The British Overseas Territory homes more than 80,000 registered companies, at least US$2.6 trillion in deposits, and more than three quarters of the world’s hedge funds!
With only 57,000 inhabitants, The Cayman Islands is a considered tax haven as companies and individuals aren’t forced to pay any direct tax, whilst financial institutions contribute a flat rate fee in order to operate in the country.
British tax treaties and strong privacy protections that have effect in this investors’ paradise have made it a top destination for global financial institutions. The Cayman Islands are considered a low-risk country to invest and experienced in providing financial services.
One of the main benefits for someone to invest through the Caymans is that there is no double tax charged. In this case, investors are taxed on their profits in their country of residence only.
“It is not illegal to deal with any of these countries. It is not illegal to have a bank account in these jurisdictions. In a global economy, it is accepted as a normal part of doing business and maximising returns to investors, whether they are large super funds, companies, or individuals.”
– Alex Malley, Chief Executive of accounting peak body CPA Australia
According to the US National Bureau of Economics’ data, an astonishing 15% of all the countries in the world could be considered tax havens. This includes Luxembourg, Hong Kong, Ireland, Netherlands Antilles, the Isle of Man, Delaware state in the US and others.