Banking, Money and Taxes in the Cayman Islands

Managing your finances in the Cayman Islands is straightforward, thanks to the country’s well-regulated banking system and welcoming tax environment. With no personal income tax, it’s a fantastic place to not just earn but also save. Just keep in mind the residency requirements, banking regulations, and international tax obligations to navigate smoothly.

The Cayman Islands is famous for its offshore banking, financial security and transparency. Most transactions happen in US dollars (USD) and Cayman Islands dollars (KYD), making currency exchange a piece of cake.

Banking in the Cayman Islands is efficient and accessible, ensuring that you can manage your money with ease.

Money in the Cayman Islands

The official currency is the Cayman Islands Dollar (KYD), divided into 100 cents. It is commonly abbreviated as CI$ before the amount. The KYD is permanently fixed at an exchange rate of 1 KYD to 1.20 USD.

• Notes: KYD 1, KYD 5, KYD 10, KYD 25, KYD 50, KYD 100
• Coins: 1 cent, 5 cents, 10 cents, 25 cents

Useful links

• Cayman Islands Monetary Authority

Banking in the Cayman Islands

The Cayman Islands boasts a world-class banking system, hosting a mix of local and multinational banks. With its strong regulatory framework and no direct personal income tax, managing your finances here is efficient and accessible.

Local banks include Cayman National Bank, Fidelity Bank, Butterfield Bank, and CIBC FirstCaribbean. Several multinational banks also operate in the region, including RBC Royal Bank, Scotiabank & Trust, HSBC (which offers corporate services only), and Deutsche Bank (corporate services only).

Opening a bank account

Opening a bank account in the Cayman Islands requires numerous key documents. You must provide your passport, proof of residence, and, if moving for work, an official letter of employment detailing your salary, position, and start date.

A prior banking history – such as old statements or a reference letter – can streamline the process. Banks also require an initial deposit, which varies by institution. Due diligence is conducted rigorously to ensure adherence to global anti-money laundering (AML) regulations.

ATMs and credit cards

ATMs are widely available throughout the islands, particularly in Grand Cayman. Some ATMs dispense both KYD and USD, but withdrawals in USD often come with an additional foreign exchange fee of 2 to 3 percent. For international cardholders, ATM fees range from KYD 2.50 to KYD 5 per transaction, with foreign exchange fees potentially increasing costs further. US dollars are also accepted in most establishments, although change is typically given in KYD.

Taxes in the Cayman Islands

The Cayman Islands is a tax-neutral jurisdiction, meaning there are no taxes on income, property, or capital gains. This characteristic makes it an attractive location for individuals and businesses seeking financial efficiency. However, it is important to note that high import duties, which range from 22 percent to 27 percent, drive up the cost of living.

While you won’t pay taxes locally, you may still be liable for taxation in your home country. It is critical to consult a tax specialist to ensure compliance with foreign tax obligations. US citizens, for instance, must report Cayman-based accounts under FATCA regulations.