January 28, 2023

Existinglaw

Law for politics

Cayman Island Offshore Banking

The Cayman Islands, located 140 miles south of Cuba in the Caribbean, have long been known as a safe place to open offshore banking accounts and avoid paying taxes.

Consisting of 3 islands, with the largest and most populated being the Grand Cayman, which is 8 miles wide and 22 miles in length, the Cayman Islands have one of the highest GDPs ($40,000) in the world. With a population of over 48,000 residents that are fluent in English and an economy that is largely dependent on banking and tourism, it is an extremely accommodating place for offshore investors.

The local currency is the Cayman dollar which has an exchange rate with the U.S. dollar of approximately US$1 = CI$0.84. Not altogether favorable, but it really only applies to tourism and shouldn’t effect the decision to invest in offshore accounts there.

As a territory of the British, the Queen appoints its Governor every 4 years. There is also an Executive Council with 8 members, 5 of whom are chosen from the 15 elected members of the Legislative Assembly and 3 who are appointed by the Governor.

A legal system of Common Law is followed in the Islands, and is continually evolving. Laws are created on a case-by-case basis, and are formed by precedents set by other courts, and they are obligated to follow the reasoning used in prior related cases.

While most people think of the Cayman Islands as vacation paradise, with its warm clear waters perfect for diving and items available at the “duty-free” store. They also have a following among savvy offshore investors, thanks to the lack of taxation on estates, income and capital gains, whether they are for individuals or corporations.

Offshore Banking regulations and a tax structure that favors the investor has made the these islands one of the better know among non – resident investors.

All the positive aspects of the Cayman Islands come together to make it one of the more well known offshore investment tax havens.