First-time Caymanian buyers of property valued up to $550,000 will no longer have to pay stamp duty, with the new threshold applying regardless of location.
Previously Caymanians were charged reduced stamp duty rates everywhere except certain areas in and around West Bay and George Town, such as Seven Mile Beach and parts of Eastern Avenue and South Church Street.
Now, new regulations passed by Parliament mean that properties and land across the whole of Cayman are to be treated equally, so that Caymanian buyers will be eligible for reduced rates, or no stamp duty in some cases, wherever they buy.
Homes worth $550,000 or less, or on land valued at $250,000 or less, are free of stamp duty for first-time Caymanian buyers, while properties valued at between $550,000 and $650,000 will attract stamp duty of 3.75% on the amount over the $550,000 threshold, with the same 3.75% rate applying on land over $250,000 but below $350,000. Stamp duty of 7.5% applies on properties over $650,000 or land over $350,000.
Stamp duty for non-Caymanian buyers will continue to be levied at 7.5%.
Premier: ‘Positive move’
Presenting the Stamp Duty (Rates of Duty) Regulations, 2025, in Parliament on Friday, Premier Juliana O’Connor-Connolly called the change “positive for Caymanian people” and said that Caymanians would now be able to enjoy the reduced stamp duty rate for buying property in all areas.
The change also raised the threshold for first-time Caymanian buyers having to pay stamp duty, from $400,000 to $550,000, to reflect increasing property prices.
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 leader Joey Hew, who last year introduced a private member’s motion calling for government to reduce the restrictions on which properties qualify for reduced stamp duty rates, said, “I’m pleased to see the government expand on the proposal we put forward in Parliament last year, and I will continue advocating for policies that reduce the financial burden on our people. 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.”
Plans to raise the stamp-duty thresholds for first-time buyers were first proposed by then-premier Wayne Panton in 2023.
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