REGISTRATION OF TITLE All dealings in real estate in the Cayman Islands are based on a registered land system. All land is identified and numbered and a public records sheet relating to it is kept at the Land Registry. Land titles in this system are thus guaranteed by the government, title insurance is unnecessary and real estate transactions can be carried out quickly and efficiently. MORTGAGES (CHARGES) Mortgages in the Cayman Islands are called Charges and these are registered in the same manner as other real estate interests. Title becomes free and clear upon payment of all sums due under the mortgage. All types of real estate, including conomimiums, may be mortgaged as security for a loan. LOANS Non-caymanians can easily obtain loans in the Cayman Islands. A payment of 20-30% of the value of the property is required as a downpayment. Interest rates vary so ask your real estate agent for the latest rates. It is very difficult to get a loan in another country to purchase property in the Cayman Islands since this would leave the lending bank no recourse in the event of a default. INSURANCE Property and hurricane insurance is readily available at a reasonable price. We suggest using Cayman General insurance but other are available. TAXES AND DUTIES The Cayman Islands do not have income, sales, property, capital gains, death, estate, inheritance or corporate taxes. There is, however, a tax on tourist accomodations and a departure tax for airline passengers. Upon purchasing a property on the islands, a one time payment of 7.5% on the value of the property is assessed. The assessment is less the value of any furnishings within the propoerty. A 1% stamp duty is also assessed against the mortgage amount. Import duties are applied to most incoming items. This duty is typically 20% of the value including transportation and shipping charges. Cayman Brac currently has a moratorium on duty assessed against all construction materials. RENTAL INCOME Many people purchase homes or condominiums and offset the cost of the mortgage with the funds retained from renting. The condominium can be let on a short or long term basis. Contracting with the condominium management company to put the suite in the rental pool takes care of all the hassles associated with renting and taps into the aggressive marketing programs directed at condo rentals.