The Ultimate Guide to Expat Living in the Cayman Islands

With golden sands, palm trees and crystal-clear water, the Cayman Islands’ Seven Mile Beach is among the best in the world. 

When it comes to living in the Cayman Islands, whether you enjoy boat parties, barbecues, working out, diving, riding jet skis, surfing or sailing, it’s all right there at your fingertips. 

Whether you seek an island escape away from the chaos or a tax haven where you can keep more of your wealth, this is the place to consider. 

Cayman Islands – Country Overview

The Caymans are three separate islands: Grand Cayman, Cayman Brac and Little Cayman.

The population of around 70,000 is mainly concentrated in three districts: the capital, George Town, West Bay and Bodden Town.

A British dependency, the island is located in the Caribbean Sea, 438 kilometres south of Cuba and 500 kilometres northwest of Jamaica.  

The Cayman Islands have a well-developed infrastructure that is the envy of other Caribbean islands. 

Large numbers of wealthy investors and entrepreneurs go to the Cayman Islands to take advantage of its zero-tax policy. 

Many people love living there because of its beaches, tropical climate, luxury villas and apartments, good healthcare, schools and networking opportunities. 

Cayman Islands law is heavily based on the British system. English is the official language, and citizens of the Cayman Islands hold British Overseas Territories Citizenship.

The Caymans are known for their cosmopolitan nature and diverse population. The majority of expats living there are Jamaican, American, South African, English, Canadian and Filipino.

With a reputation for world-class medical care, there are over 200 registered healthcare facilities in the Caymans, with 700 registered medical practitioners and private specialists. 

There are over 40 preschools and 27 private and government schools with 838 teachers across the three islands. 

Preschools cost around US$1,100 per month in the region, while private primary schools charge up to approximately US$18,000 per year and high schools around US$20,000 per year. 

Cayman Islands – Cost of Living 

The Caymans have a lot to offer, but everything comes with a price tag, and living there is relatively expensive. 

Rented houses or apartments on the island usually come fully furnished with everything from a fridge, cooker, television and beds included. 

Rental prices range from US$3,000 per month for a basic two-bedroom apartment to US$7,000 for a top-of-the-range condo in a gated community with a pool and garden view. 

The price also depends on location. You can expect to pay more in George Town, the island’s financial hub and a port of call for cruise ships. Ultra-desirable areas like the Seven Mile Beach Corridor are even more expensive. 

While cheaper options are available in places like Bodden Town, it’s more remote. You should consider the hassle and expense of additional travel. 

Obviously, the cost of utilities like electricity, water, and gas varies depending on how much you use them, but in a hot tropical climate, the use of air conditioning can come with a hefty bill. 

Water is another expense to factor in, with the average cost coming in around US$200 per month, depending on the size of your household. 

You should also budget up to US$200 for fibre internet and US$100 per month for wireless internet services. 

Despite all that’s good in the Caymans, public transport tends to run on island time and is generally inefficient.   

Renting a car and later buying one if you intend to stay is recommended. Expect to pay a premium for imported cars and many other goods and services. 

If you enjoy eating out, you can expect high-quality cuisine and amazing seafood dishes at slightly above-average prices. 

It’s not madly expensive, but you could easily pay US$50 for a 10-oz rib-eye steak at a trendy waterfront eatery. 

However, on average, expect to pay US$30 per person in a mid-level restaurant. A pint of imported beer will set you back US$6, and cocktails are in the US$12 range. 

Due to the high cost of importing goods, groceries are expensive in the Caymans. In fact, you can pay twice what you would in the UK or the US for essential items. 

According to estimates, a loaf of fresh white bread costs around US$5, a litre of milk US$2.90, 12 eggs cost US$7 and a kilo of beef is US$16.

Permanent Residence and Citizenship

The Cayman Islands offers both permanent and temporary residence permits. 

Permanent residence, which may provide a path to eventual citizenship, is granted to those making a minimum investment of CI$2 million Cayman dollars (US$2.4 million) into qualifying real estate. 

