Illes Caiman: Invertir
Attracting foreign direct investment is the cornerstone of the planning policy of the country, and the Cayman Islands are renowned for their financial industry and tourism. However, since 2011, FDI flows have been very volatile. According to the 2021 World Investment Report published by UNCTAD, FDI inflows reached USD 23.6 billion in 2020, down from USD 28.1 billion the previous year, in part due to the crisis triggered by the Covid-19 pandemic. The total FDI stock reached USD 23.6 billion in 2020.
Most investments are concentrated in the financial sector, making the country the eighth biggest banking centre in the world. To attract even more FDI, the Cayman Islands are trying to diversify their economy beyond tourism and offshore financial services. This project was partly implemented via the creation of the “Cayman Enterprise City”, which offers new business services in a special economic zone. The Government has introduced incentives to encourage the setting up of local industries: there are no corporate or income taxes for companies on money earned outside the Caymans’ territory, including interest or dividends earned on investments. A solid legal framework, a lucrative banking and financial service industry, access to professional service providers, a stable political and economic climate, the absence of trade controls, modern infrastructure and advanced communications systems are many of the assets that stimulate and attract foreign investors to the Cayman Islands, which is not ranked in the World Bank’s latest Doing Business report.
| No income tax is imposed on individuals in the Cayman Islands. |
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Latest Update: February 2023
