Three tiny islands make up the British Overseas Territory of the Cayman Islands, balanced precariously one side of the enormous Cayman Trench, the deepest part of the Caribbean. While synonymous worldwide with banking, tax havens and beach holidays, there’s much more to this tiny, proud nation, even if you do need to look quite hard to find it.
What’s so surprising about the Caymans at first is how un-British they are – it would be hard to design a more Americanized place than Grand Cayman, where the ubiquitous SUVs jostle for space in the parking lots of large malls and US dollars change hands as if they were the national currency. Only the occasional portrait of the Queen or a fluttering Union Jack ever begs to differ. This contradiction is just the first of many you’ll discover while getting to know these islands. The key to understanding what makes the Caymans tick is getting away from the crowded commercialism of Grand Cayman’s long western coastline and exploring the rest of the island. Better still, leave Grand Cayman altogether and visit the charming ‘sister islands’ of Cayman Brac and Little Cayman. Here life runs at a slower pace and the natural delights that see people coming back again and again – from bird-watching and hiking to diving and snorkeling – are never far away.
The Cayman Islands have for many years enjoyed a thriving economy with literally zero unemployment. Construction of new homes, hotels and condominium projects keeps developers busy, and land sales increase almost every year. To keep pace with the development requires the importation of foreign labour, and there are currently around 20,000 foreign workers in the Cayman Islands.
The tourism industry also continues to boom with a continual increase in cruise ship passenger and air (stay-over visitor) arrivals. Seven Mile Beach is one of the most popular stretches of beach in the world and is where you'll find many of the finest hotels and condos. Servicing the needs of over one million visitors a year also requires the help of foreign labour.
With a population of approximately 60,000 there is a huge trade with the US. Most locally consumed goods must be imported, and almost all food, clothing, electronics, building materials, automobiles, etc., are imported directly from Miami or Tampa, Florida. Large container ships arrive several times per week with supplies, and air cargo operators deliver fresh produce and other goods regularly.
The financial industry continues to boom with new businesses constantly arriving and established businesses expanding. Each year sees thousands of new company registrations, and there are now over 90,000 companies registered in the Cayman Islands. The financial industry is well regulated and stories of the Cayman Islands being a haven for the profits of illegal activities and money laundering are greatly exaggerated. Strict financial supervision and cooperation with US authorities on cases involving the proceeds of criminal activities has led to many arrests both locally and in the US.
Many persons have asked how the local government gets revenue if there is no taxation locally. Well, in simple terms, there are taxes, but not on your salary or the profits of your business. Taxes, otherwise known locally as fees and import duty, are assessed on many items and services. A few of the major sources of revenue are listed below:
- Imported goods, including food, building materials, automobiles, fuel and alcoholic beverages
- Land or property transfers (6% to 7.5%)
- Tourist accommodations (10%) as well as airport and cruise ship passenger departures
- Banks, Trust and Insurance company licences
- Company registration
- Telecommunications operating licences
- Work permits (Work Visas)
- Business licences
