Big change on the horizon for Cayman’s higher-end buyers: a 10% stamp duty band for properties over CI$2 million

Cayman’s government is rolling out a new stamp duty band: 10% on properties over CI$2,000,000. It sounds dramatic, but in reality it’s more of a pressure point than a market killer — especially for buyers and sellers hovering near that CI$2M line.

The headline sounds brutal — but the real impact is concentrated in the CI$2–4M zone

This change doesn’t hit everyone equally. The biggest friction shows up in the CI$2–4M bracket: buyers who can afford premium property, but still care about total transaction costs.

What’s actually changing?

The rule change is simple: - A new top stamp duty band of 10% applies to purchases over CI$2M Recent upper-market activity gives a sense of scale: - Roughly 127 properties over CI$2M sold in a recent year - Total value in that band: around CI$290M - If activity stays similar, the new band could add roughly CI$7–8M in extra duty

Zoomed out: noticeable revenue, not a government budget game-changer

Against a government budget north of CI$1B per year, this is: - Meaningful additional revenue - Not remotely enough to “reshape Cayman” financially So the market reaction is likely to be about behavior and pricing, not existential collapse.

Who really feels the squeeze?

This is the part that matters on the ground: - Caymanian buyers delaying upgrades or stepping down in price - Mid-tier foreign buyers reconsidering timing (or comparing jurisdictions harder) - Sellers listing just above CI$2M tweaking pricing to stay under the line

The “tiered structure” idea people are pushing

Some in the industry argue for a layered approach, such as: - First CI$2M taxed at 7.5% - Only the amount above CI$2M taxed at 10% That kind of structure still raises more from the top — without turning CI$2M into a hard psychological cliff that distorts pricing.

Ultra-luxury: annoyed, not scared

Once you’re in true trophy-asset territory, the psychology changes. Example: a beachfront penthouse around US$38M (about CI$32.5M). A 10% rate on the upper slice can add close to US$1M in duty. It’s a big number — but at that level, buyers tend to focus on: - Irreplaceable location and view - Brand, build quality, and amenities - Cayman’s stability, lifestyle, and tax environment Nobody likes paying more tax. But for ultra-luxury buyers, it’s usually a line item, not a deal breaker.

Short-term behavior: rush, pause, reset

Where you’re most likely to see movement is in timing, not long-term collapse. Common patterns around changes like this: - A rush of contracts just over the CI$2M mark before the new rate goes live - A cooling-off period as buyers and sellers reset expectations - Lawyers and developers nudging clients to lock in the old rate where possible If you’re in pre-construction or a higher-end new development, pay close attention to: - Contract dates, closing dates, and which stamp duty rate applies to your deal

Cayman vs other island markets: context matters

On its own, “10% stamp duty” sounds harsh. But you can’t look at that in isolation. Cayman still offers: - No annual property tax - Strong rule of law and stable institutions - Consistent local and international demand - A competitive position versus Bahamas, BVI, Turks & Caicos and other peers That’s why most serious buyers aren’t talking about fleeing — they’re talking about re-pricing and recalibration.

So… is this a deal killer?

Not really — but it absolutely changes the math if you’re shopping in the CI$2M+ lane. If you’re in that bracket, use this practical checklist: - Run your numbers with 10% baked in on the relevant slice - Confirm with your attorney which rate applies and when for your specific deal - If you’re in pre-construction, ask whether you can lock current duty before the new band kicks in - If your target is just above CI$2M, look at whether pricing, structure, or timing can be adjusted Cayman’s fundamentals — quality of life, stability, and long-term demand — remain intact. Expect some short-term friction around the CI$2M threshold, then the market will adapt. --- To see what’s currently on the market, you can search properties to rent or buy in Cayman.

Cayman’s New 10% Stamp Duty: Is It Really a Threat to the High-End Market?