📊 Majority of Cayman Islanders support stamp duty increase on luxury properties

According to a recent straw poll conducted by CNS, 79% of participants are in favor of the Cayman Islands Government increasing stamp duty on luxury properties. The poll, which saw participation from 500 individuals, comes after a policy U-turn by Premier Juliana O’Connor-Connolly on a proposal to increase stamp duty in areas with a high concentration of luxury development. While the poll did not define "luxury property," over one-third of participants believed that the government should increase stamp duty on such properties in all areas for non-resident owners. 🏘️

The poll also revealed that only 21% of participants believed there should be no increases at all. Other responses included 16% supporting an increase only in designated areas for non-resident owners, 15% supporting an increase in designated areas for all owners, and 14% wanting the increase to apply to all owners of luxury property in all areas. The majority of comments submitted by CNS readers favored an increase in duty, particularly for wealthy non-Caymanian owners, citing the impact on local infrastructure due to the over-development of high-end property. 📈

Concerns are growing that the continuous development of luxury property is pushing up real estate prices, making it unaffordable for local families. This trend is also fueling population growth as more work permit holders are brought in to build and service condos and hotel projects. These developments are often sold to foreign owners, bypassing any benefits to local people but leaving them to deal with the costs and inconveniences of traffic congestion, over-subscribed schools, and overcrowded supermarkets. The Premier initially proposed the stamp duty increase during the budget debate in December as a potential new source of revenue for the government. 🏦