The Cayman Islands, located 140 miles south of Cuba in the Caribbean, have long been known as a safe place to open offshore bank accounts and avoid paying taxes.
Consisting of 3 islands, the largest and most populous being Grand Cayman, which is 8 miles wide and 22 miles long, the Cayman Islands have one of the highest GDPs ($40,000) in the world. With a population of over 48,000 residents who speak English fluently and an economy that relies heavily on banking and tourism, it is a very welcoming place for foreign investors.
The local currency is the Cayman dollar, which has an exchange rate with the US dollar of approximately US$1 = CI$0.84. Not entirely favourable, but it really only applies to tourism and shouldn’t affect the decision to invest in offshore accounts there.
As a territory of the British, the Queen appoints her Governor every 4 years. There is also an Executive Council with 8 members, 5 of whom are elected from the 15 elected members of the Legislative Assembly and 3 who are appointed by the Governor.
In the Islands a legal system of Common Law is followed, and it is in continuous evolution. Laws are created on a case-by-case basis, and are shaped by precedent set by other courts, and are bound to follow the reasoning used in prior related cases.
While most people think of the Cayman Islands as a vacation paradise, with its warm crystal clear waters perfect for snorkeling and items available in the “duty free” shop. They also have a following among savvy offshore investors, thanks to a lack of estate, income and capital gains taxes, whether for individuals or corporations.
Offshore Banking regulations and a tax structure that favors the investor have made these islands one of the best known among non-resident investors.
All the positive aspects of the Cayman Islands come together to make it one of the best known offshore investment tax havens.