Relocation intelligence

🇰🇾 Moving to Cayman Islands: tax, residency and cost of living

The Cayman Islands impose no direct taxation whatsoever: 0% personal income tax, 0% corporate tax, no capital gains, no wealth or inheritance tax, and no VAT. The only mandatory payroll deductions are a 5% pension contribution (on earnings up to KYD 87,000/year) and the employee share of compulsory private health insurance. Government revenue comes from import duties, work permit fees and stamp duty.

Thinking of moving to Cayman Islands? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
0%
Corporate tax
0%
Capital gains
0%
Wealth tax
No
Inheritance tax
No
Cost of living index
140
Safety
8/10
Internet quality
8/10
Visa-free destinations
186
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

No direct taxes. The only mandatory deductions are pension at 5% up to KYD 87,000/year (max KYD 4,350) and the employee share of private health insurance (~KYD 74/month). Government revenue comes from import duties (22-27%) and stamp duty.

Residency and visas

Residence is usually via a work permit. Wealthy individuals can obtain a residency certificate through investment (from roughly KYD 1 million). Permanent residence after about 8 years; Caymanian status and British citizenship take considerably longer.

Property ownership

Foreigners may freely buy residential property with no restrictions and no annual property tax. A one-time stamp duty of 7.5% applies on purchase.

Cost of living and quality of life

Caribbean island living with high levels of safety and services, but very high cost of living, mandatory private healthcare and hurricane risk.

Passport and mobility

Caymanians travel on a British (BOTC/British) passport with very broad visa-free access. Work permits are required for non-Caymanian workers.

Why people move to Cayman Islands

  • Fully tax-free income

    Zero income, corporate and capital gains tax. Your net pay is nearly identical to gross, reduced only by a 5% pension contribution and a health insurance premium.

  • Stable currency and strong financial hub

    The KYD is pegged to the US dollar (1 KYD = 1.20 USD), and the islands are an established international financial centre with strong infrastructure, safety and high-quality private healthcare.

Honest trade-offs

  • De kosten van levensonderhoud zijn zeer hoog. Numbeo plaatst de Kaaimaneilanden onder de duurste plekken ter wereld, met prijzen die ruim boven die van grote Amerikaanse steden liggen.
  • Hoewel er geen btw bestaat, heft de overheid invoerrechten van doorgaans 22 tot 27 procent op vrijwel alle geimporteerde goederen, waardoor dagelijkse boodschappen en auto's fors duurder zijn.
  • Een private ziektekostenverzekering is wettelijk verplicht en de werknemer betaalt minimaal de helft van de premie plus alle kosten voor gezinsleden. Er is geen publiek zorgstelsel en de zorgkosten zijn hoog.
  • Permanent verblijf en de Caymaanse status zijn traag en moeilijk te verkrijgen. De route voor personen met onafhankelijke middelen vereist een vastgoed- of vermogensinvestering van ongeveer 1 miljoen KYD of meer plus een aantoonbaar jaarinkomen.
  • De eilanden liggen in de orkaangordel van het Caribisch gebied en lopen jaarlijks risico op zware tropische stormen, zoals orkaan Ivan in 2004 die enorme schade aanrichtte.

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Sources

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