Cayman Islands

Tax residency in Cayman Islands is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign-sourced income is broadly exempt from local taxation for qualifying residents, subject to meeting the relevant conditions under domestic law and applicable treaties. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution. Special tax regimes available include: Cayman exempted company, SPC (Segregated Portfolio Company), LLC. There is no personal income tax in the Cayman Islands. A Certificate of Tax Exemption can be obtained for Cayman entities, guaranteeing no taxation for up to 30 years. Cayman Islands maintains a network of approximately 0 double taxation treaties, which may reduce withholding rates and provide certainty on income sourcing.

Zero across all categories: no income tax, no corporate tax, no capital gains tax, no withholding tax, no inheritance tax, no VAT. CIMA fees apply to regulated entities.

The standard corporate income tax rate is 0%. Company formation typically takes approximately 3 working days, at an estimated cost of €3,000. The administrative process is considered straightforward, with minimal bureaucratic friction. Ongoing annual compliance costs are estimated at €5,000, covering statutory filings, accounting, and audit obligations where applicable. The world's leading domicile for investment funds, hedge funds, and SPVs. Over 11,000 registered funds. CIMA-regulated entities have global credibility.

Account opening in Cayman Islands can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Cayman has world-class financial services infrastructure. Banking is well-developed for corporate and fund accounts but account opening for individuals requires substance or residency. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Cayman Islands is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules. Cayman Islands participates in CRS (Common Reporting Standard), FATCA, meaning financial institutions will automatically exchange account information with relevant tax authorities. OECD compliance rating: compliant. Points to consider: EU grey-listed; Intense international scrutiny as a recognised tax haven; No double tax treaties; Substance legislation requires genuine activity for holding companies. Cayman has implemented OECD-compliant substance legislation and exchanges information with 100+ jurisdictions. EU grey listing persists due to the zero-tax environment, but compliance standards are high.

Cayman has implemented OECD-compliant substance legislation and exchanges information with 100+ jurisdictions. EU grey listing persists due to the zero-tax environment, but compliance standards are high.

Based on our scoring model, Cayman Islands ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers an excellent proposition for founder / entrepreneur (score: 83/100). It offers an excellent proposition for high net worth individual (score: 82/100).