When I was interviewed by Fortune Magazine about my foreign real estate investments, I pointed out that, unlike Mexico, my investment in Cayman Islands Real Estate went well. That is partly because of the tax environment, partly because of the pro-landlord landlord-tenant laws, and partly because of strong rule of law.
I have been a landlord in Grand Cayman since 2008. Other than one bad property manager, my investment in Grand Cayman has been very good to me.
Cayman Islands Real Estate for Sale: Explore the Best Areas in Grand Cayman
When I purchased real estate in Grand Cayman, Hurricane Ivan was relatively fresh in everyone’s memory. On September 11, 2004, Hurricane Ivan ravaged Grand Cayman for 36 hours with category 5 winds, rains, and storm surge. When trying to decide where on the island I should buy, I searched for maps showing which areas were hardest hit by Ivan and which areas were not.
Information about the damage caused in Grand Cayman by Hurricane Ivan can be found here: https://www.gov.ky/content/published/api/v1.1/assets/CONT2CC68B6BC80646069AE743E615103F5D/native?cb=_cache_4b44&download=true&channelToken=c915417e96ad49e2bcda2e4d22158c40
When considering areas, also be aware that some areas have mostly leased land, like in Hawaii. Real estate isn’t much of an investment if you don’t own the land.
My research led me to focus on Seven Mile Beach as being the most in-demand area for real estate, followed by George Town and South Sound. West Bay is somewhat less desirable as is any area east of the Grand Harbor roundabout, due to distance and traffic jams.
Best Areas to Buy Real Estate in Grand Cayman
Seven Mile Beach
Stretching along the island’s west coast, the Seven Mile beach features sugar-soft, white sands and turquoise waters. This is the area where the high end hotel resorts are located, all along the shore.
Beautiful reefs are just offshore for snorkeling fans. Those who prefer activities can find jetskiing, parasailing, and other watersports in this area.
Camana Bay
Camana Bay is an area east of Seven Mile Beach with many shops and restaurants in a New Urbanist Town Centre. The lively Town Centre has sporting facilities, and picturesque waterfront views. You an also reserve a boat slip there.
Camana bay also has the Islands’ only cinema. The Camana Bay Observation Tower provides panoramic views. Be aware that many properties in this area are leasehold properties, where you do not own the real estate.
George Town
George Town, the vibrant capital of the Cayman Islands, is a prime location for those seeking Cayman real estate for sale. As the island’s business and administrative hub, it features key landmarks like the Legislative Assembly and a bustling harbor, where cruise ships dock alongside cargo ships. This area is a hotspot for both locals and visitors, with a wide range of duty-free shopping options, including jewelry shops, local artisans, and markets. The proximity to George Town adds great value for renters, making it an ideal location for Cayman real estate investment. Additionally, the Cayman Islands’ National Museum offers a taste of the island’s culture and history, attracting tourists and enhancing the area’s appeal for property buyers.
West Bay
For those interested in affordable Cayman real estate for sale, West Bay offers a more local atmosphere and is known for lower-priced properties in Grand Cayman. Located on the northwest coast, West Bay is home to stunning natural beauty, including the famous Hell rock formations. While it is more affordable, it is important to note that West Bay has experienced occasional gang-related activity. Despite this, the area offers a peaceful environment and its own unique charm, making it an attractive option for those looking for budget-friendly Cayman real estate.
North Side
The North Side of Grand Cayman provides an even quieter, more secluded living experience, perfect for buyers seeking lower-cost Cayman real estate for sale. This area is located farther from the bustling George Town and offers a serene environment with limited commercial activity, making it ideal for those who value peace and privacy.
South Sound
South Sound, just south of George Town, is a highly sought-after area for Cayman real estate for sale due to its prime location. With its proximity to top schools, George Town, and the water, South Sound is a popular neighborhood for families and professionals alike. The area is also home to many new real estate developments, making it a strong contender for those looking to invest in Cayman real estate. As a bonus, residents enjoy easy access to the best of both worlds—quiet living and close proximity to the heart of Grand Cayman.
Savannah
For affordable Cayman real estate for sale, Savannah is a great option. Located east of the Grand Harbor roundabout and further inland, Savannah offers a more budget-friendly choice for prospective buyers. The area is less commercialized and has a more local feel, making it a desirable place to call home for those looking for tranquility. The Pedro St. James National Historic Site, known as the “Birthplace of Democracy in the Cayman Islands,” adds cultural value to the area, enhancing its appeal.
