Banking, Money and Taxes in Cayman Islands
Cayman Islands has one the largest and most respected financial sectors, and is home to more than 600 banks, and 100,000 companies.
Because of its tax-free status on incomes, the country is famous for having many offshore bank accounts. These offshore accounts are transparent in nature, and the islands are well-known for being open about transactions, despite the somewhat shady opinion that flares up occasionally about offshore accounts.
Expats will find that banking is efficient and easy on the islands.
Money in 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 to the US Dollar.
Notes: 100 KYD, 50 KYD, 25 KYD, 10 KYD, 5 KYD, 1 KYD
Coins: 25 cents, 10 cents, 5 cents and 1 cent
There are ATMS all over the islands and US Dollars are also widely accepted.
Banking in Cayman Islands
The islands are home to a sophisticated banking system and a large number of banks, making banking straightforward and accessible.
Opening a bank account
All expats looking to open a bank account will be subjected to a thorough check before being able to open an account. Expats should note that some banks will not offer chequing services to a new account holder who has just arrived on the island.
The following is needed to open an account:
A reference letter from one's current bank
Source of funding including salary slips and details about employment on Cayman Islands
If an expat changes jobs while on the islands, they must get a letter from the new employer stating the salary for the bank.
Taxes in Cayman Islands
Whilst the islands are famous for being a tax-haven, it is by no means completely ttax-free The government relies on indirect taxes, pushing up the prices of everyday items that can make the cost of living very expensive. However there are no taxes on income, capital gains or wealth tax, which makes the islands such an attractive destination for expats.