The Cayman Islands are now ranked as the world’s fifth-largest financial center, following New York, Tokyo, London, and Hong Kong. Known as a major tax haven, this offshore destination is located 1,000 km south of Florida, USA, and consists of three main islands covering approximately 260 sq. km. The largest island, ‘Grand Cayman,’ is home to the majority of the 52,601 residents, with George Town serving as the capital.

The Cayman Islands have established themselves as an impressive international financial and banking center, hosting forty of the world’s largest banks with representative offices or subsidiary operations. Remarkably, the number of registered companies in the Caymans exceeds the resident population, reaching approximately 200,000 companies as of 2013. The jurisdiction boasts around 580 banks and trusts (2019), 830 captive insurance companies (January 2019), over 10,500 mutual funds (2018), and more than sixty percent of the world’s offshore hedge funds, all taking advantage of the tax-free environment. The total assets in the Cayman Islands banking system surpass $1.7 trillion USD equivalent. Notably, the jurisdiction offers exceptional support to the banking sector through the presence of renowned international accounting and law firms.

The Cayman Islands remain a British crown colony, with the United Kingdom Parliament retaining legislative authority. The jurisdiction operates under a stable governance structure, featuring an appointed Governor from London and an elected legislature without political parties. The legal system is based on Common Law, derived from English Common Law, which provides a reliable foundation for the banking and company formation industries. Although the Cayman Islands have relaxed some rules regarding bank secrecy under pressure from countries like the United States and Britain, measures have been implemented to ensure the banking system is not exploited by criminal organizations in drug trafficking investigations.

The Cayman Islands have maintained a stable democratic government since 1831, with minimal intervention in the economy and commerce. Internationally recognized for their high-quality financial services, the Cayman Islands have become a leader in global finance. The offshore financial industry has flourished for over 40 years, supported by innovative national legislation that facilitates the provision of world-class financial services. Collaboration between the private sector and the government is facilitated through the ‘Private Sector Consultative Committee,’ allowing for policy and legislation formulation.

The Cayman Islands have a robust economy with full employment, primarily driven by the financial services sector and tourism. The jurisdiction offers modern international telecommunications services and convenient commercial airline connections, with Miami just a short one-hour flight away. English is the official language, and the national currency is the Caymanian dollar (KYD), which has a fixed exchange rate of 1 KYD to 1.219 US dollars (USD). Exchange controls are currently not in place. The Cayman Islands impose no direct taxes on individuals, corporations, or trusts. There are no capital gains taxes, inheritance taxes, property taxes, or gift taxes. With per capita incomes at $43,800 USD, the highest in the Caribbean and on par with the United States, prosperity is evident throughout the jurisdiction, reflected in the development of new luxury hotels, condominiums, vehicles, and restaurants.