Cayman Brac Duty Concessions Extended

On 31 December 2025, Cabinet approved the extension through 31 December 2030 of a slate of duty abatements including a reduced flat-rate import duty on building materials to Grand Cayman, and a significant concessions package for the Sister Islands predominantly intended to spur economic activity in Cayman Brac.

The extended concessions include a flat 15% import duty rate on building materials imported to Grand Cayman, while other measures focus specifically on the Sister Islands. These include a continued 100% import duty waiver on building materials imported to Cayman Brac and Little Cayman; and a 100% import duty waiver on gasoline imported to Cayman Brac extended to Little Cayman as well.

The concessions granted to Cayman Brac include a 100% stamp duty waiver on undeveloped land purchases under the value of $2 million; a reduced rate of 3% stamp duty on developed properties under the value of $2 million; and a 100% import duty waiver on household appliances imported to Cayman Brac. The household appliances are listed to include refrigerators, dishwashers, water heaters, pumps, washers, dryers, ranges, cook tops, and ovens only.

These concessions aim to encourage construction, investment, and job creation on Cayman Brac, and are an extension and adjustment of measures originally approved by the administration of the time in 2011, extended in 2015 and again in 2020 by subsequent administrations to provide economic stimulus to the Sister Islands, encouraging economic growth and stability in Cayman Brac specifically.

The conditions for the 100% stamp duty waiver for undeveloped land in Cayman Brac include the following:

• The property must be developed, within two years of grant of a stamp duty waiver, with a building which requires planning approval and a Certificate of Occupancy to occupy;
• If the property is not developed within the two-year period, the applicant may apply to the Minister for Finance and Economic Development for an extension of the concession for up to a further two years;
• If the property is not developed within two years of approval or further period approved by the Minister for Finance and Economic Development the stamp duty originally waived is payable in full plus a penalty of 10%; and
• A restriction shall be placed on the property prohibiting the transfer until all conditions of the waiver are met.

With regard to the 15% flat-rate of import duty charged on building materials destined for use in Grand Cayman, building materials are defined as:  All physical components and substances, whether solid or liquid, used in the construction, renovation or restoration and forming a permanent part of any building or related structure.

Specifically excluded are the following items: furniture and accessories; floor mats and rugs; linens; draperies; blinds; curtains and other window coverings; dishes; cutlery; cooking utensils; electronic security systems; televisions; stereos; speakers; entertainment systems; satellite dish systems; computers or other similar electronic equipment; construction tools or any other trade tools; and all household appliances such as refrigerators, freezers, dishwashers, icemakers, water coolers, water heaters, pumps, washers, dryers, ranges, cook tops, ovens and grills.

Minister for Finance and Economic Development Hon. Rolston Anglin, JP, MP said, “This package supports economic activity in Cayman Brac in a responsible and targeted way, helping to maintain stability and encourage continued investment. The concessions form part of our broader commitment to strengthening economic activity in Cayman Brac and creating the right conditions for long-term growth and opportunity, and further demonstrate this Government’s commitment to the Sister Islands and supporting sustainable development across the Cayman Islands.”