Cayman Islands Investment Argument

Cayman Islands are fast attracting the eyes of global discerning property investors. Where else in the world does anyone do a better job of combining safe, vibrant luxury living in such stunning surroundings, together with a world-class financial industry?

Cayman Islands boasts political stability, excellent transportation and communications and the highest per capita income and standard of living in the Caribbean region.

On the financial side, Cayman Islands has the 10th most valued currency in the world, its own stock exchange, no taxes on profits, capital gains or income and no withholding taxes. Together, it spells an attractive return on investment.

Let’s take a more in-depth look into what makes Cayman Islands such an interesting option for those searching for the next property investment.
 

Strong, tourism-driven economy

Cayman Islands have enjoyed stable economic prosperity for many years, with steady GDP growth fuelled by tourists who are attracted to its clean, friendly and safe ambiance.

The islands’ vast, unspoilt beaches, crystal-clear waters, wonderful reefs, duty-free shopping, scuba diving and deep-sea fishing attracted more than 1.9 million visitors in 2008. Grand Cayman is one of the world’s most revered scuba diving destinations, with more than 130 dive sites surrounding the island. Here, you will also find one of the Caribbean’s best sandy beaches, Seven Mile Beach.

Tourism accounts for about 70 percent of GDP and 75 percent of foreign currency earnings.

Thriving offshore financial centre

The Cayman Islands is the 5th largest offshore financial centre in the world, with $1.5 trillion in banking liabilities. It is also home to over 40% of all hedge funds.
More than 93,000 companies were registered in the Cayman Islands as of 2008, including almost 300 banks, 800 insurance companies and 10,000 mutual funds.

The country has more registered businesses than it has people and 45 of the world’s 50 largest banks have subsidiaries or branches in the Cayman Islands.

Since 1997, The Cayman Islands has had its own stock exchange — the CSX — with more than 1,450 listings and a market capitalization in excess of $123 billion. The Cayman Islands Stock Exchange is one of the world’s fastest growing international exchanges.

The Caymans are home to the 10th highest valued currency in the world. The official currency is the Cayman Islands dollar (CI$), which is permanently fixed at an exchange rate of CI$0.80 to US$1.

Political and legal stability

In 1962, Cayman Islands elected to remain a British colony, a decision that was seen as aimed at maintaining its reputation for political stability. It is one of 14 British Overseas Territories.

The country has a long history of parliamentary-style government, with legislators elected every four years. It is still subject to Britain in matters of foreign policy and defence. The legal system is based on English Common Law and is complemented by local laws. The courts operate under the English system, and the highest appeal is to the Privy Council in London.

Strong economy and attractive business environment

When it comes to doing business there, the stable economic and political climate, absence of exchange controls, modern infrastructure and state-of-the-art communication systems put the Cayman Islands on par with the best economies in the world. Add a lucrative banking environment, sound legal framework and responsive government to the equation, and it’s not difficult to understand why so many companies choose to make the Caymans their address.

The government has also established the Department of Commerce and Investment (formerly CIIB), an investment agency with a mandate to facilitate and stimulate long-term investment in all sectors of the economy.

With low inflation and just 4% unemployment, the fundamental strength of the economy is evident.

Growing population

With a current population of 49,035, the CIA World Factbook lists the Cayman Islands as the 35th fastest growing population in the world, at an annual rate of 2.39%.

The Cayman Islands boasts a highly educated workforce, with over 82% of the labour force having completed at least a high school degree, and 26% having completed a post-secondary degree from a local or overseas institution. English is the official language, but there are over 100 nationalities residing on the three islands, making the country one of the most cosmopolitan work environments in the region.

High standard of living

With an average income of around $42,000, Caymanians’ standard of living is not only the highest in the Caribbean; it’s one of the highest in the world.
 

Zero Taxation

The absence of any direct taxation makes the Cayman Islands stand apart. It has no local income tax for individuals or incorporated companies. There is no property tax, no capital gains tax, no inheritance tax, no sales tax and no tax on non-residents.

Instead, the government derives its revenue from company registration fees, stamp taxes, import duties and other non-income orientated taxes.

Location & Accessibility

The Cayman Islands is made up of three islands – Grand Cayman, Cayman Brac and Little Cayman. Miami is only an hour away by plane and eight major international airlines make more than 55 weekly flights into Cayman direct from the United States, Canada and Britain.

The Caymans’ national carrier serves its own three islands, plus the United States with flights to Miami, Houston, Tampa, Orlando, Fort Lauderdale, Boston and Chicago; Jamaica to Kingston and Montego Bay; as well as Havana.

U.S. carriers offer direct links from such cities as Atlanta, Miami, New York and Charlotte.

Regular, direct scheduled flights departing from London Heathrow to Grand Cayman’s Robert Owen International Airport are available through British Airways.
Plans are to triple the Cayman airport’s terminal capacity and add routes into the islands from northeastern locations such as Chicago, traditionally considered one of the top five sources of U.S. visitors.

No restrictions on property ownership

There are no legal restrictions on foreign ownership of property when the property is for the personal use of the owner, making Cayman very attractive to overseas investors. Most properties in the Cayman Islands are freehold, although there are a few leasehold properties.

Individuals can hold title to Cayman Islands property, alone, jointly, or in the name of a company.

To protect ownership and rights to property, the government has set up an efficient system of land registration under the Registered Land Law. The title to property in Cayman is ”absolute” (fee simple). Based on the Torrens System, each property has a property register.

Buyers may examine the records for any property to check whether there are any liens, charges or restrictions on it. Title is guaranteed through the government, making title searches unnecessary.

Residency

Anyone wishing to live in the Cayman Islands without any kind of employment may apply to the Chief Immigration Officer for consideration. There are two stages to the procedure; initial residency and permanent residency and initial residency will be granted only if it appears that the applicant will qualify for permanent residency.

Initial Residency: Applications are granted for a six-month period but can be renewed providing the Authorities are satisfied that an application for permanent residency has been made or is about to be made. The prospective resident must show that he/she does not need to work in the Cayman Islands to support himself or his dependants, and that he/she is of sound mind and in good health. At this stage, there is no need to acquire or prove ownership of real estate.

Permanent Residency: The second step is to apply for making the initial residency permanent. At this stage, the applicant is expected to have met the necessary property purchase or investment requirement. Once a person has been granted permanent residency, no further permission is necessary to enter or remain in the Cayman Islands.

Permanent Resident Permitted To Work: A permanent resident may, after two years of continuous residence, apply for a work permit. The Immigration Board will take into consideration the applicant’s standing in the community, as well as any contributions he/she has made to the community. Permission is usually restricted to a specific occupation and there is a required annual fee.

A global leader in the registration of the finest yachts

The Cayman Islands is the world’s leader in the registration of mega-yachts, all of which fly either a Cayman flag or the UK’s prestigious Category 1 Red Ensign as they sail to glittering international ports across the globe.

Beyond those excellent tax provisions, the Caymans offers the protection of the British Royal Navy and British embassies worldwide, as well as more hassle-free entry into the EU and the Mediterranean than U.S.-flagged boats enjoy.

Looking for a fantastic lifestyle that also allows you to have an attractive property investment – Cayman Islands are hard to beat.