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A quick guide to Cayman Islands banking

Cayman Islands Banking

A quick guide to Cayman Islands banking

The Cayman Islands are known the world over for offshore banking and financial services—and for 102 square miles of sand-fringed tropical paradise, it’s quite a feat to have become one of the world’s major financial centres and, in fact, the sixth largest offshore financial locus. The reasons for this are a favourable tax regime and Cayman Islands banking. Literally thousands of companies are registered here to take advantage of one of the world’s best known tax havens and suppliers of specialised corporate financial services.

Why do companies use Cayman Islands banking services?

The advantages of registering a company on the Cayman Islands are many. Not only is it a tax haven, but it also offers world class asset management, tax consultancy and a wide range of corporate financial services and instruments. However, while its reputation may have been somewhat racy in the past, today this British Overseas Territory is one of the most respected and professional tax neutral administrations in the world. The companies that use Cayman Islands banking services do so to maximise their international tax benefits, not to cheat the system.

The history of Cayman Islands banking

There are more companies on the Cayman Islands than there are people, so how did Cayman Islands banking start? It’s a great story. Back in 1794, George III’s son, Prince William, was rescued from a shipwreck. As a reward, the King vowed never to introduce taxes to the island. No one really knows if this is true or not, but the tradition of no income tax, no capital gains tax and no wealth tax certainly goes back a long way and is a tradition in which the islanders take great pride.

Cayman Islands banking facts and figures

  • About 50 percent of the population of 56,000 are foreigners, from more than 100 other nations.
  • Cayman Islands banking accounts for more than half of Cayman’s gross domestic product and provides more than a third of all the jobs on the islands.
  • There are 212 banks based here with assets of more than US$1.5 trillion. Over 80 percent of the world’s leading banks have subsidiaries registered in the jurisdiction.
  • As well as banks, there are numerous insurance companies based here and over 10,000 hedge funds managing US$1 trillion in assets.
  • It is a centre for companies insuring against medical malpractice and workers’ compensation accounts.
  • The Cayman Islands are in the top 15 countries in the world when it comes to GDP per head.

If you are a British or an American expat, you might reap substantial benefits from Cayman Island banking and asset management. For advice on suitability, talk to a Pryce Warner international finance expert today.

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