The Cayman Islands Receiving More Expats Than Usual

The British overseas territory saw its number of foreign workers increase from 19,927 at the end of 2011 to hit almost 21,000 by December 2012, according to the latest figures.

The higher numbers are mainly due to the relaxation of immigration laws, which included new five and 10-year work permits for those working in the reinsurance industry.

The Cayman Islands’ government has also started offering work permits for foreigners investing in its property sector.

These measures have more than helped counteract any expected fall in foreign workers due to a hike in work permit fees.

Last July, the then Cayman Islands premier McKeeva Bush announced controversial plans for a tax on expats’ salaries. But this was scrapped for fear of scaring off investors and workers, so work permit fees were increased as a consolation.

The Cayman Islands have long been seen as a tax haven for the wealthy thanks to its light disclosure rules. Monies held there also enjoy freedom from income tax, along with capital gains and corporation tax.

The territory is home to thousands of trust companies, countless financial vehicles along with most of the world’s hedge funds.