Cayman Islands, the ultimate paradise

Almost everyone has heard the name "Cayman Islands". Have you ever wondered why? Easy. This island is the king of kings when it comes to tropical paradises and financial freedom, our favorite combination.

Known as the turquoise paradise, these three semi-virgin islands are part of the British overseas territory. This piece of heaven is barely 264 km2 and is located in the middle of the Caribbean Sea, right between Jamaica and Cuba, where it welcomes cruise ships loaded with tourists and offshore investors who stop by every day on its main island, Grand Cayman.

Accompanying the main island are the two jewels that complete the most stunning trinity in the entire Caribbean: the islands of Little Cayman and Cayman Brac.

This dream place attracts tourists and investors alike because of its beauty and its advantages, such as the fact that there is no income tax on its territory. 

No taxes: this is the definite feature of the Cayman Islands and the ones investors love the most. At the end of the year, all your profits are yours. The islands have no income tax, property tax, or capital gains tax. Ultimate economic freedom.

High standard of living: the Cayman Islands have the highest standards of living in the Caribbean, in fact, they have the eighth-largest GDP per capita in the world. This means that a large percentage of residents feel comfortable and could buy any product or service offered.

Government stability: Another good reason why the Cayman Islands is a very attractive place for investors is that the government is stable, so there is no fear of the effect of political instability on business owners.

Good infrastructure: you will also find a sophisticated infrastructure in the Cayman Islands that will help your business run more smoothly.

A path towards British citizenship: If you become a Caymanian permanent resident (read how here), you can become a British citizen five years later and receive one of the best passports in the world and live in the UK.

Strong economy: Another benefit of doing business in the Cayman Islands is that they have a very strong economy due to the international banking operations there.

Business Privacy: Since you will not pay taxes, you are not required to expose your business records to any government agency. You can maintain the privacy of your business as you wish. In addition, there are no investment restrictions in the Cayman Islands, so you can invest in any business or market you wish.

The exempt company: The most commonly used legal form by non-residents is the 'Cayman Islands Exempt Company', which as its name suggests, is tax exempt. This entity provides a very flexible corporate structure, with no requirement for resident directors or other local corporate officers, maximum protection of director and shareholder privacy and simplified accounting requirements.

Banking secrecy: the names of the beneficiaries of offshore companies registered in the Cayman Islands are not entered in any public register and there is no obligation to disclose the identity of the beneficiaries. Offshore companies are not required by law to file their annual financial reports with the authorities but are required to file an annual return. 

Caymans Island’s Freedom rating

Mundo's country rating is essentially a freedom index whereby our team of specialists rates a combination of freedoms, which include freedom from violence and personal attacks, financial freedom from high taxes, business freedom from government interference, and especially from socialism and communism.

Here's what you should know about setting up a company in the Cayman Islands

The Cayman Islands company gains its mystique and allure from several intangible factors that make it as essential to your corporate strategy as well tea is to having high tea at Tiffany's. 

Like the British Virgin Islands, the Caymans Islands has been the incorporation centre of choice for the head offices and holding strictures of many of the world's largest companies, banks, financial institutions, and family offices. 

Unlike many of their poorer cousins who tried to emulate the Caymans’ corporate regime, our jurisdiction has highly trained legal professionals and an excellent banking system which is highly liquid.

Many offshore jurisdictions in weaker countries have regulators afraid of the OECD, not so the Caymans. 

So, if you want a well-regulated, highly competent, and most importantly, completely tax-free corporate system, you need to look no further than the Caymans.

Some advantages offered by the Cayman Islands:

  • No capital gains tax, corporate tax, withholding tax, property tax, payroll tax, or employee income tax;
  • No exchange control allows free transfer of funds to and from the islands, in any currency, with equal freedom to open and maintain accounts in any currency;
  • No reserve asset requirements;
  • Confidentiality of financial and banking information by law;
  • Competitiveness in the Euro markets;
  • A first-level banking environment with a range of products to cover any need;
  • An economy that admits excellent investment opportunities in various industries; and
  • The political stability that comes with being a British overseas jurisdiction.

Everything you need to know about financial licences in the Cayman Islands

We would like to set the tone of this section by giving you in advance the reasons why the Cayman financial licences are superior to those in any other jurisdiction. Here we go:

  • To begin with, we tell you that the Cayman Islands have no direct taxes;
  • This jurisdiction has a banking system that stands face to face with the most sophisticated jurisdictions in Europe and Asia;
  • The world's largest financial services companies have a presence in Cayman territory;
  • This jurisdiction is home to 70% of the world's registered funds, according to some estimates;
  • The Cayman jurisdiction’s reputation as the international financial centre par excellence attracts a steady flow of investors to the Islands;
  • There are various licences available to you: from banking licences to digital asset management licences such as cryptocurrencies;
  • Speaking of digital asset licensing, in the Cayman Islands, there is a type of licence called a sandbox, which is one of the most advanced and favorable legal frameworks for regulating this type of activity;
  • The Cayman telecommunications infrastructure will allow you to carry out any financial service provision without any problem; and
  • Caymani regulations comply with the highest international standards and allow you access to the Cayman Islands’ tax advantages.

The global coronavirus crisis has given carte blanche to governments around the world to increase their restrictions and break into the operation of the financial system without and still maintain scruples. There are fewer and fewer viable places to keep a financial institution open without suffering enormous pressure from governments.

While most governments in the world are taking advantage of the situation to promote anti-market initiatives that hurt the private enterprise, the Cayman Islands is at the other end of the spectrum. 

The Cayman Islands are undoubtedly one of the safest places in the world to acquire a financial licence, whether it is banking, virtual asset management, or securities’ investment business licences.

Setting up a fund in the Cayman Islands

Investors who have an eye on the Cayman Islands generally consider establishing an offshore fund.

