CAYMAN ISLANDS Law and Practice Contributed by: Adam Johnson, Appleby
Planning permission may be refused or granted unconditionally, or can be subject to such conditions as the relevant authority deems fit. A record of all grants of planning permission, modifica - tions, revocations and conditions attached to planning permission relating to Grand Cayman is maintained by the Central Planning Authority, and a record of grants relating to the sister islands, Cayman Brac and Little Cayman, is kept by the Development Control Board. 2.9 Condemnation, Expropriation or Compulsory Purchase The Cayman Islands government can compulsorily acquire any land. This is usually done for the purposes of establishing new public roads but can also be done in other circumstances. Compensation is payable, typically at the property’s market value. 2.10 Taxes Applicable to a Transaction Ad valorem stamp duty is payable on the following (subject to certain exceptions that are at the discretion of the Minister of Finance). A conveyance or transfer of any immovable property (freehold or leasehold): • typically at a rate of 7.5% of the purchase price or of the market value, whichever is higher (if less than KYD2 million) or 10% of the purchase price or of the market value, whichever is higher (if KYD2 million or above), although concessions or reduced rates may be available in specific circumstances (such as first-time Caymanian purchasers and pur - chasers of units in lower value new build homes); and • usually paid by the purchaser. A grant of a lease of any immovable property: • if the term exceeds 30 years, 7.5% of the full market value of the leasehold interest in the real property; or • if the term is 30 years or less:
(a) where any premium or other valuable consider - ation other than or in addition to rent is provid - ed, 7.5% of the amount of the premium; and (b) where the consideration or any part of the con - sideration is rent: (i) 5% of the aggregate rent if the term is less than one year; (ii) 5% of the average annual rent or of market rent, which - ever is higher, if the term is one year or more but does not exceed five years; (iii) 10% of the average annual rent or of market rent, which - ever is higher, if the term exceeds five years but does not exceed ten years; or (iv) 20% of the average annual rent or of market rent, whichev - er is higher, if the term exceeds ten years; and • usually paid by the tenant. Debentures and legal or equitable mortgages, or charges of immovable or movable property within the Cayman Islands: • in the case of a debenture or a legal or equitable mortgage, or a charge of immovable property within the Cayman Islands: (a) 1% of the sum secured where the sum secured does not exceed KYD300,000; or (b) 1.5% of the sum secured where the sum secured is more than KYD300,000 (whether initially or after a further advance); • in the case of a legal or equitable mortgage, or a charge of movable property within the Cayman Islands, 1.5% of the sum secured (subject to a maximum charge of KYD500 where the secu - rity instrument is granted by a Cayman Islands exempted company, a Cayman Islands ordinary non-resident company, a Cayman Islands exempt - ed trust or a body corporate incorporated outside of the Cayman Islands, or where the security is over shares in a Cayman Islands exempted com - pany or a Cayman Islands ordinary non-resident company); and • usually paid by the borrower. Policies of insurance for property within the Cayman Islands: • 2% of the cost of new or renewed property insur - ance premiums; and • usually added to insurance premiums.
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