Investing in real estate in the Cayman Islands offers a unique combination of financial benefits and lifestyle perks. The Cayman Islands are known for their stable economy, strong tourism sector and favorable tax environment, making them an attractive location for property investment. By purchasing a property here, you can enjoy a solid return on investment, capitalize on the steady influx of tourists and benefit from the islands’ pristine beaches and vibrant local culture.
Setting up your property for Airbnb in the Cayman Islands involves a detailed process to ensure compliance with local regulations and standards. This guide will walk you through the necessary steps, focusing on legal requirements, obtaining a tourism accommodation license, tax obligations and how to market your property.
Legal Requirements
To operate a short-term rental property in the Cayman Islands, you must comply with the Tourism Law (1995). This law mandates that all tourist accommodations, including those listed on Airbnb, must be licensed by the Hotel Licensing Board (HLB). Operating without a license is a punishable offense with significant fines.
Compliance ensures that your property meets the safety and cleanliness standards set by the Department of Tourism. This not only protects guests but also enhances the reputation of your property and the Cayman Islands as a premier tourist destination.
Obtaining A Tourism Accommodation License
Anyone offering short-term rental accommodations, from single apartments to large hotels, needs a Tourism Accommodation License. This includes Airbnb hosts.
To apply for a license, you need to complete the Application for Tourist Accommodation License form and submit it to the Department of Tourism (DOT) along with the required fee. The fee structure is as follows:
- 1-10 bedrooms: KY$250.00
- Over 10 bedrooms: KY$250.00 plus KY$25.00 for each additional bedroom over 10
Applications can be submitted online or in-person at the DOT offices in Grand Cayman or the Sister Islands.
Licenses must be renewed annually. For apartments, condos, villas and guesthouses, the license expires on August 31st each year. Renewal applications should be submitted by May 1st to ensure timely processing.
Tax Obligations
As a short-term rental operator, you are required to charge a 13% Tourism Accommodation Tax on all bookings. This tax must be remitted to the DOT within 28 days after the end of the month in which the accommodation was provided.
You must submit a monthly occupancy report to the DOT by the 28th of each month, regardless of whether your property had guests. This report helps the DOT track tourism metrics and ensure compliance. Timely submission of taxes and reports is crucial to avoid penalties.
Marketing Your Airbnb
An eye-catching listing is essential to attract guests. Use high-quality photos that highlight your property’s best features and write a detailed description that includes information on amenities, nearby attractions and house rules.
Invest in professional photography if possible. Ensure that your photos are well-lit, showcase different angles of each room and include shots of unique features such as a pool, garden, or stunning views.
Your description should be engaging and informative. Highlight what makes your property unique, such as proximity to beaches, local attractions, or special amenities like a hot tub or gourmet kitchen. Be honest about what guests can expect to avoid negative reviews.
Setting up your property for Airbnb in the Cayman Islands requires careful attention to legal requirements, marketing strategies and guest experience. By following these guidelines, you can ensure a successful and compliant Airbnb operation that delights guests and maximizes your rental income.
Are you thinking of buying and renting a property but would like to avoid the hassle? We’re here to assist with long term rentals! Contact a Corcoran Cayman Islands agent today to secure your next investment.