In fact, some estimates indicate that this jurisdiction is home to about 70% of the world's funds.

Today, the Cayman Islands is one of the world’s leading offshore jurisdictions and is particularly renowned for establishing investment funds.

Additionally, Cayman Islands entities are customarily used for transactions of all types, including equity, debt, insurance, capital markets transactions, mergers and acquisitions, and joint ventures. 

The Cayman Islands have no direct taxes of any kind.

There is no corporation tax, capital gains tax, profits tax or income tax.

The above advantages work like a magnet to attract hedge funds, which are tax free and can pay

profits to their investors without making the deductions that other jurisdictions require.

Without further ado, here is a summary of the main reasons why you should consider opening a fund in the Cayman Islands.

  1. Variety: in the Cayman Islands, there are several types of funds that are very flexible to the needs of each investor, whether it be a registered, managed, and licensed, or private fund.
  2. A foolproof financial infrastructure: The Cayman Islands are one of the world's premier international financial centres. Therefore, the jurisdiction has a financial infrastructure that minimises risks and promotes ease of doing business.
  3. Good political-economic climate: The islands are not called a paradise just because of their natural wonders. The Cayman government enjoys well-established political stability, which translates into a favorable and relatively predictable economic climate.
  4. A favorable tax scheme: In this advantageous jurisdiction, there are no capital gains, income, profits, or withholding taxes.
  5. A secure jurisdiction: The Cayman Islands have consolidated regulations and a reputation that positions this jurisdiction as one of the safest place to do business in the world.
  6. Simple requirements: The requirements to establish and manage a fund in the Cayman Islands are so simple that it is challenging to find a jurisdiction that can compete when it is comes convenience.

Being a resident of the Cayman Islands, everything you need to know

How can you protect yourself from the growing insecurity in which many countries in the world are immersed?

One essential way is by relocating to a jurisdiction that guarantees you the lifestyle you desire and the possibility of obtaining an advantageous second citizenship after a qualifying period.

Due to its unique status as a British Overseas Territory, The Cayman Is-lands remain one of the few places on earth where residents can apply for a British Passport after completing the formalities of being granted residen-cy and living on the island for five years. 

The combination of having the right to obtain what is probably the most prestigious citizenship in the world today and having tax residency in an in-ternational financial center with the best tax policy imaginable is like the marriage between a Caspian Sea caviar and a bottle of the finest Cham-pagne Extra Brut. It is an option for those with the most extremely discern-ing tastes.

However, contrary to what one might think, residing in the Cayman Islands is not that expensive.

This jurisdiction allows for a lifestyle that, for many, beats Monaco, Switzerland, and the French Riviera.

This is why:

  • The best tax optimization you can get: the main reason why the Cayman Islands is positioned as the most exclusive international fi-nancial center for investors and high net worth individuals around the world is because of their tax policy, the most prominent element of which is that there is no tax on income, capital gains, property or companies.
  • First world lifestyle: one thing that amazes us about life in the Cayman Islands is that this jurisdiction's per capita GDP exceeds the per capita GDP of the entire European Union. This is a place designed to experience the highest pleasure and freedom threshold.
  • It is within reach of many airports: unlike other island paradises that you reach after a flight with three connections, the Cayman Is-lands are a significant destination for significant airports in Latin Amer-ica, Canada, the east coast of the United States, and some major cit-ies in Europe.
  • It is a British overseas territory: one of the aspects that discour-age investors from the Caribbean is that governments in the region are unstable.

However, that is not a problem in the Cayman Islands, which offers the political and economic stability that other jurisdictions in the region cannot achieve. 

Banking in the Cayman Islands

We are excited to tell you that Mundo, NTL, and one of the most recognized banking experts in the Cayman Islands have joined forces to offer you a truly compelling opportunity.

Just for our distinguished readers, we are offering a package that combines corporate and banking services in the Cayman Islands. In other words, it has never been easier to have the help you need to open a company (no matter what its legal structure is) and a bank account in this turquoise paradise.

The natural goodness of the Cayman Islands made it worthy of the name "turquoise paradise". And in the same way, their incredible banking system has given these islands the title of "the Swiss of the Caribbean".

It is worth noting that in the Cayman Islands it is not uncommon for banks to allow you to open an account without visiting their offices. Almost all communication is done through email and video calls. This is very convenient. 

Most offshore banks are branches, subsidiaries, and affiliates of international financial institutions, with 40 of the 50 largest banks in the world present in the islands. 

Other reasons why the Cayman Islands are the quintessential banking destination for those looking for the best of the best are:

Total discretion: in this beautiful jurisdiction the names of the beneficiaries of offshore companies registered here, are not incorporated in any public registry and there is no obligation to disclose the identity of the beneficiaries. The Cayman Islands does not have double taxation agreements with any country and banks protect the identity of the people who entrust them with the custody of their assets and money. However, as a CRS country, the fund information will be shared with the tax authorities of your country of origin. 

Stability: the Cayman Islands are one of the main international financial centers, so, as expected, the economic sector of banking and services is exceedingly developed. This will give you the certainty that your money is safe in a stable environment.

Forget about taxes: along with their wonderful economic outlook, there is another aspect that puts the Cayman Islands on a higher level than many other jurisdictions. The islands have no income tax, property tax, or capital gains tax. 

Convenience to open your account: another advantage of opening a bank account in the Cayman Islands is that you can open it without physical presence. Its banks are an example of high-quality online banking that allows the client to perform any transaction. There is also the possibility to request any type of banking services such as foreign exchange accounts, credit cards, and more. 

Timeframe: opening a bank account in the Cayman Islands can take from one to five weeks, depending on how agile the expert you choose is to advise you and how soon you can meet the requirements. Although the bank may delay the process if they require more information.

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