Cayman Government Extends Lower Stamp Duty For Six Months

by Amanda Banks, Tax-News.com, London

20 May 2003

The Cayman Islands real estate sector received a boost recently with the news that the government has decided to extend the reduced rate of stamp duty on property transfers for another six months.

The lower rate of stamp duty was introduced in November 2001 and was primarily aimed at stimulating the construction and real estate sectors during a quite severe economic downturn. Levies were reduced from between 7.5% and 9% to a flat rate of 5%. The measure has especially helped those purchasing more expensive properties and many estimate sums of $100,000 have been saved as a result of the reduced rate.

A fifty per cent reduction on building permit and infrastructure impact fees has also been extended. This measure has been running concurrently with the lower stamp duty regime.

Commenting on the government's decision, the Minister of Planning the Hon. Linford Pierson said: "From all accounts, it's been working," adding "this government recognizes the need for this incentive."

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