{"id":10233,"date":"2022-11-15T09:00:16","date_gmt":"2022-11-15T14:00:16","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=10233"},"modified":"2022-11-17T10:42:09","modified_gmt":"2022-11-17T15:42:09","slug":"move-business-cayman-pay-no-tax","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/move-business-cayman-pay-no-tax\/","title":{"rendered":"How to move your business to Cayman and pay no tax"},"content":{"rendered":"<h1><strong>How to move your business to Cayman and pay no tax<\/strong><\/h1>\n<p><span style=\"font-weight: 400\">Cayman is one of the most beautiful islands in the Caribbean and a top offshore banking and investment jurisdiction. <a href=\"https:\/\/www.escapeartist.com\/blog\/move-your-business-to-the-cayman-islands\/\" target=\"_blank\" rel=\"noopener noreferrer\">The Cayman Islands<\/a> are the pinnacle of the international tax and business world. Here\u2019s how to move your business to Cayman and pay zero US tax. <\/span><br \/>\n<a title=\"Omaha Steaks Logo\" href=\"https:\/\/track.flexlinkspro.com\/g.ashx?foid=1.147.2010001024&amp;trid=1328118.185&amp;foc=16&amp;fot=9999&amp;fos=5\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" class=\"aligncenter\" style=\"max-width: 100%\" src=\"https:\/\/ad.linksynergy.com\/fs-bin\/show?id=PPkX79\/c*b0&amp;bids=1185554.10001024&amp;type=4\" border=\"0\" \/><\/a><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/track.flexlinkspro.com\/i.ashx?foid=1.147.2010001024&amp;trid=1328118.185&amp;foc=16&amp;fot=9999&amp;fos=5\" width=\"0\" height=\"0\" border=\"0\" \/><span style=\"font-weight: 400\">Cayman has been the jurisdiction of choice for large banks, funds, and law firms for decades. However, the costs and challenges of getting a visa have kept small businesses out. Then, in 2015, the islands opened up tax free zones that included residency permits and work visas, which is what those of us with portable businesses need to operate efficiently. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Basically, you can now <\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/move-your-business-to-the-cayman-islands\/\"><span style=\"font-weight: 400\">move a small service business to Cayman<\/span><\/a><span style=\"font-weight: 400\">, get a work permit and residency visa in a few days, and be up and running immediately. There are no requirements to hire a certain number locals or buy a home. All of the red tape has been eliminated for qualifying businesses setting up in approved areas. <\/span><br \/>\n<a title=\"Logo 468x120\" href=\"https:\/\/track.flexlinkspro.com\/g.ashx?foid=156052.9710.437992&amp;trid=1328118.225825&amp;foc=16&amp;fot=9999&amp;fos=5\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" class=\"aligncenter\" style=\"max-width: 100%\" src=\"http:\/\/www.pjtra.com\/b\/4-437992-47736-227434\" border=\"0\" \/><\/a><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/track.flexlinkspro.com\/i.ashx?foid=156052.9710.437992&amp;trid=1328118.225825&amp;foc=16&amp;fot=9999&amp;fos=5\" width=\"0\" height=\"0\" border=\"0\" \/><span style=\"font-weight: 400\">These new tax free zones provide the following benefits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">No corporate, income, sales or capital gains tax in Cayman Islands \u2013 tax payable in the USA is a complex matter summarized below.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">100% foreign company ownership permitted<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A 3-4 week fast-track business licensing regime<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Renewable 5-year work\/residency visas granted in 5 days<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Cutting-edge IT and business infrastructure<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Offshore hosting &amp; payment gateway<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Minimal Government regulation<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">No Government reporting or filing requirements<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A tech cluster with massive cross-marketing opportunities<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">\u2019One-stop-shop\u2019 Administration services<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Work visas for your staff and residency permits for your spouse and children at no additional cost.