How the Cayman Islands Government Derives its Income

Written by Andys Rent-A-Car

The Cayman Islands are largely known on an international level as being a tax-free country whether for businesses or for the individual. The most accurate description, however, would be that the islands are “tax-neutral”. Although the Cayman Islands jurisdiction does not till date levy any form of tax on incomes and profits earned locally, foreign workers on an expatriate contract need to abide by tax laws in their country of origin.

Moreover, in the Cayman Islands, tax is also not due on capital gains yielded from investments. The country does not have taxes on goods, sales and other services. Typical consume taxes such as the VAT are not present on the island and several luxury goods are in part or completely duty-free. Finally, the island does not levy death or inheritance taxes when it comes to transferring properties and capitals after a death.

However, as it is the case for most countries, the government needs to find ways to raise its revenue in order to be able to cope with governmental expenses. The Government in the Cayman Islands relies mainly on customs duties, work permit fees paid by expatriates and the issue of business licenses. Another major source of income for the government is derived from tourism through tourist accommodation tax and other fees imposed on tourism institutions and financial services companies.

Andy’s Rent A Car proposes Grand Cayman rent-a-car services and has a variety of vehicles to choose from. Car rentals Cayman Islands can be booked in advance prior to any forthcoming trips on the island.