Expert: Drew Wilmoth - 3/22/2007

Question
QUESTION: I have SEVERAL questions. Does the Grand Cayman Island have the following: Movie theater, movie rentals, Taco Bell, Mexican restaurants, colleges, libraries, Wal-mart, sales tax, property tax, local tax, medical/dental insurance, mosquitos, camp sites, banks,
Do they observe any US holidays (Christmas, Easter, Halloween, etc..)?
Is there a website that shows all the legalities on how to move to the Grand Cayman Island from the US?
ANSWER: Let's break these down into short Q/A format:
Movie theater?   Yes.  There is a two screen theater in current operation and a new multi-screen theater under construction.

Movie Rentals? Yes.  There are Blockbuster Video outlets and several local rental locations.

Taco Bell?  Alas, no.  Major chain fast food franchises include Burger King, Wendy's, Pizza Hut, Subway, and Papa John's.

Mexican restaurants?  Several restaurants do have Tex-Mex menu items, though at this time there is

Colleges?  Yes.  In Grand Cayman there is the Cayman Islands Law School, St Matthews Medical School, and the University College of the Cayman Islands.

Libraries?  Yes.  There are public libraries in each district.  To obtain a library card for an expatriate requires you show a work permit valid for at least six months.

Wal-mart?  No.  There is not currently any comparable shop, though there is discussion of such a store in the future.

Sales tax? No.  There is an import duty imposed on almost all goods coming into the islands.  The duty rate for most items ranges from 20% to 27%.

Property tax?  No.  There is no annual property tax.  There is a one time stamp duty payable upon the transfer of property.

Local tax?  No.

Medical/dental insurance?  Yes .  Employers must provide health insurance to employees, their unemployed spouse, and minor children who are listed as dependents on their work permit.  Dental insurance is provided by some employers.

Mosquitos?  Yes.  There is an effective mosquito control program which greatly reduces the extent of the problem.

Camp sites?  No commercial camp sites exist, however many Caymanian families enjoy camping in the Eastern Districts, particularly over the Easter weekend.

Banks?  There are hundreds of banks in Grand Cayman, but only a very few that provide banking services to the general public.

US holidays? Yes.  Christmas and Easter are the most important holidays in this largely Christian country. The Friday before, and Monday after, Easter are public holidays.  Halloween, Valentine's Day, St Patrick's Day, Canadian and American Thanksgiving are all widely celebrated but are not public holidays.

In short, it is important to first secure a job.  The employer then can walk you through the legal process obtaining the work visa.  A good reference for newcomers is http://www.caymannewresident.com/ with answers to many more common questions.

---------- FOLLOW-UP ----------

QUESTION: Is it true that you cannot buy a house within the first year of moving to the Grand Cayman Island? About the import duty, is it more cost effective to move to the Grand Cayman Island with nothing (cars, electronics, furniture) and buy everything on the island? Do they have electronics stores (up to date computers, tv's), furniture stores, car dealerships?

Answer
Quite to the contrary, there are no citizenship or residency requirements for the purchase of a home or land in Cayman. You can buy property in Cayman even before moving to the island, and a significant proportion of the oceanfront vacation homes are owned by non-residents.

Import duty is charged both on the value of the goods imported as well as the cost of shipping and insurance.  Many homes are rented, or even sold, fully furnished.  

There is a major exemption for new residents.  Import duty is waived on used household goods imported within the first six months.  This applies to furniture, clothing, and other household items but does not apply to motor vehicles.

Many items are more expensive in Cayman, reflecting the import duty paid on most goods.  You must weigh the cost of shipping your household goods versus the cost of buying new.  

Even with paying import duty, long term residents often fly to Florida for major purchases (such as an entire household of furniture), and can cover the shipping costs and import duty and still come out ahead financially.  If your cost of shipping items to Florida is minimal then you may come out well ahead by importing household goods within the six month exemption time frame.

Electronics, furniture, and automobiles are all readily available.  Electronics items are often in stock, but furniture often is ordered on demand.

Automobiles are subject to a 27% duty and additional environmental fees, making importing of new vehicles quite expensive.  The used vehicle market can also be expensive and has led many island residents to import vehicles from as far away as Japan.