Does the Cayman Islands Have Property Tax? What Owners Pay

The short answer

Owning a home in Cayman costs nothing in annual tax. You will not receive a yearly rates or council tax bill, and there is no tax on rent from a long-term tenant or on the gain when you sell. Government raises its money in other ways - import duties, fees, stamp duty and, for tourist accommodation, the Tourist Accommodation Tax.

So the honest answer to "tax in the Cayman Islands" for a property owner is: stamp duty once, on purchase; and 13% on visitor stays, every month, if you run a short-term rental.

Taxes Cayman does not have

• No annual property tax - no tax based on the value of land or buildings you hold.
• No income tax - on salaries, business profits or rental income.
• No capital gains tax - selling a property at a profit does not trigger a Cayman tax bill.
• No tax on long-term rental income - a tenant on a 12-month lease pays you rent, and Cayman takes no share.
• No inheritance tax.

This is why many overseas buyers describe Cayman as having "no property tax". It is true for owning and for long lets. It stops being true the moment you rent to tourists.

Where does the line fall between a long let and a tourist stay? The law defines a tourist as someone not ordinarily resident who stays for up to six months, so a tenant on a lease of more than six months is generally outside the tax, while a visitor booking two weeks on Airbnb is not. Stays of more than 28 days are taxed at check-out. If you plan anything in between - a three-month winter let, say - confirm the treatment with the Department of Tourism first.

The exception: short-term rentals pay 13%

If you rent a home, condo or room to visitors - on Airbnb, VRBO or directly - you owe the Tourist Accommodation Tax of 13% of the room charge, under the Tourist Accommodation (Taxation) Law. The rate was 10% until the 2012 budget raised it.

• It is a tax on the stay, not on your profit. DoT calculates it on the gross room rate, before you deduct cleaning, electricity, maintenance or platform fees.
• You file and pay it yourself. Airbnb does not collect it in Cayman. The return and payment are due by the 28th of the month after the stays, with a nil return for empty months.
• Late costs 20%. A late return or payment adds an automatic 20% surcharge that DoT cannot waive - see what happens if you miss the 28th.
• Caymanian and resident guests are exempt, with proof. See exempt stays.

You also need a Tourism Accommodation Licence (CI$250 a year for 1–10 bedrooms) before you take a booking. The full rules are in the Tourist Accommodation Tax guide.

Stamp duty when you buy

Stamp duty is the one property tax every buyer pays. The Cayman Islands Real Estate Brokers Association gives the rate as 7.5% on all three islands, on the purchase price or market value, whichever is higher. Since 1 January 2026, properties of CI$2 million or more pay 10%.

• It is paid once, on the transfer - not every year.
• Caymanian first-time buyers can qualify for reduced or nil duty below set thresholds, which have changed several times.
• Mortgages are stamped too - CIREBA lists 1% under CI$300,000 and 1.5% above.

Confirm current rates and concessions with the Lands and Survey Department or a Cayman attorney before you budget.

Selling is simpler: there is no capital gains tax on the profit. If the property is a licensed rental, note that the Tourism Accommodation Licence does not transfer with the sale - the new owner has to deal with DoT before taking bookings, and the seller should file returns for every month up to completion.

Other costs that feel like tax

No tax does not mean low running costs. Import duty is built into the price of most goods, including furniture and appliances you ship in. Electricity, strata fees and insurance are all significant. For a rental, these sit alongside the 13% - the cost breakdown for a Cayman Airbnb goes line by line.

Your home country may tax you

Cayman not taxing your rental income does not mean nobody does. If you are tax resident somewhere else, that country may tax your Cayman rental profit and, later, the gain on sale. Some common cases, in general terms only:

• United States: citizens and resident aliens are taxed on worldwide income, wherever they live - so Cayman rental income is reportable on a US return.
• United Kingdom: HMRC says UK residents normally pay tax on foreign income, including rent from property abroad. The rules for people whose permanent home was abroad changed from 6 April 2025.
• Canada: residents report worldwide income, and a rental property abroad counts towards the Form T1135 foreign-property reporting threshold (cost over C$100,000).

Whether the 13% Tourist Accommodation Tax can be deducted or credited at home depends on your country's rules - ask a tax adviser who deals with your jurisdiction. Keep every DoT return and payment record either way; they are your evidence of what you paid in Cayman.

Summary table

If you run a short-term rental, Hosts.ky handles the one recurring tax you do have: it turns your Airbnb bookings into the monthly DoT return and reminds you before each deadline.