East End
East End, located on the far side of the island, is one of the most affordable places for Cayman real estate for sale. Due to its distance from George Town, real estate prices here are lower, and there are fewer stores and restaurants. However, for those seeking solitude, East End offers a peaceful, secluded lifestyle. The pristine Colliers Public Beach is a major attraction for both tourists and residents, known for its excellent snorkeling and natural blowholes. If you’re looking for Cayman real estate in a quiet, off-the-beaten-path location, East End is worth considering.
Explore the Cayman real estate market and find your perfect property in one of these unique and beautiful areas of Grand Cayman. Whether you’re interested in the vibrant heart of George Town or the tranquil retreats of the North Side or East End, there’s a Cayman real estate opportunity for everyone.
Understanding Property Ownership Laws in the Cayman Islands
One of the most attractive features of investing in Cayman Islands real estate for sale is that there are no restrictions on foreign property ownership. While Canada is currently forbidding foreigners from buying real estate and Mexico requires foreigners to use fideicomisos (bank trusts) near the coasts and borders, foreign buyers can purchase property in the Cayman Islands without any limitations on the size or value of the property. Furthermore, the land can be held indefinitely without developing it.
In the Cayman Islands, Cayman Real Estate Ownership Falls into Two Categories:
Freehold
Freehold ownership is the most common type of ownership, giving the owner the right to use and occupy the property indefinitely.
Leasehold
Leasehold is where the owner holds the right to occupy the property for a fixed period. It’s essential to thoroughly understand the type of ownership before investing in Cayman Islands real estate. Investors with experience in buying real estate in Hawaii are familiar with leasehold properties.
Strata Corporation
When purchasing a condominium or other residential or commercial property as part of a strata plan, buyers become part of the Strata Corporation and have voting rights. Canadians are familiar with Stratas. For Americans, think of Stratas as being like homeowner’s associations (HOAs). An executive committee manages a complex that is part of a Strata, and you pay strata fees to cover insurance, maintenance, and reserve funds. The Strata will have Bye-Laws which you should read before buying in a complex. These are the rules you agree to abide by and cover things such as number of pets you are allowed to have in a unit. Buyers should carefully review Strata statements before purchasing, as rules vary.
How Foreign Buyers Can Fund their Cayman Real Estate Investment
Foreign buyers looking to invest in Cayman Islands real estate for sale have several financing options. While international banks are one option, local banks in the Cayman Islands also provide financing options for foreign buyers. However, local banks may require a higher deposit and a lot of paperwork. Working with a reputable lender to ensure you understand the financing options available and the documentation required. One strategy that may be beneficial, versus using Cayman financing, is to refinance your U.S. property and to use the proceeds to buy with cash in Grand Cayman.
Taxes and Fees: What to Expect as a Foreign Property Owner in the Cayman Islands
One of the significant advantages of owning property in the Cayman Islands as a foreign buyer is that there are no annual property taxes. If you rent out your property, there is no income tax to pay in the Cayman Islands (U.S. citizens must always file and pay taxes in the U.S., but at least you don’t have an extra tax return to prepare and file). When you sell, there is no Cayman Islands capital gains taxes to pay.
However, foreign property owners are required to pay stamp duty and transfer fees while purchasing the property. The stamp duty rate is 7.5% of the purchase price, while transfer fees range from 0.1% to 0.5%. This is more than the stamp duty rate charged to local Caymanians. Working with a competent lawyer can help foreign buyers understand the taxes and fees associated with closing on a purchase in the Caymans and can help reduce the risk of any title problems. Be sure to confirm that you are owning and not leasing the land underneath your building, if that is your expectation.
The condo that I purchased was a 2 bedroom, 2 bathroom “first floor” unit (what we would call the second floor in the U.S.). I paid $235,000 USD. Closing costs including a law firm closing fee of $2000, $46.34 for two copies of the land register, $60.98 registration fee, $13,469.48 stamp duty, $60.98 transfers of land, $60.98 power of attorney, $30.49 power of attorney stamp duty, and $91.46 utilities. There was also a small amount for pre-paid strata fees. Other than the lawyer’s fees, the big expense is the stamp duty. On the other hand, there is no property tax. If you keep a property long enough, the amortized stamp duty (effective stamp duty per year) can end up lower than a property tax in the U.S.
Sample Income and Expenses (Cap Rate Calculation)
In 2024, my annual income (in U.S. dollars) was $29,371.50. My annual expenses included $1 million liability plus contents insurance for $786.90 (my strata fees cover the structure of the building), $2349.72 management fees, $9514.16 repairs (including a new central AC unit and complete interior painting, not normal expenses), $519.28 bank fees (the banks there charge a lot of fees), and an HOA (strata) fee of $5197.20. Based on my price paid of $248,250, that works out to a cap rate (or rental yield from rent alone) of about 4.43%. My current value is probably about $400,000. My cap rate would be about 2.75% if I bought the same unit today and had the same tenants.
