The Cayman Islands are located southeast of Miami, Florida around 480 miles. Here the residents and visitors enjoy a semi-tropical climate. The population of the Cayman Islands is around 35,000 inhabitants with diverse origins.

These islands are considered a colony of the British Crown. As the role of representation to the Queen is performed by a Governor who is in charge of both the Legislative Assembly and the Executive Council as the Chairman.

The revenues of Cayman Islands are sourced from indirect taxes including import duties or stamp duty, thus there is a zero tax rate imposed on income or profits, capital or wealth or capital gains. One of the most interesting features of the Cayman Islands is that they have never seen any type of taxes. This absence of tax is a natural one unlike other territories that have no taxes implemented by legislation.

Tax-free status is not only for individuals living on the islands but is also for companies that have incorporated under the Cayman Islands. Because of the no tax freedom and political stability, many investors are now considering these beautiful islands for their own operations.

The government understands this is very attractive and has encouraged investments by introducing beneficial laws to enhance the appeal of the Cayman Islands to companies and individuals abroad. The policy is a continuation of an enconomic development strategy that has proved very productive for the government to date.

Even though, the official money of the Cayman Islands is the Cayman Island dollar, American, British, and Canadian money is also accepted without any problems. The rate of exchange is CI$l.00 to US$1.20. No restrictions are put on any company that maintains accounts in the various currencies in the cayman islands or in other jurisdictions.

At this time, there are around 550 banks, 400 insurance companies, 900 mutual funds and 32,000 companies registered under the Cayman Islands. The income produced by any of these entities is not subject to local taxation.  Only when these funds are brought into other jurisdictions is there the possiblity of a tax consequence.  Another great reason many companies are choosing the Cayman Islands beside the no taxation benefit is there are no unnecessary limits on freedom of trade and the ability of these companies to do business anywhere in the business world.