Property Market Overview
Although Cayman’s economy is based primarily on the twin pillars of the territory’s successful offshore financial services industry and its tourism product, property is also a key economic generator and a spin-off from the tourism sector.
There are no legal restrictions of any kind to foreign ownership of property in Cayman, which makes it very attractive to overseas investors. A real estate title can be held in one name, a group of people or by a company or corporation. Title to property is granted and guaranteed by the Cayman Islands Government protecting ownership.
These attractive factors, in addition to no annual property tax, no inheritance tax, political stability, favorable landlord and tenancy rules, a beautiful natural environment and many local attractions have facilitated the growth of a significant and buoyant property market.

Tourism-fuelled Economy
The territory has enjoyed stable economic prosperity for many years, with steady GDP growth being fuelled by luxury tourism, attracted to the clean, friendly and safe ambiance of all three islands.
The Tourism industry is responsible for more than 70% of Caymans’ GDP. This is fuelled by the islands vast unspoiled beaches, duty-free shopping, scuba diving and deep-sea fishing, which attracted figures in the region of 1.8 million air and cruise visitors in 2008 alone.
Its crystal-clear waters and unspoiled reefs make the Caymans one of the world’s most revered scuba diving destinations, with Little Cayman being listed as one of the best diving sites in the world.
The Cayman Islands are also the world leader in the registration of mega-yachts, and a major player in the registration of other vessels, thus underlying its proven capability to compete on an international level.

Financial Services Industry
The Cayman Islands is the fifth-largest banking centre in the world with $1.5 trillion in banking liabilities and a concentration of top-quality service providers such as UBS and Goldman Sachs.
They are home to 278 banks (as of June 2008), conducting banking activities at both domestic and international levels.
The most prominent sectors are banking, hedge fund formation & investment, structured finance & securitization, captive insurance and general corporate activities.

Political Stability
The success of the Cayman Islands originates from a long-standing stable government, operating British common law.
The Caymans have cultivated a robust platform to foster continued successful economic growth, which in turn, will perpetually attract investors, multinational organizations and skilled personnel.

Commitment from the Government
The Cayman Administration have committed to bolstering long term growth of economic output with continued investment in infrastructural enhancements.
Their endeavors to promote the international significance of the island is demonstrated by their current airport expansion program, in which terminal capacity will be tripled, coupled with the addition of new air routes into the islands from north-eastern locations such as Chicago, traditionally considered as one of the top five source markets for US visitors.
Further initiatives aimed at boosting stay-over arrivals include a new marketing campaign by the Department of Tourism to target secondary markets such as Canada and the UK under the slogan of ‘Three islands, one idyllic destination’.
The government has also established the Cayman Island Investment Bureau (CIIB), the territory’s dedicated investment promotion agency with a mandate to facilitate and stimulate long term investments in all sectors of the economy.

Population Growth
With a current population of 57,000 residents, the CIA World Factbook lists the Cayman Islands as the 34th fastest growing population in the world at 2.39% per annum. However, the Cayman Economics and Statistics report for 2008 demonstrates a greater level of growth of 3.5% against the same period in 2007. Comparatively, the UAE is the highest at 3.69%, whilst the UK is listed at number 175 with a growth rate of 0.28% per year.

Construction and Real Estate
According to the Cayman Economics and Statistics office annual economic report 2008, construction recorded positive growth in 2008, to a value of $502.3million, representing a 12.5% increase on the previous year. Furthermore, despite a global decline, the number of transferred freehold properties rose by 4.5% in this year, to a value of $558.1million

Tax Residency
High-net-worth investors are encouraged to invest in the Cayman islands, with a view to achieving permanent residential status in order to take advantage of the tax benefits this may present. Application for residency is available via two different channels, either as Wealthy Retirees or Entrepreneur/Investors.

Summary
With the 10th most valued currency in the world, the highest standard of living in the Caribbean, its own stock exchange, no direct taxation and a distinguished financial reputation, the Caymans’ are an obvious choice in this new era of intelligent property investing

• No local taxes - there is no income tax, no inheritance tax, no non-residents tax, capital gains or other similar taxes in the Cayman Islands
• Stability and Security - the Cayman Islands has a stable government, sophisticated infrastructure and a strong economy based on international banking and tourism
• Investment freedom - no restrictions on investment purchases •       
• Comprehensive investment services and opportunities
• Increasing population growth and commitment to securing increased tourism revenue.