This is my condo building:
Immigration and Grand Cayman Real Estate
For those interested in Grand Cayman real estate, it’s important to understand the immigration process, as it directly impacts those planning to live and work in the Cayman Islands. The Cayman Islands Immigration Department offers both temporary and full-time work permits for employees seeking employment in Grand Cayman. These permits are typically issued for short-term (3 to 6 months) or long-term (1 to 3 years) durations. After nine years on a work permit, individuals can either apply for permanent residency or go through a “rollover” process, which requires leaving the country for a year.
If you’re planning on making the Cayman Islands your home, purchasing Grand Cayman real estate can be an essential step in your residency application. The immigration system includes multiple residency options for individuals who make a significant investment in Cayman Islands real estate.
Types of Residency and Grand Cayman Real Estate Investment
There are four types of residency certificates available in the Cayman Islands, each requiring a substantial investment in Grand Cayman real estate:
Permanent Residency
Permanent residency allows you to live and work in the Cayman Islands indefinitely. However, obtaining this status requires a significant investment in developed real estate, typically upwards of US$2.4 million in Grand Cayman real estate.
Certificate of Permanent Residency for Persons of Independent Means
This residency certificate is available to those who meet the financial requirements, including purchasing Grand Cayman real estate valued at a minimum of US$2.4 million. Applicants must also pay a one-time fee and possess a clean criminal record.
Residency Certificate (Substantial Business Presence)
For those planning to invest in a business in addition to Grand Cayman real estate, this certificate offers residency based on substantial business activities.
Certificate of Direct Investment
This option also requires a significant investment in Grand Cayman and can be a pathway to permanent residency based on business investment.
Residency Certificates for Grand Cayman Real Estate Buyers
There are specific residency certificates tied to investment amounts in Grand Cayman real estate:
25-Year Residency Certificate
For a minimum investment of CI$1,000,000 (US$1.2 million), including at least CI$500,000 in developed residential real estate, you can secure a 25-year residency certificate. This option does not grant the right to work, but it allows you and your dependents to reside in the Cayman Islands.
Lifetime Permanent Residency
The Lifetime Permanent Residency option requires a minimum investment of CI$2,000,000 (US$2.4 million) in Grand Cayman real estate. This certificate provides the holder and their dependents with a lifetime grant to reside in the islands, and after five years, they may qualify for naturalization and the opportunity to apply for a British Overseas Territories passport.
Grand Cayman Visa for Digital Nomads
If you’re a digital nomad looking to make Grand Cayman your home, the Cayman Islands digital nomad visa offers an ideal solution. This visa allows remote workers to live and work in Grand Cayman for up to two years. To qualify, you must meet specific income requirements and work remotely for a foreign employer, business, or as a freelancer. You are permitted to purchase real estate whether or not you have a visa status in the Cayman Islands.
Grand Cayman Real Estate for Remote Workers
For remote workers seeking long-term stays in Grand Cayman, purchasing Grand Cayman real estate is not mandatory for the digital nomad visa, but it can be a great investment opportunity. With minimal requirements—such as proof of income, health insurance, and a clean criminal record—the Cayman Islands digital nomad visa is one of the easiest ways to live in paradise while working remotely.
Investing in Grand Cayman Real Estate
Whether you are looking to settle permanently or explore the Cayman Islands on a digital nomad visa, investing in Grand Cayman real estate can provide the perfect opportunity to live in one of the most beautiful destinations in the world. With various residency options available and the appeal of a tropical lifestyle, purchasing Grand Cayman real estate can be a rewarding investment. Not only is there strong rule of law, making it much easier to settle disputes than in Latin America, but also landlord-tenant law is not as anti-landlord as it is in jurisdictions like California and New York. It is, in fact, more pro-landlord than the U.S. and Canada, making it reasonably easy to evict non-paying tenants.
Explore Grand Cayman Real Estate Today
From stunning beachfront properties to luxurious condos and residential homes, Grand Cayman real estate offers a range of investment opportunities. Whether you are applying for residency, seeking to buy a vacation home, or making a permanent move, Grand Cayman provides the ideal setting for both work and leisure.
If you would like to see what real estate is available to purchase in the Cayman Islands, you can search the entire Cayman Islands MLS as https://www.cireba.com/
If you might be interested in purchasing real estate in Grand Cayman, please let me introduce you to some of my contacts. You will not pay any extra for this. At most, I’ll ask the real estate agent to pay me a small referral fee. Just click on the contact button or find me on LinkedIn.