<\/span><a title=\"141944:General Logo - 400x120\" href=\"https:\/\/track.flexlinkspro.com\/g.ashx?foid=2.2626374.12611779&amp;trid=1328118.200997&amp;foc=16&amp;fot=9999&amp;fos=5\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" class=\"aligncenter\" style=\"max-width: 100%\" src=\"https:\/\/www.awltovhc.com\/image-1760738-12611779-1625184971000\" border=\"0\" \/><\/a><span style=\"font-weight: 400\">Note that you must operate your business in one of the Island\u2019s tax free zones to get these benefits. Also, your business must in one of the pre-approved industries. <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Qualified businesses include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Internet &amp; Technology<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Media, Marketing or Film<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Biotechnology &amp; Life Sciences<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Commodities &amp; Derivatives<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Maritime Services<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">The above is how to move your business to <a href=\"https:\/\/www.escapeartist.com\/blog\/8-things-not-to-miss-in-grand-cayman\/\" target=\"_blank\" rel=\"noopener noreferrer\">Cayman<\/a> and what you\u2019ll need to live and work (for yourself) on the island.\u00a0 <\/span><br \/>\n<a title=\"Logo 300x100\" href=\"https:\/\/track.flexlinkspro.com\/g.ashx?foid=156052.9526.408070&amp;trid=1328118.161811&amp;foc=16&amp;fot=9999&amp;fos=5\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" class=\"aligncenter\" style=\"max-width: 100%\" src=\"http:\/\/www.pntrs.com\/b\/4-408070-47736-201901\" border=\"0\" \/><\/a><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/track.flexlinkspro.com\/i.ashx?foid=156052.9526.408070&amp;trid=1328118.161811&amp;foc=16&amp;fot=9999&amp;fos=5\" width=\"0\" height=\"0\" border=\"0\" \/><span style=\"font-weight: 400\">This business will pay zero tax in Cayman. If you\u2019re not from the United States, this probably means you won\u2019t pay tax to any country.<br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you\u2019re a US citizen, your situation is more complex. Uncle Sam wants his cut no matter where you live. The US is one of the very few countries that taxes non-resident citizens and green card holders on their worldwide income. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Fortunately, the residency program in Cayman is designed with Americans in mind. It allows you to qualify for the <\/span><a href=\"https:\/\/www.escapeartist.com\/blog\/foreign-earned-income-exclusion-2018\/\"><span style=\"font-weight: 400\">Foreign Earned Income Exclusion<\/span><\/a><span style=\"font-weight: 400\"> using the residency test rather than the physical presence test. Residency in Cayman means you can spend 4 months or more in the US each year. Without residency in cayman, you\u2019re only allowed 35 days a year in the States under the physical presence test. Having residency will make qualifying for and using the FEIE much easier.<\/span><a href=\"https:\/\/www.anrdoezrs.net\/click-100732843-13276193\" target=\"_top\" rel=\"noopener nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.lduhtrp.net\/image-100732843-13276193\" alt=\"Orbitz\" width=\"728\" height=\"90\" border=\"0\" \/><\/a><span style=\"font-weight: 400\">By qualifying for the Exclusion, your first $102,100 of business income will be tax free in the United States. You\u2019ll form a corporation in Cayman, deduct your ordinary and necessary expenses, and draw a salary of up to $102,100. This salary will be reported on <\/span><a href=\"https:\/\/www.irs.gov\/uac\/about-form-2555\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400\">IRS Form 2555<\/span><\/a><span style=\"font-weight: 400\"> along with the FEIE. <\/span><\/p>\n<p><span style=\"font-weight: 400\">What happens if you earn more than $102,100? You have two options: <\/span><\/p>\n<p><span style=\"font-weight: 400\">You can take out all of your income as salary. You\u2019ll pay ordinary income tax rates on the excess over the FEIE amount. So, your first $100,000 is tax free and the amount over this is taxed at 35% or more. <\/span><\/p>\n<p><span style=\"font-weight: 400\">For example, you net $500,000 and take it all out as salary. The first $100,000 is tax free and the excess $400,000 is taxed at about 35%. Thus, your US tax bill is $140,000. This is a rough estimate for illustrative purposes. <\/span><br \/>\n<a title=\"GNC Logo - 168x28\" href=\"https:\/\/track.flexlinkspro.com\/g.ashx?foid=2.4851262.12833491&amp;trid=1328118.162841&amp;foc=16&amp;fot=9999&amp;fos=5\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" class=\"aligncenter\" style=\"max-width: 100%\" src=\"https:\/\/www.ftjcfx.com\/image-1760738-12833491-1656543459000\" border=\"0\" \/><\/a><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/track.flexlinkspro.com\/i.ashx?foid=2.4851262.12833491&amp;trid=1328118.162841&amp;foc=16&amp;fot=9999&amp;fos=5\" width=\"0\" height=\"0\" border=\"0\" \/><span style=\"font-weight: 400\">Note that using a Cayman corporation for your business also eliminates Self Employment tax. If you don\u2019t form a Cayman corporation, US SE tax will apply at 15% to your net income. <\/span><\/p>\n<p><span style=\"font-weight: 400\">You can also hold income in excess of the FEIE in your corporation tax deferred. Hold the $400,000 in your foreign corporation and you will defer US tax on those profits indefinitely. You will only pay US tax when you take a distribution, presumably at <\/span><a href=\"http:\/\/www.investopedia.com\/articles\/taxes\/090116\/how-are-qualified-and-nonqualified-dividends-taxed.asp\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400\">nonqualified dividend<\/span><\/a><span style=\"font-weight: 400\"> rates.