FAQs

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FAQS

General Questions

Can an applicant be given an informal answer with regard to a particular request for a waiver?: No, all documentation must be received and reviewed by this office before a formal written request is processed.

How long does an application take to be processed?: The turnaround time for applications is 5-8 working days from the date of receipt by the Portfolio of Finance & Economics.

Natural Love and Affection

Who qualifies for a waiver of stamp duty in accordance with natural love and affection?: A waiver can be granted to applicants that are transferring property between immediate family members such as husband and wife, parent and child, brothers and sisters of the same parent, grandparents and grandchildren and by way of a court order. A waiver with regard to transfers between other family members would be subject to the discretion of the Financial Secretary.

Can an applicant transfer property to their adopted child?: Yes, provided that all certified adoption papers or a certified letter attesting to the adoption are submitted with the application.

What documents need to be submitted for a waiver of stamp duty under natural love and affection?: An original letter addressed to the Financial Secretary from the transferor signed in the presence of and by a Notary Public or Justice of the Peace outlining your request, a certified copy of the birth certificates for the parties involved and a certified copy of the land register for the property involved. This letter must be submitted to the office by the transferor personally. The waiver letter in addition to CI$50.00 stamp duty and CI$50.00 registration fees should be submitted to the Lands & Survey Department

Can unmarried applicants obtain a waiver of stamp duty on the transfers of property from one to the other?: No. Waivers under the natural love and affection provisions of the Law only apply to husband and wife, parent and child, brothers and sisters of the same parent, grandparents and grandchildren and by way of court order.

No Change in Beneficial Ownership

Who qualifies for a waiver of stamp duty in accordance with no change in beneficial ownership?: A full waiver can be granted to applicants that are transferring property/shares that is/are registered in their name/company solely to or from a company/name in which they are the sole beneficiary. Applicants must own no less than forty-five percent of a company to qualify for a percentage waiver with regard to applications in which there is more than one owner of the company.

What documents need to be submitted for a waiver of stamp duty under no change in beneficial ownership?: A letter addressed to the Financial Secretary outlining your request, a certified copy of the land register for the property involved, a certified copy of the Register of Shareholders (with regard to member(s) of the companies NOT Directors or Officers,) with nominee agreements, if any, and a current and certified copy of the Certificate of Good Standing.

Waiver of Import Duty

What documents need to be submitted with regard to an application for a waiver of import duty?: A letter addressed to the Financial Secretary outlining your request and all original documentation, including all customs receipts, bills of lading etc. Waivers are subject to the discretion of the Financial Secretary as they have been discontinued since 2001.

What documents need to be submitted with regard to an application in which an exempted company is requesting permission to own land/hold a lease in the Cayman Islands?: A letter addressed to the Financial Secretary outlining your request and a certified copy of the memorandum and articles of association precluding the issuance of bearer shares, coupons and certificates. A special resolution stamped by the Registrar of Companies will have to be done and certified if the articles do not preclude the issuance of bearer shares, coupons and certificates. A special resolution of Directors will also have to be done and certified stating that no bearer shares have ever been issued.

S.178 Restoration of Struck Off Companies

What documents need to be submitted with regard to an application for the restoration of a struck off company?: A letter addressed to the Financial Secretary outlining your request and a letter from the Registrar of Companies stating the date that the company was struck from the register, the fees accrued, and that they have no objection to the company being restored to the register.

What time frame is allowed to have a company restored once it has been struck from the register?: Up to ten years, after which time the company and any assets it holds become the property of the Crown.

Land Holding Company Shares Transfer Tax

What documents need to be submitted with regard to an application for the transfer of shares under the Land Holding Company Share Transfer Tax Law?: A completed Share Transfer Tax Return Form, a current and certified copy of the valuation report no older than six months for the property involved and a cheque, payable to the Cayman Islands Government, in the amount of the transfer tax.

What happens after the application is submitted to the Financial Secretary?: The Return form is approved and stamped by the Portfolio of Finance & Economics and returned to the applicant who submitted the request.

Bonded Warehouse

What are the requirements to establish a bonded warehouse?: Submit a cover letter addressed to the Financial Secretary requesting permission to prescribe a specified building as a bonded warehouse and a scale drawing showing the dimensions of the building.

First-Time Caymanian Buyers

Who qualifies for a waiver of stamp duty in accordance with the First-Time Caymanian buyers scheme?: Only Caymanians or status holders that have never purchased property in the Cayman Islands.

Can someone qualify for a waiver if they purchased property prior to acquiring Caymanian Status?: Yes, you can qualify for a waiver after having received Caymanian Status even though you purchased property before you received Caymanian Status because you are now considered a first-time Caymanian buyer.

