September 30, 2016
Global accountancy network, BDO, has this month launched ‘The Global Opportunities Report’ on the range of tax regimes around the world for individuals and families who are geographically mobile and looking to migrate from their home country.
In the report BDO, which has a member firm in the Cayman Islands, discusses the range of options available to migrants and some of the advantages that can be gained in the process.
The report refers to the Cayman Islands as a favourable location for migrants due to “its magnificent beaches and high standard of living”. Also the fact that Cayman has “no taxes on profits, capital gains, income or any withholding taxes charged to residents or foreign investors.”
The report also looks at migration considerations based on the individual or family’s particular situation and stage of life. It summarises the important factors to consider, depending on whether the migrant is in one of a number of categories, which are “entrepreneur”, “global executive” or “pensioner”.
When choosing a place to live, BDO recommends that entrepreneurs consider countries that: do not tax receipt of foreign dividends or capital gains; allow the ability to set their annual tax bill under a lump sum arrangement - regardless of dividends or capital gains received; that provide an uplift of assets in the base cost of shareholdings to market value on entry into the country, so that pre-arrival growth is exempt from local tax; and finally that offer the remittance basis taxation on foreign dividends and foreign capital gains.
The report also lists some of the most popular jurisdictions for economic migrants globally, which currently include Monaco, Singapore, Switzerland, the UK, Canada, Hong Kong, Ireland and Spain.
The report is released alongside a handbook from international property experts at Knight Frank called “The Global Lifestyle Review”. This report looks more closely at the quality of life and cost of living aspects of various jurisdictions. The Cayman Islands features here too, as one of 15 locations in the report, along with Monaco, Tortola in the BVI, Luxembourg, St Peter Port in Guernsey and others.
Tim Min, a tax director at BDO in the Cayman Islands, said: “When choosing a destination to live families often look to balance lifestyle and financial considerations to ensure that their financial affairs and global assets are structured in a tax efficient manner to ensure these assets are protected and preserved for future generations, while complying with global tax obligations. Our report aims to give an overview of some of the options currently available to geographically mobile individuals and families. We are delighted to see The Cayman Islands, with its many advantages, is included in this year’s report.”
BDO has a global Tax Practice that comprises a complete range of tax planning compliance and consulting services, including in-depth knowledge of property tax, sales tax, state and local taxes and international taxation. These services can be accessed through BDO’s locally-based Cayman Islands team.
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