2nd June 2020

Central & South America

The Cayman Islands and the absence of an income tax

The absence of an income tax has contributed to the Cayman Islands prosperous situation, being the fourteenth richest in the world according to the latest World Bank data on per capita economic output. It also, takes the ninth place of the most promising countries according to the United Nations.

It's important to remark that the Cayman Islands are a model of racial tranquility. There are people from 135 different nations, and "mixed" is the most racial category.

There is an overcompensated government bureaucracy. Funding public administration is becoming a hard task the Cayman Islands. The absence of an income tax does not mean an absence of taxes. The key to understand this is that not all taxes are created equal. Some taxes impose much more damage than others.

The Cayman Islands face relentless pressure from international bureaucracies and high tax nations. There is a lot of resentment that the jurisdiction is very successful. Various countries are concerned about the zero-tax rate in the islands.

The irony of all is that the Cayman Islands actually have much higher standards with taxation than nations like the United States and the United Kingdom.