THE PROPERTY
Although Cayman’s economy is based primarily on the twin pillars of the territory’s successful offshore financial services industry and its tourism product, property is also a key economic generator and a spin-off from the tourism sector.
There are no legal restrictions of any kind to foreign ownership of property in Cayman, which makes it very attractive to overseas investors. A real estate title can be held in one name, a group of people or by a company or corporation. Title to property is granted and guaranteed by the Cayman Islands Government protecting ownership.
These attractive factors, in addition to no annual property tax, no inheritance tax, political stability, favorable landlord and tenancy rules, a beautiful natural environment and many local attractions have facilitated the growth of a significant and buoyant property market.
3.2 Tourism-fueled Economy
The territory has enjoyed stable economic prosperity for many years, with steady GDP growth being fuelled by luxury tourism, attracted to the clean, friendly and safe ambiance of all three islands.
The Tourism industry is responsible for more than 70% of Caymans’ GDP. This is fueled by the islands vast unspoiled beaches, duty-free shopping, Scuba diving and deep-sea fishing, which attracted figures in the region of 1.8 million air and cruise visitors in 2008 alone.
Its crystal-clear waters and unspoiled reefs make the Caymans one of the world’s most revered Scuba diving destinations, with Little Cayman being listed as one of the best diving sites in the world.
The Cayman Islands are also the world leader in the registration of mega-yachts, and a major player in the registration of other vessels, thus underlying its proven capability to compete on an international level.
3.3 Financial Services Industry
The Cayman Islands is the fifth-largest banking centre in the world with $1.5 trillion in banking liabilities and a concentration of top-quality service providers such as UBS and Goldman Sachs.
They are home to 278 banks (as of June 2008), conducting banking activities at both domestic and international levels.
The most prominent sectors are banking, hedge fund formation & investment, structured finance & securitization, captive insurance and general corporate activities.
3.4 Political Stability
The success of the Cayman Islands originates from a long-standing stable government, operating British common law.
The Caymans have cultivated a robust platform to foster continued successful economic growth, which in turn, will perpetually attract investors, multinational organizations and skilled personnel.
3.5 Commitment from the Government
The Cayman Administration have committed to bolstering long term growth of economic output with continued investment in infrastructural enhancements.
Their endeavors to promote the international significance of the island is demonstrated by their current airport expansion program, in which terminal capacity will be tripled. This will support the addition of new air routes into the islands from north-eastern locations such as Chicago, traditionally considered as one of the top five source markets for US visitors.
Further initiatives aimed at boosting stay-over arrivals include a new promotional campaign by the Department of Tourism to target secondary markets such as Canada and the UK under the slogan of ‘Three islands, one idyllic destination’.
The government has also established the Cayman Island Investment Bureau (CIIB), the territory’s dedicated investment promotion agency with a mandate to facilitate and stimulate long term investments in all sectors of the economy.
3.6 Population Growth
With a current population of 57,000 residents, the CIA World Factbook lists the Cayman Islands as the 34th fastest growing population in the world at 2.39% per annum. However, the Cayman Economics and Statistics report for 2008 demonstrates a greater level of growth of 3.5% against the same period in 2007. Comparatively, the UAE is the highest at 3.69%, whilst the UK is listed at number 175 with a growth rate of 0.28% per year.
3.7 Construction and Real Estate
According to the Cayman Economics and Statistics office annual economic report 2008, construction recorded positive growth in 2008, to a value of $502.3million, representing a 12.5% increase on the previous year. Furthermore, despite a global decline, the number of transferred freehold properties rose by 4.5% in this year, to a value of $558.1million
3.8 Tax Residency
High-net-worth investors are encouraged to invest in the Cayman islands, with a view to achieving permanent residential status in order to take advantage of the tax benefits this may present. Application for residency is available via two different channels, either as Wealthy Retirees or Entrepreneur/Investors.
3.9 Summary
With the 10th most valued currency in the world, the highest standard of living in the Caribbean, its own stock exchange, no direct taxation and a distinguished financial reputation, the Caymans’ are an obvious choice in this new era of intelligent property investing.
* No local taxes - there is no income tax, no inheritance tax, no non-residents tax, capital gains or other similar taxes in the Cayman Islands
* Stability and Security - the Cayman Islands has a stable government, sophisticated infrastructure and a strong economy based on international banking and tourism
* Investment freedom - no restrictions on investment purchases
* Comprehensive investment services and opportunities
* Increasing population growth and commitment to securing increased tourism revenue
4.2 Developing your plot
Owners can maximize the real estate potential of their land by developing a villa for personal use, rental returns or simply to sell on completion.