Can an application be made for a waiver if two or more people are taking out a loan to buy one piece of property and one of more of them have previously purchased property?: Yes, all applicants involved in the loan are required to complete and submit an application. A waiver will be granted to the individuals that have never purchased property and stamp duty will be payable on the portion which represents the applicants that are not first-time buyers or not status holders. Kindly note that a 6% stamp duty rate is applied to non Caymanians/status holders.

Where is stamp duty paid?: Stamp duty is paid at the Lands & Survey Department, 1st Floor, BritCay House.

Where can I get an application form? (Printable application form): Application forms can be downloaded from the forms section of this website.

Can a waiver be granted if two applicants are buying a duplex together?: A full waiver can only be granted if the duplex has separate parcel numbers assigned to each apartment, if each applicant is buying an apartment individually and if the value of each apartment is no more than CI$200,000. A 2% rate reduction would apply if the stratified duplex has an individual value of no more than CI$300,000.

Can a waiver as a first-time buyer be granted to an applicant that has had property given to him/her as a gift under natural love and affection?: Yes, because the applicant received property as a gift from a family member without any monetary exchange whereas he/she would currently be applying the waiver to property that is now being purchased. This can be done provided that the applicant submits a Transfer of Land document as proof of said transaction.

What is the applicant supposed to do when he/she receives the approval letter?: The applicant should give the approval letter to the lawyer or loans officer that is handling the case or submit it directly to the Lands & Survey Department.

What happens if an applicant receives a waiver of stamp duty and sells the property before the five years has expired?: Stamp duty calculated on the market value of the property at the time of purchase becomes payable immediately.

How is the five year restriction on a property removed?: A letter requesting the restriction removal should be submitted to the Financial Secretary provided that the five year period has ended. The applicant should then take the approval letter from the Financial Secretary to the Lands & Survey Department.

If someone purchased property in the past and paid stamp duty not knowing that they could have qualified for a waiver, can he/she get a waiver on property that he/she is now purchasing?: No, because the waiver can only be applied to the applicant’s first purchase. If the applicant can provide a receipt or proof showing that they paid stamp duty after the first-time Caymanian buyer’s scheme came into effect (1997) and that they would have met all the specific criteria at the time, then that person may qualify for a refund.

If someone received a stamp duty waiver on raw land purchased in the past, can that person get a waiver on a house that they are now purchasing?: No, because the applicant only has one opportunity to apply the waiver to raw land or a home.

Cayman Brac Stamp Duty Waivers

Who qualifies for a waiver with regard to the Cayman Brac stamp duty scheme?: Approval can be granted to anyone purchasing property that will be completely developed within two years of the approval being granted, regardless of whether or not they have purchased property in the past.

What happens if the property is not developed within the two years specified?: Stamp duty is payable immediately and is calculated based on the rate at the time the property was purchased plus a10% penalty is applied.

What documents need to be submitted with regard to the Cayman Brac stamp duty scheme? (Printable Application Form): The completed application form and the signed transfer of land document should be submitted to Beverly Scott at the Lands Office in Cayman Brac.

Can an applicant apply for a waiver more than once?: An applicant may receive a waiver for one parcel of land, but if the applicant chooses to purchase a second parcel of land, the first parcel in which they received a waiver must be completely developed before a waiver can be granted towards the second parcel. Otherwise stamp duty will become payable on the first parcel of land.

S.80 Not-For Profit Organizations

How does one establish a Not-For-Profit organization?: Submit a cover letter addressed to the Financial Secretary requesting s.80 status for the organization in addition to the Memorandum and Articles of Association including the names, addresses and description of the subscribers and founding members.

When do I know whether I have received s.80 status?: All applications are reviewed by Cabinet. Applicants will be notified via post of the status of their application and will receive acknowledgement of receipt of the applications in the form of a letter from this office.

What are the costs incurred with regard to establishing a Not-For-Profit organization?

Fees payable are as follows:

A fee of CI$1,000
Amendment to the Memorandum & Articles of Association CI$500
Change of name CI$500
Change of Directors CI$500

What are the other conditions required by a Not-For-Profit organization in keeping in line with Financial Action Task Force (FATF) and the UN Security Regime?

Maintain an updated account for the organization, keeping in mind that any association that has a gross income of CI$50,000 per annum or more must have its accounts and books subjected to annual audit reviews.
The organization should also maintain records of contributions and contributors and how the contributions are applied.
The organization is to maintain its primary bank accounts with a licensed Cayman Islands bank and maintain its registered office here in the Cayman Islands.
Reveal the source of funds to the Cayman Islands Government.