Finances are always a big concern for those who are considering an expat life overseas, but Cayman makes it easy with a welcoming approach to taxes that’s accessible to foreign citizens from across the globe. That’s part of the beauty of establishing your business in Cayman Enterprise City: Your financial concerns are limited, and you’ll enjoy some of the finest banking in the world in a tax-neutral environment. Both personal and business finances can flourish under this appealing system. There’s also something wonderful about not having 30% or more deducted from your pay packet to go towards taxes.
Attractive Tax Structure
The Cayman Islands’ tax-neutral status is the stuff of legend, and it’s a major part of this British Overseas Territory’s international identity. Native and expat residents of Cayman enjoy freedom from income and other direct taxes, providing great incentive for the financially ambitious to put down roots in the islands. The Cayman government collects income through indirect means instead.
While your Cayman income and capital gains aren’t taxed by the islands’ government, it’s a good idea to stay abreast of tax laws from your country of origin and speak to an expert in that field. Some citizens, such as Americans, may be obliged to pay income and other taxes to their home country, even when they work overseas. Although there is a very generous tax free allowance for Americans who are non-resident in the US, and a US based tax expert can advise on the specific allowance sum. This added benefit of the tax-neutral structure is yet another of the many qualities that makes life in Cayman so appealing for expats.
Banking is a major industry in Cayman because the islands offer such an attractive tax structure for overseas clientele. Expats should have no problem finding a good bank to use for both business and personal finances. In fact, Cayman is so attractive to the international banking community that foreign banks operate branches here. You may even be able to working with the same bank you used in your home country, such a RBC or Scotiabank.
If that option isn’t available to you, most Class A banks in Cayman offer modern services such as online banking and debit and ATM cards make withdrawals easy, even when you’re visiting family off the islands in your home country, or travelling overseas on business.
Contrary to common belief, opening a Cayman bank account is not as easy as one would think and applicants have to go through a stringent due diligence process. One great benefit is that the Cayman Islands are English speaking and therefore, there are no language barriers and helpful banking staff are on hand, to assist you through the paperwork process. It can take time to set up an account, so be sure to start the process early.