A choice of Architects, Surveyors, Engineering and Project Management services, and an extensive choice of internationally recognized General Contractors are available to facilitate a straightforward and bespoke service.
4.3 Realizing your investment
As populations grow, the challenge of balancing the increasing need for housing with the growing importance of environmental and heritage concerns means that land with development or building potential can provide increasingly strong returns for investors.
Undeveloped, these building plots offer two exit strategies; the first, taking advantage of the price increase that will be associated with the completion of infrastructure components, an undertaking that has been guaranteed by the current land owner.
The second, longer term scenario, will harness the combined raised value facilitated by both infrastructure and international inflationary driven land value increase.
ABOUT THE LOCAL AREA
In the sparkling waters of the Caribbean Sea lies a unique offshore banking haven that boasts an idyllic combination of British common law, tax privacy & freedom, and an enviable tropical marine climate.
The Cayman Islands foster one of the wealthiest and most privileged populations in the world, with the highest output per capita and amongst the finest standards of living on earth.
They remain an ultra-elite island destination with the 10th highest valued currency in the world, their own stock exchange, the absence of direct taxation and a distinguished financial reputation.
The Cayman Islands offer a realistic and durable real estate investment strategy with the following attractive attributes:
* No local taxes - there are no income tax, inheritance tax, non-residents tax, capital gains or other similar taxes in the Cayman Islands
* Stability and Security - the Cayman Islands have a stable government, sophisticated infrastructure and a strong economy based on international banking and tourism
* British Territory – operating British Common Law
* Investment freedom - no restrictions on investment purchases
* Comprehensive investment services and opportunities
2.1 Location
The Cayman Islands comprise of Grand Cayman, Cayman Brac, and Little Cayman. They lie south of Cuba and north west of Jamaica, time zone GMT -5.
Grand Cayman is by far the biggest with an area of 76 square miles. The two “Sister Islands” of Cayman Brac and Little Cayman are located about 80 miles east of Grand Cayman and have areas of 14 square miles and 10 square miles respectively.
All three islands are surrounded by healthy coral reefs, which lie at the top of dramatic walls and drop-off’s close to shore, creating ideal conditions for diving and sport fishing.
2.2 History
Christopher Columbus discovered the Caymans in 1503. They remained uninhabited until well after the 1670 acquisition of the islands by the British Crown, which has held dominion over the three islands ever since.
Its superior diving conditions put the Cayman Islands on the international tourist map in the early 1950s. Despite its diminutive size, Little Cayman quickly established itself as a top diving site. Bloody Bay Marine Park has some of the best wall diving anywhere in the world.
During the next decade, Caymanians began to draw up the tax structure that would make Grand Cayman an economic powerhouse and at the same time put in place an infrastructure that has made it the undisputed capital of Caribbean tourism.
2.3 Money
With no direct taxation, the islands are a thriving offshore financial centre. More than 87,000 companies were registered in the Cayman Islands as of 2008, including almost 300 banks, 800 insurers, and 5,000 mutual funds. A stock exchange was opened in 1997. The Cayman Islands have more registered businesses than they have people.
With an average income of around $42,000, Caymanians enjoy the highest standard of living in the Caribbean, indeed, one of the highest in the world. The official currency is the Cayman Islands dollar (CI$) and permanently fixed at an exchange rate of CI$0.80 to US$1 (US$1 equals CI$1.25).
2.4 Travel
Several airlines serve the Islands, which are just over one hour south of Miami. These include the national airline Cayman Airways, American Airlines, USAIR, Northwest, Delta, Continental, Air Canada, British Airways, and Air Jamaica.
The national carrier serves Miami, Houston, Tampa, Orlando, Fort Lauderdale, Boston, Chicago; Kingston and Montego Bay, Jamaica; Havana, Cuba; and Cayman Brac and Little Cayman. Direct links with other US gateways such as Atlanta, New York and Charlotte are provided by the US carriers serving the Islands.
Regular, direct scheduled flights departing from London Heathrow to Grand Cayman’s Robert Owen International Airport are available with British Airways.
2.5 Climate
The Cayman Islands boast an exotic, tropical climate throughout the year, with trade winds moderating high temperatures which range from 25oC in winter to approximately 30oC in summer. High season runs from December to April where temperatures are generally cooler and more favorable for tourism.
The rainy season is typically from May to October with short burst showers. Strict building codes are in place to withstand hurricanes. The government has appropriate measures in place to prepare for such conditions and offers a hurricane protection policy guarantee in order to maintain tourism growth.
Charles oliver is a bespoke property sourcing consultancy, therefore if you can't find exactly what you are looking for on our website, we would be thrilled to source something to your exact requirements.