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Click on the link to jump to that section of the page. THE REAL ESTATE PICTURE LIVING IN CAYMAN - WHERE ARE WE? IMMIGRATION AND RESIDENCY THE REAL ESTATE PICTUREThe real estate market here is a buoyant one. It is uniquely attractive to those looking for an overseas holiday, get-away, or a retirement abode. To foreign investors, it can offer a solid capital return on their investment, as well as the chance to own a secluded piece of "paradise". Cayman attracts not only Fortune 500 corporations, but all types of investors as well. THE CAYMAN ISLANDS REAL ESTATE BROKER'S ASSOCIATIONA regulatory broker's association that guides its members under strict rules and regulations. Consisting of an MLS service similar to the US and Canada, the members have access to every listing currently on the market. This makes it easier for prospective buyers as it enables them to work with one Agent island-wide and still be assured of viewing all available properties of interest. CIREBA also publish a magazine showcasing the majority of properties currently on the market. This magazine is published three times a year and can be obtained free of charge locally or mailed by pre-paid subscription. OwnershipThere are no legal restrictions of any kind on foreign ownership of property. A title to real estate can be held in one or more names of individuals or in a corporation. A title is granted and guaranteed by the Cayman Islands Government, thus ensuring and protecting property ownership. Further, there are no imposed requirements to develop land (excluding subdivisions which do have Covenants) within a stipulated time period; consequently, parcels can be held indefinitely, with little or no expense, for future use or speculation. Note: there is no yearly property tax in Cayman. Land RecordationCayman's land registry system is well-organized and an up-to-date system, which guarantees title as all deeds are registered in one location. The land transfer process is expeditious and secure. This allows one to confirm history on a particular property, including restrictions or easements. Professional ServicesFull legal and financial services are available. Additionally, there are many highly qualified architects, engineers, surveyors and building contractors. Building materials are readily available; including locally made cement block and ready-mixed concrete. Special materials and products can be shipped efficiently from the US. MortgagesA number of banks and financial institutions offer mortgage packages. The cost of money here is based on the floating New York prime as quoted by Citibank. Some banks offer between 10-35% down plus closing costs for loans on condos and residences. The loan duration is usually 10 to 15 years, however some lenders offer 20. Most do not charge pre-payment penalties. Exchange ControlsThere are no exchange controls. Funds and financial assets in any currency or gold can be transferred freely into and out of the country. The official currency is the CI dollar; however, the US dollar, with a fixed rate of exchange, is widely used in local finance and commerce. Banks generally buy US$1.00 at CI$0.82 and sell US$1.00 at CI$0.84. For retailers/hotels, etc. US$1.00 = CI$0.80. TelecommunicationsCayman has a well-developed and efficient infrastructure. With fully digital network and fiber optic cables, our telecommunications system provides reliable links with the rest of the world, thus fulfilling the business and financial community's expanding needs. Cayman is ranked among the ten top countries for highest penetration of cellular customers. Condominium/Strata PropertyOn purchase of a condominium apartment, the owner becomes a member of the general owners association, known as the Strata Corporation, normally run by an executive committee of several owners elected by the general membership at the AGM (annual general meeting). Many condominium developments also have resident salaried managers employed by the Strata Corporation. Periodic payment of Strata Corporation dues covers maintenance of common areas, building insurance and other expenses. All types of real estate, including condominium apartments, may be leased on a long- or short-term basis. Any lease for a period of over two years is required to be registered at the Land Registry. Stamp DutyThere is no direct form of taxation levied within the Islands, aside from a one-time "stamp duty" on real estate at time of purchase with is either 9% (Seven Mile Beach corridor due to high infrastructure) or 7.5%. Essentially, it is a government assessment on actual real estate at the time ownership transfers. Note: Chattels (furnishings) are deducted from the sales price before calculating stamp duty. Further, there is no property tax, no income tax, no capital gains tax and no inheritance tax. Note: Government has temporarily reduced stamp duty to 5% Islands wide. Building ProceduresAs you know, one of the major criteria for determining real estate value is "location, location, location". Building contractors and developers offer quality products for those choosing to buy raw land and design their own