It is now the norm for yacht owners to register their vessels in International Offshore Financial Centres (IOFCs) across the globe, with each location offering distinct advantages — the most popular of which includes tax savings.. The savings alone in fees related to taxes, registration, and VAT are enough to encourage shipping vessels to register offshore, but the Cayman Islands now offers even more to yacht owners.
The Cayman Islands has set itself above other tax-free locations such as Malta, Singapore, and Cyprus by offering yacht owners and shipping companies a genuine physical presence in which to place their staff in turnkey offices and generate legitimate tax-free international business income. This is accomplished through Cayman Maritime Services Park (CMSP), a component of Cayman Enterprise City (CEC) set up specifically for businesses within the maritime industry so they can take advantage of the benefits offer by operating from the award-winning Special Economic Zone. The Cayman Islands Government has granted appealing concessions to such companies.
Location, Location, Location
Companies with CMSP are subject to no local income tax, capital gains tax, corporate tax, or sales taxes, and import duties. What’s more, friendly immigration laws distinctive of the Cayman Islands maritime services park allow companies to get 5 year renewable work/residency visas for their staff within 5 working days.
Flying the Flag
Yacht owners who establish within the CMSP — generally a short three-week process — can also register their vessel with the Cayman Islands Shipping Registry (CISR). CISR offers distinct advantages to yacht owners. First, it is a Category 1 British Registry within the Red Ensign Group and considered first class as one of the top flags of the world by the International Chamber of Shipping (ICS). With 15 different locations around the world, yacht owners are afforded 24/7 service. Additionally, the CISR is white-listed by all major ports around the world and has low-risk status. This means considerably fewer inspections, less hassle, more support, and smoother sailing.