Tax on property income in Cayman Is.
INDIVIDUAL TAXATION
There are no income taxes and capital gains taxes in the Cayman Islands. However, stamp duties are payable on most legal transactions, including leasing and selling real property.
RENTAL INCOME
There are no income taxes in the Cayman Islands. Rental income is subject to stamp duties on leases (property and land), and tourist accommodation tax.
Stamp Duty on Lease of Property
Stamp duty is payable on leases of real property.
STAMP DUTY ON LEASE OF PROPERTY |
|
| LEASE AGREEMENT | |
| Up to 5 years | 5% on average annual rent |
| 5 years - 10 years | 10% on average annual rent |
| 10 years - 30 years | 20% on average annual rent |
| Over 30 years | 7.50% on the full value (gross amount) |
| Source: Global Property Guide | |
Stamp Duty on Lease of Land
Stamp duty is levied at 5% on the value of the property if the term exceeds 30 years. If the lease term is less than 30 years, stamp duty is levied at 5% on the average annual rent.
Tourist Accommodation Tax
Owners leasing properties to tourists are liable pay to tourist accommodation tax levied at 10% on the gross rent without any deductions. For timeshare properties, the daily charge is US$10 for each occupied room.
CAPITAL GAINS
No capital gains tax is levied in the Cayman Islands. Property sales are subject to stamp duties on transfers of properties.
Stamp Duty on Transfer of Property
Stamp duty is payable on conveyance on sale of real property at a flat rate of 7.50%.
PROPERTY TAX
No property taxes are levied in the Cayman Islands.