The current rates of stamp duty payable on a lease or lease agreement are:
(a) If the term is for less than one year: 5% of the total rent payable.
(b) If the term is one year or more, but does not exceed five years: 5% of the average annual rent. Note: a lease reserving a term of 2 years or more must be in the prescribed form (Lands & Survey Form RL8) although a more thorough lease is often scheduled to the Form.
(c) If the term exceeds five years, but does not exceed ten years: 10% of the average annual rent.
(d) If the term exceeds ten years, but does not exceed 30 years: 20% of the average annual rent.
(e) If the term exceeds 30 years: the same duty as on a sale based on the full market value of the real estate or interest in it.
If the rent in the lease is considered to be less than market value, for the purposes of calculating the stamp duty, the average annual rent will be declared at the market value having regard to any premium charged.
The stamp duty rate on all three Cayman Islands is 7.5% of the higher of (i) the purchase price/consideration and (ii) the market value of the property. Stamp duty is calculated in Cayman Islands currency.
* First time Caymanian buyers pay 0% Stamp Duty if the property comprises land with a building and the consideration or market value is below or equal to CI$400,000.
For undeveloped bare land, first time Caymanian buyers pay 0% Stamp Duty on property valued up to CI$150,000. For land valued above CI$150,000, but not exceeding CI$200,000, the Stamp Duty is calculated at 2%. In the case of land without a building where the value exceeds CI$200,000 then the stamp duty is 7.5%.
For houses, apartments or other property valued above CI$400,000, but not exceeding CI$500,000, the first time Caymanian buyer pays Stamp Duty at a rate of 2%.
Stamp duty exemptions do not apply to overseas first time buyers
Duty is charged on loan amounts of less than CI$300,000 at 1% and on larger mortgages at 1.5% of the loan amount.
The above information is provided for indicative purposes only and in order to procure a definitive quote you should contact your lawyer setting out the relevant circumstances. This firm accepts no responsibility for the information provided.
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