Taxes in the Cayman Islands

Cayman Islands tax rates in 2026: at a glance

The Cayman Islands charge no income tax, no corporate tax and no capital gains tax. The budget is funded by duties and fees, so taxes here are paid through prices and transactions. Here are the main charges in one table.

The Cayman dollar is pegged to the US dollar: 1 Cayman dollar equals 1.2 US dollars.

What changed in 2026

• Higher stamp duty on expensive property. From 1 January 2026, homes or land worth 2 million Cayman dollars (about $2,400,000) or more are subject to 10% instead of 7.5%. The duty is charged on the market value or the price, whichever is higher.
• The new rate applies to all buyers, including Caymanians.
• Wider relief for local buyers. Caymanians buying a first or second home get reduced duty without the earlier location restrictions.

Key features of the tax system

The Cayman Islands have no income tax, capital gains tax, inheritance or gift tax, wealth tax, payroll tax or withholding tax on dividends and interest. There is no annual property tax either.

The budget relies on indirect charges: import duty, stamp duty on property deals, fees for work permits, financial services licences and annual company registration, and tourism fees.

Tax residency certificate

The Tax Information Authority used to issue such certificates to people living on the islands; this practice has ended. Island law has no concept of tax residency because there are no direct taxes. For banks and international information exchange, residency is determined under the rules of that exchange.

The charges that do exist

The 22% duty is noticeable in daily life: food, electronics and cars on the islands cost more than in neighbouring countries. Personal effects brought in shortly after arrival can be imported duty-free when relocating.

Residency without taxes: the catch

Since the islands do not issue a tax residency certificate, leaving your previous country's residency has to be proven with other documents: a residence permit, a lease or title deed, evidence of life on the islands, entry and exit stamps. Many countries keep treating a person as resident until they prove that their centre of life has moved.

For example, many countries treat as resident anyone who spent 183 days or more there in a year, and some also look at where the family, home and business remain. The Cayman Islands will give neither a tax credit nor a certificate, so the move has to be planned in advance.

What a move on the 25-year certificate costs

On top of the investment itself, the main applicant pays stamp duty on the home and government fees.

Amounts are in Cayman dollars, with US dollars in brackets. If the whole 1 million goes into a home, stamp duty is paid on the full amount. If part is invested in a local business, duty is paid only on the property. Costs for family members depend on the family, and we calculate them in the chat.

Residence for people of independent means

You can live on the islands without working under one of two documents for people with independent income.

Each family member costs about 1,000 Cayman dollars (about $1,200). Stamp duty of 7.5% or 10% comes on top of a property investment and should be in the budget from the start.

Buying property

Caymanians buying a first home pay reduced duty of 0% to 3.75%. Transfers between spouses, from parents to children, between siblings and between grandparents and grandchildren may be exempt. There is no annual property tax, and gains on sale are not taxed.

Work and business

• Employment. A foreigner needs a work permit, which the employer arranges and pays for. 5% of salary is withheld for a pension plan, the employer adds the same, and health insurance is split in half.
• Your own company. There is no corporate income tax. Companies pay an annual registration fee, and those in certain activities, such as fund management or financing, must show real presence on the islands: an office, staff, management.
• Special economic zone. A company there can obtain work permits of up to 5 years for its owner and staff.

Tax information exchange

The Cayman Islands take part in the automatic exchange of financial account information and in the US reporting regime for accounts of US citizens and residents. Banks and funds on the islands report accounts of foreign tax residents to their home countries. Zero taxes on the islands do not hide income from the country where a person remains resident, so the exit from previous residency should be completed before assets are moved.

Common mistakes

• Relying on a residency certificate. It is no longer issued to individuals, so the move has to be proven with other documents.
• Not closing the previous residency. Income is then taxed in the previous country as if the move never happened.
• Forgetting stamp duty. From 2026 it is 10% on expensive property, which is 250,000 Cayman dollars on a 2.5 million house.
• Assuming nobody will see an account on the islands. Its details go to the owner's country of tax residency.

How we help

We choose a residence permit that fits your income and budget, support property purchases, prepare documents for leaving your previous country's residency and structure asset ownership so you do not overpay where you no longer live.

For remote work from the islands there is the digital nomad visa, for business - company registration and a personal account, for investment - investment property.

Benefits of the Cayman Islands tax system

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