Why are the Cayman Islands a Tax Haven

 

Most accounting and law firms and international banks are considering investing in the Cayman Islands once again.  It has been the collective response of various groups due to the current financial turmoil. Let us find out the various factors why the Cayman Islands are so attractive as an Offshore Haven.

 



Why the Cayman Islands Are So Attractive as an Offshore Haven



The Competitive Advantage of the Cayman Islands

 

There is currently a revival of the business sector in Cayman Island due to the multiple advantages that make it an intelligent place to conduct business. The existing law offers the investors considerable room to play.

 

Tax Haven

 

The Cayman Islands are known to be one of the top tax havens worldwide, which is why it is experiencing an influx in the number of global investors.  Compared to most countries, the place does not impose a corporate tax, which makes it ideal for multinational companies to base their subsidiary bodies to protect their income from taxation.  The benefits that they are mainly enjoying include the dividends and the interest earned through the investment, which is one of the reasons why the Cayman Islands are so attractive as an offshore haven to hedge fund managers.

 

Strategic Location

 The Cayman Islands

Another reason the Island has been catching the interest of investors over the past few years would be the Island itself.  It was able to strike a high financial interest because apart from the beauty and charm of the romantic Island, it is also a place of ambition and power for the economy.  The noble and royal families of Britain considered this pivotal to their lasting triumph.  The Cayman Islands can be regarded as a prestigious school of business intended for the elite where the young master is destined to go on schooling and advance the fortune and riches of the family.  The various aspects in the interaction and the daily life are comprised of essential lessons needed to groom a young person in business; that is why the Cayman Islands are tax haven.

 

Seamless Transaction

 Cayman Islands

Apart from the various advantages mentioned above, the idea of opening a bank account is also relatively simple.  Using multiple financial services is relatively easy, especially if all the existing rules and standards have been followed.  In terms of private banking, experts believe that a substantial financial pool is kept hidden in the public's eye, which is why the Cayman Islands are so attractive as a tax haven.  They believe that people who have something to hide should go to the Island.  One speculation about these hidden funds includes the $25-million investment of Mitt Romney.

 

When one is imposing a tax rate that is second to none, there would be no choice for the investor but to visit and invest in the Island.  The factors mentioned above are why the Cayman Islands are so attractive as an offshore haven.

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