(CMR) Premier of the Cayman Islands Wayne Panton has announced revised stamp duty concessions for prospective Caymanian homeowners, with an increase in property value eligible for a full stamp duty waiver for first-time buyers.
Speaking in Parliament on Friday, 22 September, Panton said that the revised concessions also introduced a new tier of stamp duty concessions for Caymanians purchasing their second property.
Panton said amendment to the Stamp Duty Act would put these waivers into law, providing Caymanians with the certainty they need in order to plan for their future.
“For Caymanians purchasing their first parcel of raw land, there will be no stamp duty assessed on values up to $250,000. Where the property value is above $250,000 but less than $350,000, stamp duty will be assessed at 3.75 % on the difference above the $250,000 only,” he explained.
“For Caymanians purchasing their first home or developed residential property, there will be no stamp duty on assessed on value up to CI$550,000,” he added.
If the property value is above $550,000 but less than $650,000, stamp duty will only be assessed at 3.75% on the difference above $550,000.
Concessions will also be available for group purchases. For a group of between 2 and 10 persons buying their first piece of raw land together, there will be no stamp duty on a property up to $450,000; if the property is above $450,000 but less than $550,000, stamp duty will be assessed at 3.75 % on the difference above $450,000.
For those purchasing a home or developed residential property together, no stamp duty will be on property valued up to $600,000; for property valued above $600,000 but less than 700,00, a stamp duty of 3.75 will be applied to the difference only.
Waivers will also be available for second purchases. For Caymanians purchasing their second parcel of raw land, stamp duty will be assessed at 3.75 % on values up to $300,000. For second homes, the stamp duty will be 3.75% on values up to $600,000.
A 3.75 % stamp duty will apply to property valued at $550,000 for groups of 2 to 10 persons purchasing raw land; for groups buying a second home, a 3.75 % stamp duty will be applied on values up to 700,000.
“These revised concessions will provide significant financial relief for Caymanainas who are purchasing homes or land,” Panton said.
He explained that a young couple purchasing their first home for CI $600,00 would normally pay $45,000 in stamp duty. With the concession, they would only need to pay 3.75 % on the $50,000 difference, which is approximately $1,875, saving the family over 43,000 in stamp duty.
“This revised concession saves almost all of that $45,000, which they can use they can use to help provide for their children's education or save for their own retirement,” the Premier stated.
He explained that with these concessions, stamp duty is significantly reduced; this will increase the number of Caymanians able to afford their own homes or lands.
The enhanced stamp duty benefits will be offered to Caymanians immediately, with the Premier acting in his capacity as Minister of Finance and Commissioner of Stamp Duty to exercise the powers under section 20(6)(a) of the Stamp Duty Act (2019 Revision) to grant the concessions.
The process for the legislative amendments is a thorough but lengthy one, but when completed will ensure that these valuable benefits are available for all Caymanians purchasing their first or second properties without being subject to the discretion of anyone as is done presently.
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