Cayman Government Moves to Restrict Foreign-owned Property Development Business

• The government of Cayman is working to restrict the grant of foreign business licences to most property development companies to protect local firms from international competition within the territory. Premier André Ebanks told the news press on Tuesday, May 5, 2026, that the government believes Cayman has enough local expertise that it does not need to approve more licences for foreign-owned businesses in that sector.
• That said, exceptions could be made for developments that involve cutting-edge methods or where the scale of the project is beyond the capacity of the firms on the island. His comments came as the government announced it is drafting legislation to allow the Cabinet to place a moratorium on the granting of Local Companies Control Licenses (LCCLs) in any sector.
• The aim is to target real estate development and property companies, which currently account for around half of all LCCLs. The LCCL regime is designed to allow exceptions to the rule that any business operating in Cayman must have at least 60% local ownership.
• The legislation will continue to be used in areas of the economy where specific expertise or global reach is required. International airlines, major branded hotels and advisory firms like EY and KPMG all operate under LCCLs. Healthcare providers like the Mayo Clinic referral office and Baptist Health operate under similar exemptions. Banks and law firms, however, are licensed separately.
• The Trade and Business Licensing Board, which assesses LCCL applications, has already been pushing back on LCCL applications in the real estate development or property management category. Chair Anne Storie told the Compass. “This category is overrun. We’ve seen an excessive amount of applications come through, and at this stage, we don’t see the need for any foreign ownership of these real estate development companies.”
• The surge in international interest in Cayman’s real estate market has been fueled by by strong demand from overseas investors, wealthy migrants and luxury buyers, which saw property sales top US$1.07Bn in 2025, exceeding the previous record set in 2021 by US$42Mn. Beyond its natural appeal, Cayman attracts global development firms through a foundational tax-neutral environment with no corporate or capital gains taxes, a transparent legal system, and the absence of restrictions on foreign property ownership. This has been further bolstered by the Golden Visa program, which offers residency for investments exceeding US$2.4Mn, and a thriving synergy with the financial services sector that has created sustained demand for luxury residential and commercial high-rises.
• Storie said the moratorium would also spare applicants the cost and frustration of pursuing applications that were unlikely to succeed. Existing LCCL holders will not be immediately affected. Storie confirmed that renewals would not be caught by the moratorium, saying they “will be reviewed individually depending on the stage of the project.”

(Sources: Cayman Compass, La Vida Golden Visas, Provenance Properties of Cayman Ltd.)