The Cayman Islands is an archipelago of the Caribbean Sea considered as a British overseas territory. This offshore place has been highly described as one of the most popular offshore destination by the media in the nineties because of all benefits they offered. However nowadays, due to many transparency agreements signed between the Cayman Islands and the United States of America, Ireland, the Netherlands, Scandinavian countries and the upcoming project to extend those agreements with many other countries belonging to the OECD, we are now facing a case of “end of cycle” regarding this offshore jurisdiction according to many experts.
Actually, although that the tax authorities of the Cayman Islands offer a profit tax rate of 0% for offshore companies, that is to say having only economic activities located outside the territory, the Cayman Islands authorities now reveal the business owners of offshore companies registered on their territory. It is therefore still possible legally not to be taxed on your offshore business profit but this is the only one benefit to incorporate your offshore company in the Cayman Islands as there is no more anonymity.
At FCBA Offshore Ltd, we do not recommend anymore to our clients to open an offshore bank account or to incorporate an offshore company in the Cayman Islands resulting of the signature of these transparency agreements with different states. Even though all countries have not yet signed these agreements, it seems that according to many experts it will be the case soon. That is why we do recommend also to the people having an offshore bank account or owning an offshore company in the Cayman Islands to contact us in order to advise you where you should relocate. Many other jurisdictions depending on your situation can guarantee you both: discretion and bank secrecy.
Finally, be aware that the initial deposit of your offshore bank account required by local banks can be quite high and therefore you must have it at your disposal before starting any business in there.