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Individual taxation

Residence and domicile

How is residence/domicile determined for tax liability purposes in your jurisdiction?

There is no direct taxation in the Cayman Islands; there is only stamp duty and import tax, which apply to both residents and domiciliaries in the same manner.

Income

Describe the income tax regime in your jurisdiction (including tax base, rates, filing formalities and any exemptions, reliefs or deductions).

There is no income tax in the Cayman Islands.

Capital gains

Describe the capital gains tax regime in your jurisdiction (including tax base, rates, filing formalities and any exemptions, reliefs or deductions).

There is no capital gains tax in the Cayman Islands.

Inheritance and lifetime gifts

Describe the inheritance and gift tax regime in your jurisdiction (including tax base, rates, filing formalities and any exemptions, reliefs or deductions).

There is no inheritance tax or gift tax in the Cayman Islands.

Real estate

What taxes apply to individuals’ acquisition and disposal of real estate in your jurisdiction?

The stamp duty rate on all three Cayman Islands is 7.5% of the purchase price or market value of the property, whichever is higher. Stamp duty is calculated in Cayman Islands currency.

For gifts of real estate, stamp duty will be CI$50 when the transfer is stated to be for natural love and affection between parent and child, husband and wife, brothers and sisters, grandparents and grandchildren. In all other cases, the full rates of duty apply. There is also a CI$100 stamp duty on purchase agreements. 

For leasehold agreements, stamp duty varies as follows:

  • for lease terms of fewer than five years – 5% of the average annual rent;
  • for lease terms between five and 10 years – 10% of the average annual rent;
  • for lease terms between 10 and 30 years – 20% of the average annual rent; and
  • for lease terms of 30 years or more – treated the same as a transfer.

Non-real estate assets

Do any taxes apply to the acquisition and disposal of other assets apart from real estate?

There is no direct tax in the Cayman Islands; there is only stamp duty and import tax.

Other applicable tax regimes

Are any other direct or indirect tax regimes relevant to individuals?

There is no direct taxation in the Cayman Islands; there is only stamp duty and import tax.

Planning considerations

Are there any special tax planning considerations for individuals with a link to your jurisdiction?

There is no direct taxation in the Cayman Islands; there is only stamp duty and import tax.

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