dream home or for those buying into a developer's project. Cayman's Building Control Department follows stringent codes for approving and monitoring on-site construction. The relevant Government inspectorates similarly use codes for plumbing and electrical installations. To ensure adequate structural protection against hurricane threats, contractors here use similar building codes as in South Florida. (Note: construction costs in Cayman will reflect the charges incurred in shipping materials to the Island, as well as the import duty on such; consequently building costs will be higher than those in the US.) Banking InformationHighly professional banking and investment services are readily available. The tight Monetary Authority guidelines and regulations are in compliance with the OECD's (Organization for Economic Development and Cooperation) requirements. And a "know your customer" policy is stringently practiced. Although there are approximately 500 banks in Grand Cayman, only a few are licensed to do retail business. The major banks with facilities to offer full service banking include: Barclays' Bank, Bank of Butterfield, Cayman National Bank, CIBC Banks & Trust, Royal Bank of Canada and the Bank of Nova Scotia. All are located in or near George Town. Travelers cheques are accepted at most places in Cayman, as are major credit cards. ATM machines are conveniently located Island wide. LIVING IN CAYMAN - WHERE ARE WE?The Cayman Islands are situated approximately 480 miles south of Miami,
just a little over an hour by air. Cayman consists of three islands: Grand
Cayman, the most populated; Little Cayman, the smallest and least developed;
and Cayman Brac, known for its spectacular spine-like bluff. Little Cayman
and Cayman Brac are located about 90 miles from Grand Cayman. All three
islands are coral outcroppings of an undersea mountain range, which extends
from Cuba to Belize. The EconomyThe main industries are financial center operations, tourism, and real estate sales and development. Service industries, such as construction, jewelry manufacture, hotel and restaurant operation, retail trades, and scuba diving and boat rentals are ancillary to the main industries. The Cayman Islands Government has never depended on the British Government for its recurrent budget, and all aid for capital projects has ceased for the last 15 or more years. Business/LicensesA trade and business license is generally required to carry on a local trade or business. Unless 60% of the ownership and the number of directors are holders of Caymanian status, a LCCL (local companies control license) will also be required. Cost Of LivingThe cost of living is generally higher than in the United States or the United Kingdom, as most commodities are imported and have to bear the cost of freight and insurance, plus customs duty if payable. This is partly offset by the absence of income and property taxes, but monthly rent on apartments and houses in prime areas are usually quite a bit higher than for comparable properties in the US or UK. Most are rented furnished. Gas (petrol) is less expensive than in Britain, though higher than in the US. The cost of electricity (110 volt, 60 cycle) and water (in properties using piped desalinated water, about 70% of Grand Cayman) can also be higher than a resident of the UK or US are accustomed to. The Government's Economic and Statistics Office keeps records of prices. The office assesses the cost of living increase for 1997 to be 2.7%. EducationThere are 17 government schools and 10 private schools in the Cayman Islands, offering a high standard of education with both the US and English curriculum available. The Community College is a tertiary level education institution offering Associate Degrees. The International College of the Cayman Islands (ICCI) also offers various vocational courses and Degree programs. Driving License And Rental CarsOn production of a valid driving license, the police or a car hire firm will issue a local permit valid for six months at a cost of CI$4 (US$5). In the Cayman Islands we drive on the left side of the road. Several large rental companies operate in the Cayman Islands: Hertz, Cico/Avis, and Budget. There are also smaller reputable local companies. Information is available at the airport and hotels. TippingThe usual tip is 15% (check your bills whether included or not). Government room tax (10%) and hotel/condominium gratuity (10%) are automatically added to accommodation bills. Bring Your PetAnyone intending to bring a family pet or other animal into the islands must direct these inquiries to the Department of Agriculture, Tel: (345) 947 3090 Fax: (345) 947 2634 and email: agrivet@candw.ky. Importation of dogs and cats require an import permit or a valid animal passport issued by the Department of Agriculture, and an official health certificate issued by a government-employed or accredited veterinary inspector in the country of origin. Application forms for permits are available from the Agriculture Department. Applications should be submitted well in advance of travel and must be accompanied by a non-refundable fee of CI$50 (US$61) in the form of a