INCREASE ON STAMP DUTY
New Stamp Duty rates have been approved by Members of the Legislative Assembly and came in to effect on Tuesday 11 December. This increases the rates charged on most property transfers, and adjusts the duty payable on buildings insurance premiums.
Stamp duty on land and property purchases has increased to 7.5% across the board except for concessions available to qualifying first time Caymanian buyers, who will benefit from higher threshold levels. For such purchasers, the 0% Duty threshold has increased from CI$200,000 up to CI$300,000 on home purchases, and a concessionary rate of 2% Duty applies on home purchases between $300,000 and $400,000. On bare land, qualifying first-time Caymanian buyers will be exempt from stamp duty on purchases up to CI$100,000 and will pay 2% on land valued between $100,000 and $150,000. All threshold figures relate to actual market value where this exceeds the purchase price.
Purchases by first time Caymanian buyers at prices/values above the concessionary rates, and all for all other purchases across the Cayman Islands, now attract the full 7.5% duty rate. There is no longer any differentiation in the Duty rate as regards location of the property, or whether the property is purchased by a Caymanian or a non-Caymanian.
“In this respect, the new amendments make it easier to understand”, said Deputy Premier Hon. Juliana O’Connor-Connolly. She noted that property purchased by first-time Caymanian buyers should be for personal and not commercial use.
“Prior to these amendments, there were different rates for Caymanians and for different locations throughout the islands which could be confusing. The changes make the rates standard.”
For more information on Stamp Duty please refer to www.caymanlandinfo/services/stamp duty.
Government has also agreed to increase the duty that is charged on premiums to insure immoveable property located in the Cayman Islands from a flat rate of CI$12 to 2 per cent of the insurance premium cost. This increase does not apply to contents insurance.