Cayman Islands Tax. Following the abolition in 1985 of an annual head tax of CI$10 on all adult male residents up to 60 years, there are no direct taxes in the Cayman Islands. There is no income tax, company or corporation tax, inheritance tax, capital gains or gift tax.
There are no property taxes or rates, and no controls on the foreign ownership of property and land.
The government charges stamp duty of 6 per cent (in most areas, but 7.5 per cent in a few) on the value of real estate at sale, with reduced rates available for Caymanians. There is a 1 per cent fee payable on mortgages of less than CI$300,000, and 1 1/2 per cent on mortgages of CI$300,000 or higher.
All About Cayman Islands Tax
Located in Western Caribbean; Cayman Islands in an exquisite destination for both holidays and lucrative business opportunities. The British territory is broken into three wonderful islands, namely Little Cayman, Grand Cayman and Cayman Brac. With less than 60,000 people in the island, Cayman Island has splendid resources and regulations to support business owners. It is safe, politically stable and financially secure. Of course, good infrastructure and communication systems are key selling points of the Cayman Islands. With this being said, what makes Cayman Islands a tax haven? Read on, to find a definite answer to this question!
How Has Cayman Islands Changed?
Over the past few years, Cayman Islands has evolved to be one of the most popular tax havens in the world. It is completely different from many other so-called-tax-havens. The destination doesn’t have any corporate tax. This makes Cayman Islands an idyllic destination for multinational corporations. It helps multinational companies shield all or at least some of its profits from taxes. After all, this is exactly what tax havens are supposed to do! By definition, tax havens have non-existent or very friendly tax rules. These laws can ask you to pay tax as low as 2%! Likewise, you will not be asked to pay sales, corporate, gift, inheritance or estate tax. In simpler words, the effective income tax of businesses would be zero.
A Tax Friendly Island – Cayman Islands Tax
Cayman Islands became a complete tax haven after the abolition during mid-1980s. This was when an annual head tax of just CI$ 10 was charged on adults up to 60 years. There is no such thing as direct tax in Cayman Islands. As mentioned previously, you will not pay any gift, income, company/corporation, capital gains or inheritance tax too. Since the island doesn’t ask for property tax, it is quite easy to buy properties and real estate in Cayman Islands. Conversely, a governmental stamp duty charge of 6% the real estate property’s value would be asked from Caymanians only. Unlike nations like US and England where corporate taxes can be as high as 35%, Cayman Islands is exceptionally tax friendly on investors.
Apart from tax benefits, here are few reasons on why you should start a Cayman Islands Company:
1) The minimum capital requirements for Cayman Islands offshore company formation are not defined.
2) The need for annual audits, reports and accounts is not present.
3) You can manage the Cayman Islands Corporate from anywhere!