bank draft or an international money order, payable to the Cayman Islands Government. Importing Fruit Or PlantsAnyone intending to bring a family pet or other animal into the islands must direct these inquiries to the Department of Agriculture, Tel: (345) 947 3090 Fax: (345) 947 2634 and email: agrivet@candw.ky. Importation of dogs and cats require an import permit or a valid animal passport issued by the Department of Agriculture, and an official health certificate issued by a government-employed or accredited veterinary inspector in the country of origin. Application forms for permits are available from the Agriculture Department. Applications should be submitted well in advance of travel and must be accompanied by a non-refundable fee of CI$50 (US$61) in the form of a bank draft or an international money order, payable to the Cayman Islands Government. ShoppingThe range of food items, household goods, linens, clothing and other items
available in the Islands is likely to surprise the newcomer. There is regular
cargo shipping service to Grand Cayman from Miami, Tampa, Central America
and Jamaica, with service from Miami being the most frequent. Cayman Brac
also has cargo-shipping service from Grand Cayman every week. Several large
hardware outlets carry a wide range of items; and other outlets supply
appliances, furniture, linens, photographic equipment and supplies, sporting
goods, gift items, plants and nursery items, books and magazines, hobby
supplies, radios, televisions, video recorders and other electronic equipment,
prescription and non-prescription pharmacy items, building supplies and
most other items needed for everyday living. To give an idea of price levels
to be expected, the following is a selection from the Economics and Statistics
Office list in March 1988: IMMIGRATION AND RESIDENCYVisitors may enter and reside in Cayman for a period of up to 6 months, but a visitor is not allowed to work during his/her stay here. All non-Caymanians that wish to work in the Islands must apply for a work permit. The application process can be somewhat lengthy. It is advisable to talk with an Island attorney regarding the permit process, as well as residency. Government encourages people of independent means to apply for Island residency. It requires an ultimate investment in a property or a local business of at least US$180,000.00 dollars. Additionally, there is a fee of CI$15,000.00 (US$18,000 dollars), (includes spouse and children under 18). Applying for permanent residency is a two-fold process. Once granted, it allows unrestricted time in the Islands and can possibly benefit the holder from a tax standpoint in his/her home country. Residential Statues in CaymanAnyone wishing to reside in Cayman without engaging in employment of any kind may apply to the Chief Immigration Officer for consideration. There are two stages to the procedure. Initial residency will be granted only if it appears that the applicant will qualify for permanent residency. Initial ResidencyApplications are granted for a six-month period but can be renewed providing the Authorities are satisfied that an application for permanent residency has been made or is forthcoming. Basically, the prospective resident must show that he/she does not need to work in Cayman to support himself or his dependents, and that he/she is of sound mind and in good health. Property need not be identified or acquired during this initial phase of the procedure. In addition to the application form, the following is required:
The completed applications including the above documentation are sent to: Permanent ResidencyThe second step is to apply for the initial residency to be made permanent. It is at this stage that an applicant is expected to have met the necessary property purchase or investment requirement. Once a person has been granted permanent residency, no further permission is necessary to enter or remain in the Cayman Islands. Note: permanent residency can be withdrawn if a person resides out of Cayman for a continuous period of one or more years. Permanent Residency With The Right To WorkA permanent resident may, after two years of continuous residence, apply for a work permit. The Immigration Board will take into consideration the applicant's standing in the community, as well as any contributions he/she has made in terms of participation to the betterment of the community. Note: permission to engage in gainful employment is usually restricted to a specific occupation; additionally there is a required annual fee. For further information concerning any of the above, please contact the Department of Immigration, PO Box 1098GT, Grand Cayman, Cayman Islands B.W.I. ApplicationsApplications should be made on the prescribed forms and are available from: Important NoticeThe information provided is for guidance, and decisions will be made on each individual case by the Immigration authorities acting under the powers granted by the Immigration Law, 1992, amendments thereto, regulations made there under, and any instructions issued under the provisions of the law. |
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The Chief Immigration Officer