With interest rates rising and taxation changes looming, it has become increasingly difficult for Canadian real estate investors to carry mortgages on investment properties. The challenges of the current housing market have buyers looking abroad; where there is plenty of international locations available but few offer attractive options like those found in The Cayman Islands (a British Overseas Territory). This beautiful Caribbean Island features stable government plus resilient economic climate which make investments profitable even when others struggle* – it also offers multiple user friendly routes towards citizenship status making this one perfect spot if you’re thinking about relocation outside Canada! (* real estate prices can always decrease as well as increase, Oasis Land Development can not make any guarantees to future market conditions)
Ease of doing business in Cayman
As an investor looking to invest in the Caribbean, you might be wondering what sets Cayman apart from other islands. The answer: no other jurisdiction has been as friendly and accommodating towards foreign investors like the Cayman Islands!
While many countries have restrictions on purchasing property by non-residents (e.g., Bermuda), they offer none here – which means that this small territory provides more opportunities than others nearby with their streamlined process for buying real estate. The process in Cayman is intended to encourage, rather than discourage, property ownership from foreign investors.
The Torrens Title System in the Cayman Islands is a unique and efficient system for registering land titles. The government guarantees each register, meaning that they are obligated to compensate you if there’s an error or omission on your paperwork; this may eliminate some of those pesky costs associated with buying property!
The Cayman Islands offer a unique and enriching living experience in the Caribbean—not just due to the beaches and tropical climate. The Cayman Islands attributes its economic success to two factors: financial services and tourism, both anchored by a stable government. And the numbers speak for themselves — the country’s GDP per Capita in 2019 was US$91,392.64 making it number two in North America.
As a British overseas territory, the islands benefit from economic and governing independence, with the added protection and support from the United Kingdom. Through the United Kingdom’s longstanding commitment to the Cayman Islands and their self-sustaining House of Parliament, the Cayman Islands have developed first-class infrastructure to provide its residents with top tier utilities and telecommunications. The islands are also home to world-class healthcare facilities and excellent British and American schools.
Ease of Travel
The Cayman Islands are an international hub for finance with flights to major cities around the world. With such easy access, it’s no wonder this small island has become so popular among traveler’s from all over!
There is an absence of corporate, capital gains, inheritance, income, or a reoccurring property tax in the Cayman Islands. Although there is no reoccurring property tax in the Cayman Islands, Cayman is not entirely tax-free. You will be required to pay a stamp duty of 7.5% on the market value of the property. This stamp duty is a one-time tax paid in CI dollars to the Cayman Islands Government on all real estate transfers in the Cayman Islands.
Cayman Residency by Investment
Another benefit for Canadians investing in Cayman real estate is the ability to apply for Permanent Residency. There are two options available for those interested in acquiring residency through property real estate investment. View our blog about achieving residency in the Cayman Islands here.
Canadian Taxation on Foreign Property
Canadian citizens still residing in Canada are required to pay property tax on foreign property of CAD$100,000 or more. The exact amount of the tax can vary depending on specific details relating to the property. Filing a Form T1135 is required annually.
If you intend to relocate to the Cayman Islands, Canadian citizens have the option to declare themselves non-residents of Canada. This would allow you to take full advantage of the tax-free benefits of the Cayman Islands. This requires you to sever your residential ties with Canada and typically requires you to dispose of personal property in Canada. You become a non-resident from the date of your departure. So would still be required to file a tax return for the portion of the year you remained in Canada. You may also be required to pay a departure tax, which is essentially the reporting of a capital gain.
We would always recommend you speak to your own financial advisors in regards to your personal tax requirements.
Oasis Interest Free Payment Plan
Oasis’s Land Development offer an interest free payment plan on all of our investments, a multi-step schedule for collecting payments for the cost of your Cayman Island Real Estate with Oasis Land Development Ltd. Once you have paid the initial reservation and deposit which secures the land and takes the land off the international market the balance of your investment (called the completion balance) is then spread equally over either monthly or quarterly payments (which you will choose), to a maximum of five years.