Cayman Government Extends Reduced Stamp Duty Rates

by Amanda Banks, Tax-News.com, London

20 November 2003

The Cayman Islands property sector has received a fresh boost from the recent news that the government is extending the reduced rate of stamp duty beyond the November deadline for a further two months.

The lower rate of stamp duty was introduced in November 2001 and was aimed at stimulating the construction and real estate sector. 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 industry observers estimate that sums of $100,000 have been saved as a result of the reduced rate.

"We are all grateful for any kind of extension, as there was a huge demand leading up to the deadline. The reduction in stamp duty has had a significant positive effect on our business over the last year," Billy Cuthbert of the Cayman Islands Real Estate Brokers Association commented, according to Cayman Net News.

Currently, it is unclear whether the government will extend the deadline still further when it expires, switch back to the previous rates immediately in the New Year, or gradually raise rates back to their former levels, as favoured by real estate practitioners.

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