Question for Cayman Island traders

Discussion in 'Professional Trading' started by shortskirt, Sep 22, 2005.

  1. So i understand that the Cayman Islands have no tax on income, property or capital gains. This all sounds great! My question is how accessible is the money that you make there? Could i live there and have an account with Interactive Brokers and still have the tax advantages or would you have to have brokerage account with a Cayman islands firm? If i made a million and then moved back to the USA, would i have to pay tax on it?
  2. Schaefer


    It's not where you made the money, it's what you are that matters the most.

    Happy trading to your a million bucks :)
  3. By the time you make a million and want to come back to usa you might be senile and already attached to a respirator in IC.

  4. Thank you for your totally useless response.
  5. The money was just an example. My question was about taxation.
  6. Sorry.

    Mine was just a joke.
  7. If you are a US citizen, moving to the Cayman Islands will not help much as far as your taxes go. The US will tax you regardless of where you live and the only tax benefit you will receive is the offshore exemption where you will not pay tax on the first 80K per year in income (this may have gone up some???). To avoid US tax you must give up your US citizenship and become a citizen somewhere else (technically only the first part, but no sane individual wants to become a stateless person).

    The Cayman Islands does not have an economic citizenship program, only a program that grants permanent residency status. Under the previous government it was possible to bribe your way to citizenship but that bunch got voted out in large part because of corruption so I doubt that this can still be done.

    For economic citizenship, the best bet is probably the Federation of St. Kitts and Nevis. There is no residency requirement so you could live in the Caymans as a permanent resident and not pay any taxes.


  8. cable


    Good post, TRADERguy. That's what I was going to say, just probably not as well.
  9. bro59


    IB would work fine for that purpose, but your citizenship and corporate structure is the bigger issue.

    Legitimate offshore structures do well to domicile in the Caymans.
  10. Bahamas give citizenship with a home purchase of $500k or more. Plus its only a 30 minute flight to South beach.
    #10     Sep 23, 2005