Pictured above: Aerial view of George Town, Grand Cayman (Right) and Hamilton, Bermuda (Left) by Mike Davis

Why is Cayman the ideal jurisdiction for crypto and virtual asset companies?

• Tax Neutrality
• Cost of Living
• Quality of life
• Connected Community

Crypto, blockchain and other internationally mobile businesses are relocating offshore at an accelerating rate - pushed by unclear regulation and crackdowns in markets like the US and UK, and pulled by jurisdictions that offer stability, tax neutrality and a faster path to set up.

Two names come up again and again: the Cayman Islands and Bermuda. Both are autonomous British Overseas Territories - under British sovereignty but self-governed, politically stable, and long associated with international business.

On the surface they look interchangeable. But if you look closer, you will see that differences are real, and a couple of them have grown sharper in the last year.

Here's how they stack up, and where Cayman pulls ahead.

Crypto and Digital Assets

This is where Cayman has built a genuine community.

Cayman Tech City - CEC's dedicated special economic zone - is now home to hundreds of virtual-asset companies, including names like Chainlink, Avalanche, Ledn, Aave, and MakerDAO. 

Around them sits a real ecosystem: industry bodies like Digital Cayman, the Cayman Islands Virtual Assets Society (CIVAS) and the Blockchain Association of the Cayman Islands, plus a workforce-development engine in the nonprofit Enterprise Cayman. Digital-asset businesses are regulated under the Virtual Asset (Service Providers) Act and supervised by CIMA, a clear framework rather than a regulatory vacuum.

Bermuda deserves credit here as well. It moved early with its Digital Asset Business Act in 2018 and landed high-profile licensees, including Coinbase. Both islands are serious about digital assets.

The deciding factors tend to be the ones around the regulation - tax, setup speed, cost and community - and that's where Cayman tends to win the head-to-head. If you're weighing the move, our guide to setting up a blockchain or crypto company in Cayman goes deeper.

Cayman Islands vs Bermuda at a Glance

Tax: The Biggest Difference Just Got Bigger

Tax is where the two islands diverge most and the gap widened in 2025.

The Cayman Islands has been tax-neutral for some 300 years. Income tax sits at 0%, alongside 0% capital gains, payroll and sales tax, and that tax neutrality is guaranteed through 2061. There's no corporate income tax of any kind.

Bermuda used to tell a similar story. It still has no personal income or capital gains tax - but as of 1 January 2025, Bermuda introduced a 15% corporate income tax on businesses that belong to large multinational groups (those with annual revenue of €750 million or more), aligning with the OECD's global minimum-tax rules. For a smaller business that threshold won't bite.

The signal, though, is the point: Bermuda has opened the door to corporate taxation, and Cayman hasn't. Add Bermuda's payroll tax and customs duties - neither of which Cayman levies - and the everyday tax burden tilts clearly toward Cayman for most operators.

Cost of Living

Island life comes at a premium either way - but Bermuda is the pricier of the two. By cost-of-living comparisons, Bermuda generally runs higher than Cayman, with groceries and housing the standout gaps. Cayman also puts fewer restrictions and fees on owning cars, homes and condos. Pair that with the absence of income tax, and take-home goes further on Grand Cayman than the sticker prices alone suggest.

Climate and Lifestyle

Here's something people miss about Bermuda: it isn't actually in the tropics. It sits out in the North Atlantic and gets genuinely cool in winter.

Cayman is a true Caribbean island - near-constant temperatures in the mid-80s°F, rarely climbing past the low 90s. For a lot of our members, the weather seals it after the financials do.

Watching a Caribbean sunset from a beach you can walk to from the office (and hunting for the legendary green flash) is the kind of work-life balance that's hard to put a price on. The vibe follows the climate, too. Cayman runs relaxed and friendly, and the business community networks easily across sizes - the largest companies alongside the smallest - which is fertile ground for partnerships and growth.

Pictured above George Town, Grand Cayman left and Hamilton, Bermuda right

Setting Up With Cayman Enterprise City

If your decision is coming down to the wire, the practical setup is the tie-breaker. Cayman Enterprise City lets international businesses establish a genuine physical presence in the special economic zone in a matter of weeks, with everything bundled - company formation, turn-key office space, and fast-tracked five-year Zone Employment Certificates (the zone's equivalent of a work permit, with fees substantially reduced through government concessions).

Did you know?* Work permit fees in Cayman's local economy differ greatly from Zone Employment Certificates (ZEC) which is the Zone’s equivalent of a work permit. Through Cayman Enterprise City, ZEC fees are substantially less which is included in the set up of an office through concessions granted by the Cayman Islands government.

It's a model that's working: more than 450 companies now operate from the zone.

The best way to choose is to talk to people who already made it. We can connect you with members who once sat exactly where you are now - get in touch and we'll talk through the comparison for your specific business. (Weighing other jurisdictions too? See our Cayman vs BVI comparison.)

Frequently Asked Questions

Is Bermuda or the Cayman Islands more expensive?

Both are expensive, but Bermuda generally ranks higher than the Cayman Islands - particularly on groceries and housing. Cayman also has fewer fees and restrictions on owning cars and property.

Does Bermuda have corporate tax?

As of 1 January 2025, Bermuda applies a 15% corporate income tax to businesses that are part of multinational groups with €750 million or more in annual revenue. Smaller businesses fall outside it. The Cayman Islands has no corporate income tax at all.

Is the Cayman Islands really tax-free?

Yes. The Cayman Islands levies no income, corporate, capital gains, payroll or sales tax, and its tax neutrality is committed through 2061.

Cayman or Bermuda for a crypto company?

Both regulate digital assets - Cayman under the VASP Act (CIMA) and Bermuda under its Digital Asset Business Act. Cayman tends to win on tax neutrality, setup speed and the size of its on-island crypto community.

Does Bermuda have local ownership requirements?

Bermuda's "60/40 rule" requires local companies to be majority Bermudian-owned. International businesses get around it by using an exempted company - similar to the Cayman exempted company, which allows 100% foreign ownership.