The Cost of Living in Cayman Islands: Comprehensive Guide

The Cayman Islands?is a popular tourist destination known for its picturesque beaches, crystal-clear waters, and vibrant marine life. But with working remotely trending for business owners and entrepreneurs, Cayman is also becoming a?hotspot for wealthy families and HNWIs?from Canada and the US looking to pay less tax and live in a tropical paradise.

However, the?cost of living in the Cayman Islands?can be high, especially compared to other popular low-tax Caribbean islands such as Barbados, Antigua and Barbuda, or Turks and Caicos. Therefore, if you are considering relocating to the Cayman Islands, it is important to understand the cost of living and weigh the pros and cons of each option.

This comprehensive guide?will provide you with all the information you need about the cost of living in the Cayman Islands:

Travel and Accessibility

When travelling back and forth to the Cayman Islands, the costs can vary significantly depending on your location and the time of the year. The major airport in the Cayman Islands is the Owen Roberts International Airport, located on Grand Cayman, the largest of the three islands. The airport serves as a hub for various airlines, including American Airlines, Delta, United, British Airways, and Cayman Airways.

If you are travelling direct from the United States or Canada, you can expect to pay around US $400 to US $800 for a round-trip ticket, depending on your departure location and the time of the year. However, if you are travelling from Europe, the cost can be significantly higher, ranging from $800 to $1,500. Also, unlike other Caribbean islands with direct flights from the UK, France, Belgium and the Netherlands, Cayman only flies direct to North America. Travelling from other Caribbean islands, you can take advantage of various low-cost airlines, such as Cayman Airways, InterCaribbean Airways, and Caribbean Airlines, to save on travel costs.

Housing and Real Estate

Real Estate in the Cayman Islands can be expensive, particularly in highly desirable areas such as Seven Mile Beach, Seven Mile Beach Corridor, and South Sound. These areas are located on the western side of the island, which is home to the major business districts of Camana Bay and George Town. However, prices tend to become more reasonable as you move eastward. While this may be an attractive option for those looking to save money, it’s important to note that commuting from the eastern side of the island can be time-consuming. Rush hour traffic can turn a 15–20 minute drive into a commute of more than an hour each way.

If you want to purchase a property, prices for newer or pre-construction condos usually start around US $1500 per/sqft, with beachfront starting at around US $2500 per/sqft. Rental yields on the island are also relatively low compared to other Caribbean islands at 3–5%. This is due to the high demand in the Cayman real estate market from foreign investors and the increase in construction costs.

Seven Mile Beach is one of the most sought-after areas in the Cayman Islands, but it can also be one of the most expensive. New condos in this area can cost upwards of US $2,500 per square foot, while slightly older beachfront condos can be found for around US $1,500. However, for those looking to save money, there are still opportunities to find great deals in some of the original beachfront condos on Seven Mile Beach for less than $1,000 per square foot. If you’re willing to venture further west and off the beach, resale prices tend to be around $500 per square foot, while new condos can cost upwards of $700 or more per square foot.

Food and Living Expenses

The cost of living in the Cayman Islands can be relatively high, and food and other living expenses are no exception. While there are several options available for dining out and buying groceries, it is important to budget accordingly to avoid overspending.

There are several restaurants and cafes on the islands that offer a range of cuisines, from local Caribbean dishes to international cuisine. However, dining out can be quite expensive, with prices for a meal averaging around US $30 to US $50 per person at mid-range restaurants. Higher-end restaurants can be even more expensive, with prices ranging from US $50 to US $100+ per person.

Cooking at home or hiring a private chef can be more cost-effective. Several supermarkets on the islands offer a range of products, including local and imported items. Prices for groceries can be higher than in other countries due to the high cost of importing goods. An essential weekly grocery list can cost around $150 to $250 per person. However, by shopping sales and purchasing local produce, it is possible to reduce the cost of groceries.

Entertainment

When it comes to entertainment, there are options for every budget on the Cayman Islands. Those looking for affordable entertainment can enjoy activities like shore diving or snorkelling. All beaches on the islands are public and easily accessible, making it easy to spend days exploring different locations such as Barker’s, Smith Cove, and Spotts, and even taking a drive to the other side of the island to visit Rum Point and Kaibo.

One experience that shouldn’t be missed is visiting the sandbar, home to Stingray City — a unique and memorable experience. For tourists looking for other destinations, there are options such as the Botanic Gardens with the Blue Iguana exhibit, the Turtle Farm, Starfish Beach in Kaibo, or even taking a day trip to Cayman Brac or Little Cayman.

Transportation

The Cayman Islands have a well-developed transportation system with several options for getting around the islands. The most common modes of transportation include taxis, buses, and rental cars. However, owning a car is often more practical and cost-effective for those living and working on the islands.

If you plan on purchasing a new or used car, there are several dealerships on the islands where you can find a range of vehicles. Most used cars are imported from places like Japan, the UK, and Dubai since Cayman. Like many other Caribbean islands, one of the factors that significantly add to the cost of living in the Cayman Islands is duty. For example, luxury vehicles in Cayman have an import duty as high at 42%, plus the cost of shipping. Take this into consideration when pricing out a used car for import.

Insurance

If you are living or working in the Cayman Islands, it is essential to have adequate insurance coverage to protect yourself from any unforeseen circumstances. Therefore, health insurance is mandatory for all residents and employees, and the employer is responsible for providing coverage for their employees.

If you are self-employed or a business owner, you must purchase your health insurance. The cost of health insurance can vary depending on the coverage and the provider. However, you can expect to pay around US $300 monthly for a basic health insurance plan and probably closer to $650 for something comprehensive.

In addition to health insurance, it is also recommended to have property insurance to protect your home or business from any damages or losses due to natural disasters, theft, or other unforeseen circumstances. The cost of property insurance can vary depending on the type of property and the coverage amount.

Healthcare

The Cayman Islands has a well-developed healthcare system, with several public and private hospitals and clinics on the islands. The public healthcare system is not free for all residents but is funded by the government. It does, however, receive a Government output for pensioners and indigent. The public health hospital accepts public and private health insurance, as well as self-pay patients.

Private healthcare is also available on the islands, with several private hospitals and clinics offering high-quality medical care. The cost of private healthcare can be high, but it provides faster access to medical care and more advanced medical technology.

In summary,?the cost of living in the Cayman Islands can be high, but it is possible to live on a budget if you are willing to make some compromises. The cost of housing, food, and entertainment can be high, but living tax-free in a tropical paradise might offset these high costs and make relocating to the Caymans Islands worthwhile.

Learn More

Offshore Freedom??is a boutique consulting firm that helps successful investors and entrepreneurs?live and invest tax-free?in the Caribbean and abroad. We help our clients pay fewer taxes, acquire second passports and residences, invest in real estate, and live the Offshore Freedom? lifestyle.

Schedule a consultation?with?Dan Merriam,?and let us help you design the life of your dreams and achieve?Offshore Freedom?. Ask questions and get answers about lifestyle design, tax planning, banking, international real estate, second residencies, or citizenship by investment.

Writer in?Tax Reduction, International Tax Planning, Travel, Citizenship by Investment, Second Residence, Real Estate Investing, Asset Management, Lifestyle Planning, Cost of Living in Cayman Islands, Company Formation, Offshore Banking, Cayman Islands, Asset Protection, Technology, Entrepreneurship

This article is for informational purposes; it should not be considered financial, tax planning or legal advice. Consult a financial or investment professional before making any major financial decisions.