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Cayman Islands Tax Guide

Caribbean
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
100/100
Extremely Tax Friendly
Business Tax Score
95/100
Extremely Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days generally required; various residency permit categories available

Income Tax Rates

Top Marginal Rate
0%
Structure
No direct taxation

Foreign Income Treatment

System
Exempt
Details
No income tax on any source

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance or estate tax

Practical Notes

No property taxes or rates. Stamp duty on real estate transfers (7.5%). High cost of living.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
0%
Effective Rate Note
No corporate income tax; 15% QDMTT applies to large MNEs (revenue >€750m)
Free Zone / Incentives
No distinction - all companies enjoy zero corporate tax

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
0%
Note
No VAT or sales tax

Compliance & Substance

Substance Requirements
Economic substance requirements for certain activities
Compliance Friction
Low - well-regulated financial center

Notable Regimes

  • Zero tax regime
  • QDMTT for large MNEs

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Cayman Islands?

Cayman Islands has a top personal income tax rate of 0%. The tax structure is: No direct taxation. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Cayman Islands?

Cayman Islands uses a exempt system for foreign income. No income tax on any source

What are the residency requirements for Cayman Islands?

Tax residency in Cayman Islands generally requires 183 days of physical presence. 183 days generally required; various residency permit categories available. Always verify current rules with official sources.

Is there a wealth tax in Cayman Islands?

No, Cayman Islands does not have a wealth tax. No wealth tax

What is the corporate tax rate in Cayman Islands?

The corporate tax rate in Cayman Islands is 0%. No corporate income tax; 15% QDMTT applies to large MNEs (revenue >€750m)