This article was written by RE/MAX.
Located just a one hour flight away from Florida, the Cayman Islands is a popular tourist destination for people looking to get away from it all. But this paradise is also an ideal location for real estate investment. Grand Cayman real estate has never been hotter, as investors are realizing the many reasons why it is such a potentially lucrative opportunity.
One of the main reasons that investing in Cayman Islands real estate is such a smart move is because of the lack of direct taxes. The Cayman Islands does not have income or property taxes, making it significantly more affordable to live there or own and maintain investment property.
In addition, unlike many other territories or countries in the Caribbean, there are no legal restrictions for foreign real estate ownership in the Cayman Islands. All property is registered with the local government, eliminating many of the potential hassles for foreign investors. The only requirement for purchasing real estate in the Cayman Islands is paying a one-time “stamp duty” fee of 7.5 percent.
Another significant advantage in investing in property in the Cayman Islands is the diversity of real estate options. Foreign investors can purchase Grand Cayman luxury property on the beach or become partial investors in larger real estate developments. With a growing workforce coming to the Cayman Islands to work in the burgeoning financial sector, there is an increasing need for long-term housing.
Along with purchasing new or existing property, investors also might want to consider purchasing undeveloped parcels of land. Cayman Islands regulations do not require immediate development of real estate. This allows investors to buy land and either build on it or wait to sell it at a higher price.