All local real estate for sale is eligible for the investment and more than one property can be bought to make up the total amount. 

There are no property or capital gains taxes on the Islands.

With this residence-by-investment scheme, there is little physical presence requirement, meaning that you must only spend one day per year within the first five years in the Caymans. 

After this five-year period, you are required to live there for 12 months to be able to apply for citizenship. 

The Caymans allow dual citizenship, and there is no obligation to surrender any existing passports. You may also apply for the right to work on the island. 

The opportunity to become a British Overseas Citizen is one of the most attractive features of obtaining permanent residence in the Caymans. 

There are only a few ways to get British citizenship, including through your ancestors, through the naturalisation process or by marriage.  

As a British overseas citizen, you can apply for a UK passport and receive consular assistance, but you cannot live and work permanently in the UK.

However, if the UK passport, a powerful travel document, is your goal, then you can use one of the British Overseas Territories as a fast track to get UK citizenship without actually having to live there. 

The Caymans allows you to get a de facto UK passport, even faster than the six years it can take to become a naturalised UK citizen.

Obviously, this passport, as with everything in the Cayman Islands, comes with a price tag. However, you can include your whole family.

Besides making a significant investment in real estate, you also need to have a clean police record, be in good health and provide three character references. 

You will also need to prove that once you’ve got real estate, you can support yourself while living in the Cayman Islands. 

The process is generally straightforward, and it only takes a few weeks for the authorities to check your documents. 

Temporary Residence

The other route to Cayman’s residence is to invest US$1.2 million in real estate or form a company. 

This does not give you the right to work or apply for citizenship, but is valid for 25 years. 

To maintain temporary residence in the Cayman Islands, you must spend at least 30 days there each year. The visits don’t need to be continuous, so you can accumulate them throughout the year.

With company formation, you must have at least one employee, but you can employ yourself to satisfy this requirement. 

The fees for company incorporation, licensing and a work permit can be expensive, with government charges varying depending on numerous factors. 

It is always best to seek guidance with this process. 

Because your Cayman’s company can trade from anywhere, you can establish personal residence there without worrying about triggering permanent establishment rules. 

To be a resident in the Cayman Islands, you must stay there for at least 183 days a year or 30 days if you have a permanent home.

So, if you form a company and employ yourself, you are able to get residence in the Cayman Islands through a work permit. 

Setting up a company can take about five weeks, so it’s not the quickest program. 

Keep in mind that the five-week timeline is just for the incorporation.  Before that, you need to spend time putting the application together. 

To be eligible for a work permit, you must also have a pension policy and health insurance through a local provider. 

The good thing is you don’t have to be physically present there and can apply remotely.

Pros and Cons of Living in the Cayman Islands 

The Caymans’ tax system is its biggest draw. There is no direct taxation, including corporate tax, capital gains tax, profit tax, payroll tax and wealth tax. 

If you get residence and end up living in the Cayman Islands, it is one of the last surviving jurisdictions where you will pay zero tax. 

Besides this, if you enjoy warm weather and beautiful beaches, the Caymans truly deliver. 

Cayman residence by investment is one of the most expensive programs with an entry-level cost of US$1.2 million, but if you don’t want eventual citizenship, company formation can be a cost-effective route.  

Whatever option you decide to take, you will enjoy the benefits of high-quality living, modern infrastructure, great healthcare, schooling, and a strong expat community.

If you go down the real estate route, unlike many comparable programs in the Caribbean, the property doesn’t have to be government-approved. 

So, unlike other programs where there’s a limited selection, you can choose any property on the open market. 

Apart from that, the Cayman British Overseas Territory passport is actually quite a good passport.

 If you meet certain conditions, you can use it to go to the US without a visa, which is very convenient for a lot of people who want to maintain visa-free access to the US. 

In terms of disadvantages, Cayman’s real estate is expensive, resulting in a high minimum investment. 

While it doesn’t have any personal income tax, duty taxes are levied on most goods imported to the Caymans at a rate of 22%. This means you will pay more for many goods, especially food. 

