Cayman Islands: Bill seeks to empower first-time Caymanian property buyers
- Legislators will consider and vote on the Stamp Duty (Amendment) Bill, 2018 to be introduced in the House in the November Meeting.
- The Bill also seeks to close a loop hole in the present law that some property developers use to reduce stamp duty charges.
- increase by $50,000 the current stamp duty concession threshold from $100,000 to $150,000 with respect to Caymanians making their first property purchase, in the form of raw land ; this means they will not pay any stamp duty for purchasing such property priced up to $150,000;
- raise by $100,000 the threshold from $300,000 to $400,000 for the first time purchase or construction of an apartment, condo or house by Caymanians; this means they are exempt from paying Government stamp duty for acquisitions up to $400,000;
- Caymanians making their first property purchase as raw land over $150,000 but less than $200,000 will also get a concession – they will pay only 2% stamp duty on such property;
- similarly, for Caymanians making their first purchase of property that has a building on it, with a value that is greater than $400,000 but less than $500,000, stamp duty is payable at 2%; and
- the bill also introduces concessions for two or more Caymanians (but not more than 10) buying property for the first time: if the value of the property with a building on it does not exceed $500,000, then there is no stamp duty to pay; and if property being purchased is raw land with a value under $300,000, then there is again no stamp duty to pay. The bill also specifies a 2% rate of stamp duty for acquisitions with built-up property that do not exceed $600,000 and $350,000 for raw land.
Published October 25, 2018
Join the discussion — please keep to our Community Guidelines.