<\/span><\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>That\u2019s how to move your business to Cayman and operate tax free. I hope you\u2019ve found this article helpful.<\/p>\n<p><strong>For more information, <a href=\"https:\/\/www.escapeartist.com\/offshore-incorporation-setup\/\">please contact us<\/a>. \u00a0<\/strong>Our team will be happy to assist you get setup in Cayman or any other tax free offshore jurisdiction.<\/p>\n<p><a title=\"Generic Banner\" href=\"https:\/\/track.flexlinkspro.com\/g.ashx?foid=156085.110100799.101152854&amp;trid=1328118.257&amp;foc=16&amp;fot=9999&amp;fos=5\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" class=\"aligncenter\" style=\"max-width: 100%\" src=\"https:\/\/console.partnerize.com\/upload\/0e3fe83931462a72b81da17da6015f6b234x60png\" border=\"0\" \/><\/a><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/track.flexlinkspro.com\/i.ashx?foid=156085.110100799.101152854&amp;trid=1328118.257&amp;foc=16&amp;fot=9999&amp;fos=5\" width=\"0\" height=\"0\" border=\"0\" \/>Here is probably the most extensive ebook on <i>Everything You Ever Wanted To Know About Eliminating Your Taxes, Protecting Your Assets And Regaining Privacy Over Your Life And Investments<\/i>. <b>It is called<\/b> <b>The<\/b><a href=\"https:\/\/www.escapeartist.store\/product\/ultimate-guide-to-going-offshore\/\"> <b>Ultimate Guide To Going Offshore<\/b><\/a><b>.\u00a0 <\/b>Visit our bookstore to purchase it today!<\/p>\n<p><b>Enjoy these articles by Escape Artist.<\/b><\/p>\n<p><a class=\"LinkSuggestion__Link-sc-1mdih4x-2 jZPuuT\" href=\"https:\/\/www.escapeartist.com\/blog\/guide-to-foreign-tax-credit-foreign-tax-treaties-and-foreign-housing-exclusion\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Guide to Foreign Tax Credit, Foreign Tax Treaties and Foreign Housing Exclusion<\/strong><\/a><\/p>\n<p><strong><a class=\"LinkSuggestion__Link-sc-1mdih4x-2 jZPuuT\" href=\"https:\/\/www.escapeartist.com\/offshore-cheat-sheet\/\" target=\"_blank\" rel=\"noopener noreferrer\">Offshore Cheat Sheet<\/a><\/strong><\/p>\n<p><strong><a class=\"LinkSuggestion__Link-sc-1mdih4x-2 jZPuuT\" href=\"https:\/\/www.escapeartist.com\/blog\/characteristics-and-legal-status-of-offshore-incorporated-companies\/\" target=\"_blank\" rel=\"noopener noreferrer\">Characteristics and Legal Status of Offshore Incorporated Companies<\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" href=\"https:\/\/www.escapeartist.com\/blog\/move-your-business-to-the-cayman-islands\/\"> Move your Business to the Cayman Islands <\/a><\/strong><\/p>\n<p><strong><a class=\"waffle-rich-text-link\" href=\"https:\/\/www.escapeartist.com\/blog\/2021-language-routine-resolutions-continuing-journey-to-fluency\/\">My 2021 Language Routine &amp; Resolutions &#8211; Continuing My Journey To Fluency<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to move your business to Cayman and pay no tax Cayman is one of the most beautiful islands in the Caribbean and a top offshore banking and investment jurisdiction. The Cayman Islands are the pinnacle of the international tax and business world. Here\u2019s how to move your business to Cayman and pay zero US [&hellip;]<\/p>\n","protected":false},"author":686,"featured_media":28070,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[1401],"tags":[302,8578,396,406],"yst_prominent_words":[1977,6100,27806,2633,27807,2627,4022,8552,8550,6764,3349,4499,8554,8555,2131,6075,8551,8553,1804,8556],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2017\/03\/beach-4047678_1280.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/10233"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/686"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=10233"}],"version-history":[{"count":13,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/10233\/revisions"}],"predecessor-version":[{"id":46895,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/10233\/revisions\/46895"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/28070"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=10233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=10233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=10233"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=10233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}