Starting a business in
🇰🇾Cayman Islands
Checked November 4, 2026 · How we score
Corporate tax
0%
Top income tax
0%
Setup from
$3,000
all-in, first year
Time to form
3 days
can be done remotely
Taxes in Cayman
| Corporate income tax | 0% No corporate income tax. Exempted companies pay annual government fees instead (about US$1,000 for companies with authorised capital up to US$50,000). A 15% Domestic Minimum Top-up Tax is under implementation for in-scope MNE groups with EUR 750M+ revenue. Entities carrying out 'relevant activities' (e.g. fund management, headquarters, distribution, financing) must pass economic substance tests. |
|---|---|
| Personal income tax (top) | 0% No personal income tax, capital gains, inheritance or payroll taxes on residents. Revenue comes from import duties (typically 22%–27%), stamp duty on property (7.5%) and work permit fees. |
| Tax system | No personal income tax |
| Capital gains tax | 0% |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | None |
| Social security | No VAT or sales tax. Employers pay pension contributions (5% each for employer and employee, up to a cap) and health insurance for Caymanian and expatriate employees. |
Forming a company in Cayman
| Usual entity | Exempted Company (limited by shares) or LLC |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $3,000–$6,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
The Global Citizen Concierge Programme lets remote workers live in Cayman for two years with a certificate fee and income of at least US$100,000 a year (about US$8,333 monthly), US$150,000 for couples, plus US$25,000 for each dependent. Permanent residency by investment exists for those with significant real estate and financial means (multi-million CI$), plus Cayman work permits for employees.
| Digital nomad visa | Global Citizen Concierge Programme, $8,333/month income |
|---|---|
| Golden visa | Yes |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Exempted company
The standard offshore vehicle: no local trade permitted, no director residency requirements, private shareholder register, and an annual government fee. Directors must register with CIMA.
Economic substance regime
Relevant entities in banking, distribution, fund management, financing, HQ, shipping, holding or IP must show adequate local staffing and expenditure, or face penalties; pure equity holdings meet a reduced test.
Global Citizen Concierge Programme
Two-year residence certificate for remote workers with at least US$100,000 annual income, with no local tax on foreign income.
Pros and cons
Why founders pick Cayman
- Zero direct taxes with a mature, well-regarded financial centre
- Common-law legal system and a deep pool of lawyers and administrators
- Standard structure for VC, hedge funds and token foundations
- Not on the EU blacklist or grey list as of October 2026
Watch out for
- High cost: professional fees and annual government fees are the highest in the region
- Economic substance, CRS/FATCA and beneficial ownership reporting obligations
- Not suited to small online businesses; limited use for payment processing
- Very high cost of living for residents
Best for: Venture-backed startups using Cayman holding structures · Investment funds, crypto foundations and DAOs · High-net-worth remote workers able to meet the income threshold
Cayman: common questions
Does the Cayman Islands have corporate tax?
No. There is no corporate income tax, capital gains tax, withholding tax or VAT. Companies pay annual registration fees to the government (about US$1,000 for a standard exempted company), and large multinational groups may fall under a domestic minimum top-up tax regime from the Pillar Two rules.
Is the Cayman Islands on the EU tax blacklist?
No. The Cayman Islands are not on the EU's Annex I blacklist or Annex II grey list as of the 9 October 2026 update. They were removed from the FATF grey list in October 2023, and remain subject to economic substance rules and transparency commitments.
How much does it cost to incorporate in the Cayman Islands?
Expect about US$3,000–US$6,000 in the first year for an exempted company through a registered office provider, including government fees. Annual costs of roughly US$3,000–US$8,000 cover the registered office, government fee, director registration and compliance filings.
Do I need to live in the Cayman Islands to run a Cayman company?
No. An exempted company can be owned and directed from abroad, provided it has a registered office in Cayman (supplied by a licensed provider). It cannot trade locally, and if it conducts 'relevant activities' it must meet economic substance requirements.
Can I live in Cayman as a digital nomad?
Yes, through the Global Citizen Concierge Programme, which grants a two-year stay to remote workers earning at least US$100,000 a year (US$150,000 for couples). Cayman remains one of the world's most expensive places to live.
Sources
- Cayman Islands Government: Tax Information Authority
- Cayman Islands General Registry
- Council of the EU: list of non-cooperative jurisdictions
Compare Cayman
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.