Another potential drawback is that the Caymans are prone to hurricanes. In August 2021, Hurricane Grace caused damage to Grand Cayman with minor impacts to Little Cayman and Cayman Brac. 

In fact, tropical storms that cause damage and flooding are relatively common, with 15 such events so far in the 2020s. Thankfully, the island has learned to cope and fatalities are extremely rare. 

Expat Living in the Cayman Islands

With options that grant you residence by investing in real estate or simply opening a company and applying for a work permit, the Caymans are open to expats. 

On top of meeting the property investment requirement, you must also show sufficient income in a local bank account to sustain yourself. 

The Cayman Islands is one of the most tax-friendly places on earth. You can purchase real estate to get residence, or start your company in a Cayman’s special economic zone. 

At Nomad Capitalist, we’ve helped people in the cryptocurrency industry set up businesses in the Cayman Islands, which is becoming increasingly friendly towards crypto investors.

So, whether you want to buy a property or start a company, you will benefit from the Islands’ historical opposition to any kind of direct taxation. 

You can basically live there tax-free, enjoy a great quality of life and the British influence that is prevalent there. 

It is a very attractive jurisdiction if you’re looking to establish a Plan B and you have the wealth to cement yourself there.

The Cayman Islands is a British Overseas Territory, so technically, it cannot give out citizenship without approval from Britain. 

This means it does not offer a citizenship-by-investment program like those provided by other Caribbean Islands. It does, however, offer a path to citizenship through permanent residence.

If you want to get permanent residence, you’re looking at US$2.4 million invested in real estate. 

In this case, you only need to spend one day per year in the Cayman Islands. If you get the permanent residence, you will gain access to a beautiful, high-end villa with all the trappings of luxury that you’d expect for a seven-figure investment. 

After five years of permanent residence, you can qualify for a British Overseas Territory passport. 

After another 12 months, you can apply for a British passport and become a British citizen without paying taxes to the UK. 

That’s the beauty of it. If you want to get a British passport with really good visa-free travel and overall respect around the world, you don’t have to live in the UK and pay high taxes.

You could live in the Cayman Islands, invest in permanent residence, and then work towards obtaining a British passport. 

Another advantage of the Cayman Islands is purchasing real estate. You don’t have to worry about overpaying for property, getting caught up in scams or being liable if a development is unfinished. 

As properties are available on the open market and not government-approved, you have the freedom to choose a beautiful house and negotiate the price. 

Also, if you’re interested in acquiring land in the Cayman Islands, there are no restrictions on foreign ownership either. 

If you have a considerable net worth, the Cayman Islands is a good place to live compared to all other parts of the Caribbean. 

As part of a global diversification strategy to minimise your taxes and maximise your freedoms, having a base in the Cayman Islands allows you to enjoy tax-free living without spending time there to become a tax resident. 

We recommend the Cayman Islands to anybody who wants to be close to the United States and doesn’t want to live on a less developed island like St. Kitts or Antigua. If you want good infrastructure and great networking, the Cayman Islands fits the bill. 

Expat Living in the Cayman Islands: FAQs

Planning to Plant Your Caribbean Flag?

If you can afford it, Cayman Islands residence is a low-risk way to establish a zero-tax base. 

If you’re a US citizen who makes money through passive investments, for example, then becoming a resident of the Cayman Islands could be an important part of a larger strategy to renounce your US citizenship and lower your tax bill.

Are you interested in becoming a British Overseas citizen to maximise your passport power, or are you looking for a safe, warm-weather, zero-tax Caribbean second residence? 

If so, the Cayman Islands has plenty to offer. 

Whatever you decide, you’ll need to plan it carefully, and that’s where Nomad Capitalist comes in. 

We help seven- and eight-figure entrepreneurs and investors create a bespoke strategy using our uniquely successful methods. That will allow you to keep more of your own money, create new wealth faster and be protected from whatever happens in just three steps. 

We have a worldwide network of lawyers, estate agents, accountants and tax and company formation specialists. All that expertise and real-world experience come together when we advise on your holistic, bespoke action plan. 

To get started today, reach out to our team.