CAYMAN ISLANDS Law and Practice Contributed by: Norman Klein and Adam Johnson, Appleby
2.10 Taxes Applicable to a Transaction Ad valorem stamp duty is payable on the follow - ing (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, although concessions or reduced rates may be available in specific circum - stances (such as first-time Caymanian purchasers and purchasers of units in lower value newbuild 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 consideration other than or in addition to rent is provided, 7.5% of the amount of the premium; and (b) where the consideration or any part of the consideration 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, whichever 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, whichever 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, whichever is higher, if the term exceeds ten years; and
Polluters, owners and occupiers could also be subjected to civil action for any environmental harm. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Any development of land requires a grant of planning permission. “Development” encompasses the carrying out of building, engineering or other operations in, on, over or under any land, the making of any material change in the use of any building or other land, or the subdivision of land. However, it is subject to a number of exclusions, including any works for the maintenance, improvement or other alteration that only affect the interior of a building or do not materially affect the external appearance of the building. Planning permission may be refused or granted unconditionally, or can be subject to such condi - tions as the relevant authority deems fit. A record of all grants of planning permission, modifications, revocations and conditions attached to planning permission relating to Grand Cayman is maintained by the Central Planning Authority, and a record of grants relat - ing to the sister islands, Cayman Brac and Lit - tle Cayman, is kept by the Development Control Board. 2.9 Condemnation, Expropriation or Compulsory Purchase The Cayman Islands government can compulso - rily 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 prop - erty’s market value.
• usually paid by the tenant.
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