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Cayman Islands Tax Haven Cayman Islands Tax Haven

The Cayman Islands Tax Haven is a British Overseas Territory located in the western Caribbean Sea. The territory consists of the three islands of Grand Cayman, Cayman Brac, and Little Cayman, situated south of Cuba and northwest of Jamaica. It is considered a part of the geographic Western Caribbean Zone. The Islands are a major world offshore financial centre and well known tax haven.

As of 2009 the population is estimated at 55,700 with more than 100 nationalities represented. Around half of the population is of Caymanian descent. About 60% of the population is of mixed race (mostly mixed African-European).

The capital of the Cayman Islands Tax Haven is George Town, which is located on the southwest coast of Grand Cayman.

Cayman Islands Tax Haven

The latest population estimate of the Cayman Islands is about 55,700 as of 2009, representing a mix of more than 100 nationalities. Out of that number, about half are of Caymanian descent. About 60% of the population is of mixed race (mostly mixed African-European). The islands are almost entirely Christian, with considerable numbers of Presbyterians and Catholics. Most of the population resides on Grand Cayman, followed by Cayman Brac and Little Cayman.

 

Cayman Taxation

There is no direct taxation enforced on Cayman residents and companies The government obtains the bulk of its income from indirect taxation. Duty at is levied against most imported goods, which is typically in the range of 22% to 25%. Some goods are exempted like baby formula, books, cameras and certain items at a reduced rate of 5%. Duty on automobiles depends the age and value and can be up to 40% for costly models. Financial institutions that operate in the islands pay flat licensing fees to the government, in addition to work permit fees on foreign labor. A 10% government tax is placed on all tourist accommodations in addition to US$25.00 departure tax each tourist pays upon leaving the island

The Cayman Islands Tax Haven is the fifth-largest banking centre in the world, with $1.5 trillion in banking liabilities. There are 279 banks (as of June 2008), 19 of which are licensed to conduct banking activities with domestic (Cayman-based) and international clients, the remaining 260 are licensed to operate on an international basis with only limited domestic activity. Financial services generated CI$1.2 billion of GDP in 2007 (55% of the total economy), 36% of all employment and 40% of all government revenue. In 2010, the country ranked fifth internationally in terms of value of liabilities booked in the Cayman Islands and sixth in terms of assets booked. It has branches of 40 of the world’s 50 largest banks. This Tax Haven is the second largest captive domicile in the world with more than 700 captives, writing more than US$7.7 billion of premiums and with US$36.8 billion of assets under management.

Cayman Islands Banking


Tourism is also a mainstay, making up around 70% of GDP and 75% of foreign currency earnings. The tourist industry is aimed at the luxury market and caters mainly to visitors from North America. Total tourist arrivals exceeded 1.9 million in 2008, with about half from the US. About 90% of the islands' food and consumer goods must be imported. The Caymanians enjoy one of the highest outputs per capita and one of the highest standards of living in the world.

Government Executive Branch

Chief of State: Queen ELIZABETH II (since 6 February 1952); represented by Governor Duncan TAYLOR (since 15 January 2010) head of government: Premier McKeeva BUSH  (since 6 November 2009) cabinet: The Cabinet (six members are appointed by the governor on the advice of the premier, selected from among the elected members of the Legislative Assembly elections: the monarchy is hereditary; the governor appointed by the monarch; following legislative elections, the leader of the majority party or coalition appointed by the governor as premier.

Cayman Lawyers

Cayman lawyers provide all of the major tax haven services, many have branches in other countries.

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