 2006

The law is pro-landlord in Cayman Islands

Rent: Rents and rent increases can be freely negotiated. Landlord power is strong. Landlords can (in practice rather than strict law) increase rents in mid-lease, and impose surcharges for late rents.

Tenant Eviction: There are no specific legal provisions regarding rental contract termination. Landlords often give tenants notice a few days before contract expiry. Using formal legal channels, it takes an average of 180 days to evict a tenant.

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ECONOMIC GROWTH

Last Updated: Mar 13, 2009

Tourism-fuelled economy

The Cayman Islands consist of a group of three islands; Grand Cayman, Cayman Brac, and Little Cayman, home to about 42,000 people.

The territory has enjoyed stable economic growth for many years, with an average real GDP growth rate of 3.2% annually from 1997 to 2007.

Tourism is responsible for more than 70% of Caymans’ GDP. There were more than1.5 million visitors per year. In 2007, about 80% of tourist arrivals came from the US, 6% from Canada and 5% from the UK, according to Department of Tourism.

Offshore finance is the second largest industry. The Cayman Islands is considered the fifth-largest banking centre in the world with about CI$1.2 (US$1.5) trillion in banking liabilities. It is a well-known tax haven, with more registered businesses (about 65,000 companies) on the islands than people.