(CNS): The Cayman Islands Government has changed the Stamp Duty Regulations, paving the way to reduce the amount of stamp duty Caymanians will pay if they buy property in and around Seven Mile Beach. A private member’s motion by Opposition Leader Joey Hew that passed through parliament last year made duty concession available to local buyers for first and second homes in most parts of the islands. These changes extend that to all areas across the three islands.
Premier Juliana O’Connor-Connolly presented the change to the parliament Friday, saying the higher duty had been an impediment to locals buying in the area.
The change also increases the threshold before any duty kicks in for Caymanians buying their first homes from $400,000 — considered to be out of line given the rapidly increasing cost of a home — to $550,000, or $600,000 for couples or small groups of Caymanians. Non-Caymanians must continue to pay 7.5% for all property.
The new regulations bring the duty rates for homes and land in the Seven Mile Beach strip in line with all other areas of the island for locals, so there will be no stamp duty for Caymanian buyers for a home valued at $550,000 or less, or land with no building valued at $250,000 or less.
Caymanians buying homes valued at more than $550,00 will be charged 3.75% of the difference between that value and $550,000.
Caymanians will be charged stamp duty fees of 3.75% for a second home valued at $600,000 or less or a second lot of land valued at $300,00 or less. Couples and small groups of Caymanians will pay 3.75% on a second property valued at $700,000 or less and land worth $550,000 or less.
Caymanians are currently charged the lower stamp duty rates everywhere on all three islands except for the Seven Mile Beach corridor and some parts of George Town. However, when the regulations take full effect in the next three weeks, first-time Caymanian buyers will be able to buy property without paying stamp duty on it anywhere on the islands if it is $550,000 or less.
