What stamp duty is
Stamp duty is a government charge on the transfer of land and property in the Cayman Islands. It is calculated on the purchase price (or the market value, if higher) and paid when the transfer is registered at the Lands & Survey Department. Your lender will not finance it: it comes out of the cash you bring to closing, alongside your deposit.
The standard rate is 7.5% of the consideration, or the market value, whichever is higher (Stamp Duty Act (2019 Revision), Schedule, Conveyance or Transfer). On a CI$650,000 home that is CI$48,750; for most buyers the single largest cost after the deposit itself.
If you are borrowing, a second, smaller duty applies to the mortgage itself when the lender’s charge is registered: 1% of the sum secured up to CI$300,000, or 1.5% of the whole sum when it is more than CI$300,000. It is in the closing costs checklist.
Who pays less: Caymanian buyers
A Caymanian gets two opportunities to claim a stamp duty concession: one on a first property and one on a second. The concession is worked out on the higher of the purchase price and the market value, and the bands differ for raw land and developed residential property, and for a single buyer versus a group of two to ten Caymanians buying together.
First property
| Buyer | Property | 0% duty up to | 3.75% on the part between | 7.5% above |
|---|---|---|---|---|
| Single Caymanian | Raw land | CI$250,000 | CI$250,000 to CI$350,000 | CI$350,000 |
| Single Caymanian | Developed residential | CI$550,000 | CI$550,000 to CI$650,000 | CI$650,000 |
| Group of 2-10 Caymanians | Raw land | CI$450,000 | CI$450,000 to CI$550,000 | CI$550,000 |
| Group of 2-10 Caymanians | Developed residential | CI$600,000 | CI$600,000 to CI$700,000 | CI$700,000 |
Second property
On a second property the reduced rate of 3.75% applies to the whole value, up to a limit; above it the full 7.5% is payable with no concession.
| Buyer | Property | 3.75% on the whole value up to |
|---|---|---|
| Single Caymanian | Raw land | CI$300,000 |
| Single Caymanian | Developed residential | CI$600,000 |
| Group of 2-10 Caymanians | Raw land | CI$550,000 |
| Group of 2-10 Caymanians | Developed residential | CI$700,000 |
Source: Ministry of Finance, Application for Stamp Duty Concession: Caymanian Property Purchasers (form v16.4.26). The bands printed in the Act’s 2019 Revision (CI$400,000 / CI$500,000 for a single buyer of developed property) have since been raised; the current form prevails. Bands change with the budget cycle; check the current form before you rely on a figure.
The conditions
- Stamp Duty (Rates of Duty) (No. 2) Regulations, 2025, SL 63 of 2025, in force 1 January 2026: the 7.5% and 10% rates and the CI$2,000,000 line, the concession bands in paragraphs 10, 11, 11A and 11B, and the rates for a linked transaction in a development scheme. Anything executed before that date keeps the rate that applied then.
- A single applicant qualifies if one spouse is Caymanian and has not already used that opportunity; a group of two to ten qualifies only if both spouses in any marriage are Caymanian.
- You are not eligible if you have already bought two or more properties in the Cayman Islands, or owned more than half of a company that has.
- Bought one property before gaining Caymanian status? You can still claim on a second one. Bought two or more before? No concession.
- A five-year restriction is entered on the Land Register. Selling or transferring within five years needs the Minister for Finance's permission, and a prorated share of the duty you saved becomes payable.
How to apply
- Every applicant completes their own application form and a separate sworn affidavit, signed before a Notary Public or Justice of the Peace.
- Attach proof of Caymanian status (birth certificate or passport page for those born here; a certified certificate of status for everyone else), a certified marriage or civil-partnership certificate if applying together, the certified offer or purchase agreement, and a valuation report less than six months old from an approved surveyor (or a developer's letter for an unbuilt property).
- Email everything to MOF@GOV.KY; no hard copies needed. Processing normally takes 10-15 business days, so apply as soon as your offer is accepted, not at closing.
How to budget for it
- Start from the price, not the loan. Duty is on the full purchase price, so a bigger deposit does not reduce it.
- Add it to your cash-at-closing. Deposit + stamp duty + legal and valuation fees is the figure you need in the bank on the day.
- Check the concession early. If you are a first-time Caymanian buyer, the saving can be tens of thousands; it changes which homes are within reach.
- Ask about the valuation. If the Government values the property above the price you paid, duty is charged on the higher figure.
Common questions
Can I add stamp duty to my mortgage?
Not in the normal course. Lenders advance against the property's value; duty is a transfer cost, paid in cash at registration. Some buyers fund it from a separate personal loan, which carries its own rate and term.
I used the concession once. Can I use it again?
Yes: a Caymanian has two opportunities, one on a first property and one on a second. The second-property concession is the flat 3.75% up to the limits in the table above; there is no 0% band the second time.
What happens if I sell within five years?
The Land Register carries a five-year restriction from the date of transfer. You need the Minister for Finance's permission to transfer during that period, and a prorated share of the duty you were excused becomes payable.
The valuation came in higher than my price. Which one counts?
The higher of the two. Both the standard duty and the concession bands are assessed on the greater of market value and purchase price, which is why a valuation report less than six months old is part of the application.