Cayman Islands - Other taxes and levies

Cayman Islands - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in the Cayman Islands? If so, what are the rates for employers and employees? 

None.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in the Cayman Islands?

None.

Real estate tax

Are there real estate taxes in the Cayman Islands?

There is no direct form of real estate tax levied annually within the Cayman Islands. There is only a one-time stamp duty on all transactions involving land at time of purchase.

The stamp duty concession granted by the government to stimulate the real estate and construction industries has been extended.

The rate of stamp duty payable is dependant on the location of the property and whether or not the individual has Caymanian citizenship. There are three stamp duty rates: 4 percent, 6 percent, and 7.5 percent. Reduced rates are also available for first time Caymanian purchasers. In essence, it is a government assessment on actual real estate at the time ownership transfers. Please visit Cayman Land Info for further information.

When calculating the stamp duty, furnishings are deducted from the sale price.

There is 1 percent stamp duty payable on mortgages up to KYD300,000 and 1.5 percent on mortgages above this amount.

Transfers in consideration of natural love and affection, for example, transfers between spouse and spouse or parent and child, may be approved by the financial secretary for payment of minimal stamp duty. 

Additionally, when an individual desires to transfer title to a company of which he/she is the sole beneficial owner, the Financial Secretary may approve a deduction of the full amount of all stamp duty on such transfer.

Sales/VAT tax

Are there sales and/or value-added taxes in the Cayman Islands?

None.

Unemployment tax

Are there unemployment taxes in the Cayman Islands?

None.

Other taxes

Are there additional taxes in the Cayman Islands that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on. 

Import duty, which averages 22 percent, is waived on personal effects taken into the Cayman Islands subject to the provision that the personal effects must be in the Cayman Islands within six months of an individual taking up residence in the Cayman Islands. This waiver does not apply to motor vehicles for which customs duty of between 29.5 percent and 42 percent is payable, based on the book value of the vehicle, plus shipping and insurance charges.

© 2013 KPMG, a Cayman Islands partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

© 2016 KPMG, a Cayman Islands partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative. (“KPMG International”) a Swiss entity. All rights reserved.

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