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Restrictions You Need To Know When You Plan To Retire In The Cayman Islands

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The Cayman Islands are under British rule, so if you plan to retire there, you will need to know what it costs and how Americans can own Cayman residential property without British taxation. You do not have to apply for dual citizenship to reside in the Caymans; that is a myth. However, you could if you wanted to and then if you decide to get a part-time job or you want to rent your home out to tourists, you will be able to do so. Here are a few other need-to-know guidelines and laws surrounding Americans and ownership of Cayman property.

Passports Are Required, Visas Apply Sometimes

Although there is a loose guideline about needing a passport to enter the Caymans, the truth is that you need it to leave the Caymans. Ergo, have your passport with you regardless of how much time you spend there, and how may residential properties you buy. If you stay half the year in your Cayman home and the other half somewhere else, you do not need a Visa. However, if you stay more than half the year, or you permanently retire to your property in the Caymans, you will need a Visa to stay. Additionally, you may only renew your Visa and stay for a maximum of seven years, unless you leave for a short time and then return. Then the time allotted does not count against you.

Property Taxes

As an American citizen, you do not need to pay property taxes on your home in the Caymans. Unless you apply for and receive dual citizenship as a British citizen, your home is excluded from British taxation as long as you:

  • are the owner and resident of the property.
  • do not rent the property out to non-Cayman Island residents, i.e., American tourists.
  • use the property with the sole intent of leasing it to make money.

In short, you remain British tax-free if you use the residence strictly for your personal needs and/or you house British/Cayman citizens in it.

Owning More Than One Residential Property in the Cayman Islands

This is an unusual situation, but not unheard of. If you have the money to purchase more than one Cayman residential property, it is allowed by law, but the same restrictions as owning a single property apply. In essence, you cannot work in the Caymans without a work Visa, but you can be a landlord to Cayman residents and collect rent if you own extra properties. If you want to know more about this or other residential property laws of these islands, contact a Cayman Islands real estate agency.


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