1. Home
  2. Profile

Cayman Islands / Profile

Profile

Location and infrastructure

The Cayman Islands are a British Overseas Territory, three-island group (Grand Cayman, Cayman Brac, Little Cayman) in Caribbean Sea, 240 km south of Cuba and 268 km northwest of Jamaica.

The Cayman Islands are considered to be part of the geographic Western Caribbean Zone as well as the Greater Antilles. 

Population

The Cayman Islands have a population of approximately 53,737 (July 2013 est.).

Language

British English is the most commonly spoken language in the Cayman Islands, albeit with a distinctive Caymanian dialect. Jamaican patois is also commonly spoken in the Cayman Islands, and certain words have been integrated into the speech of younger Caymanian generations.

Currency

The local currency is the Cayman Islands Dollar (CI$).

Tax system

SUMMARY

Corporate Income Tax Rate (%): 0

Capital Gains Tax Rate (%): 0

Branch Tax Rate (%): 0

Withholding Tax (%)

  • Dividends: 0
  • Interest: 0
  • Royalties from Patents, Know-how, etc.: 0
  • Branch Remittance Tax: 0

Double tax treaties

As of October 2011, the Cayman Islands has entered into bilateral tax information arrangements with Argentina, Aruba, Australia, Canada, China, Curaçao, Denmark, the Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Japan, Mexico, the Netherlands, New Zealand, Norway, Portugal, Sint Maarten, South Africa, Sweden, the United Kingdom and the United States. It has also agreed to share information under the unilateral mechanism with Austria, Belgium, the Czech Republic, Germany, Japan, Luxembourg, the Slovak Republic, South Africa and Switzerland.

The Cayman Islands has also entered into a double tax treaty with the United Kingdom.

Legal system

The substantive law of the Cayman Islands is based on English common law with the addition of local statutes which have, in many respects, changed and updated the common law. 

The islands have a good legal and judicial system, constantly being advanced to meet the demands of an ever evolving society.

Banking

Regulated by the Cayman Islands Monetary Authority (CIMA), banking in the Cayman Islands is a major part of Cayman's financial sector, with 222 banks licensed and over US$1 trillion in international assets booked through the Islands as of 31 March 2013. 

The quality of Cayman's financial industry is recognized worldwide and 40 of the world's top 50 banks hold licences in Cayman. The banking sector hires highly skilled professionals and is one of the most prominent employers on the Island. 

Cayman Islands banks are bound by strict anti-money laundering laws, which together with know-your-customer (KYC) regulations, are recognised as meeting or exceeding those of all major onshore jurisdictions.

Types of companies

– Cayman Islands Ordinary Resident Company

– Cayman Islands Exempt Company

– Cayman Islands Ordinary Non-Resident Company

– Cayman Islands Limited Duration Exempt Company 

– Cayman Islands Foreign Company 

– Cayman Islands Exempt Limited Partnership

– Cayman Islands Limited Partnership

– Cayman Islands Trusts

Changes to the tax laws and other applicable rules in various countries covered by this publication may be proposed. Therefore, readers should contact local specialized firms to obtain further information.