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Setting up a company in the Cayman Islands?

Find out how to do it compliantly:

0% direct taxes

Exempted company structure

Owner confidentiality

No local shareholders required

You can reduce your tax burden legally. We will be happy to advise you in detail and offer you a free initial consultation.

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Pros and cons of setting up a company abroad

If you relocate your residence:

No personal income tax
An attractive option for people seeking a straightforward tax system in a reputable financial centre
No local income tax returns, but the departure from your previous country of residence must be planned carefully from a tax perspective

Without emigrating:

CFC rules, place of effective management and substance requirements may mean profits remain taxable in your home country
Limited double taxation treaty network
EU tax authorities often do not regard Cayman structures as having sufficient substance
Opening bank accounts has become more demanding due to tighter compliance and de-risking policies

What makes the Cayman Islands attractive as a business location?

The Cayman Islands are a tax-neutral British Overseas Territory in the Caribbean, south of Cuba, with around 77,000 inhabitants and the Cayman Islands dollar (KYD) as the currency. They are not a member of the European Union.

A Cayman Exempted Company allows 100% foreign ownership and is designed specifically for internationally operating businesses. The jurisdiction levies no corporation tax, no capital gains tax and no withholding tax on dividends. As a result, it is often used for holding structures, investment vehicles and international wealth planning.

The Cayman Exempted Company is purpose-built for non-residents. There is no minimum share capital, and shareholders and directors may be foreign individuals or legal entities.

For standard exempted companies there is no requirement to file annual accounts publicly; however, proper accounting records must be maintained. Annual government fees apply.

Depending on the nature of the activity, economic substance requirements apply. Cayman also maintains tax information exchange agreements and meets international transparency standards.

The Cayman Islands were removed from the FATF grey list in October 2023 and are currently not on the EU blacklist.

Cayman is a major international financial centre. However, opening an account has become more challenging. Full KYC checks, proof of source of funds and a clear economic rationale are required.

Banking relationships are possible locally or internationally, depending on the structure and business activity.

Contact us for an individual assessment and potential alternative solutions.

FAQs

Are taxes in the Cayman Islands high?

No. The Cayman Islands levy 0% corporation tax, 0% income tax, 0% withholding tax, 0% capital gains tax and 0% inheritance tax.

Is it easy to obtain a VAT number?

There is no VAT system in the Cayman Islands.

Is a local director required?

Directors do not need to be resident in the Cayman Islands.

Is it possible to incorporate remotely?

Yes. Exempted companies are typically incorporated via licensed service providers, and the process can usually be handled fully remotely with KYC checks.

Are there many banking options?

Banking options do exist, but you should expect strict checks and longer processing times, especially for complex structures or where the source of funds is difficult to evidence.

Which locations worldwide are best suited to paying as little tax as possible?

	Tax Burden	Banking	Reputation	Bureaucracy	Legal Security	Costs
USA	21-0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Singapore	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,950
Hong Kong	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Cyprus	15%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Malta	5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,500
Ireland	12,5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,950
Trust	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 4,900
England	25-19%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,000

Tax compliance in your country of residence

Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income — in some cases even if profits are not distributed.

Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.

To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.

Our advisers will be pleased to review your case and advise you accordingly.

1.

Analyse your needs

We assess your situation to define objectives, risk tolerance, tax exposure and asset-protection priorities.

2.

Carry out a location analysis

We compare potential jurisdictions based on tax law, banking access, compliance requirements and your country of residence.

3.

Incorporate the company and, if needed, set up a foundation

Open accounts and custody accounts and, if required, implement the wealth management