Cayman Islands or British Virgin Islands: where should you start a business?
The British Virgin Islands ranks higher in the index, 05 against 08. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Companies pay no corporate income, capital gains or withholding tax, and no VAT is charged. Individuals pay no income or inheritance tax.
Companies are generally exempt from income tax, and no withholding tax or VAT is charged. Individuals pay no income tax, although a payroll tax applies.
Set-up
Registration costs CI$700 to CI$2,568 by capital band. An express service completes within 24 hours for CI$500 more, and no minimum capital applies.
Incorporation costs US$550 where up to 50,000 shares are authorised, and the annual fee is the same. No standard processing time is published.
On the ground
Directors need not live in the islands, but the company must keep a registered office there. Economic substance requirements depend on the activity.
Every company must keep a licensed registered agent in the BVI at all times, and no director needs to live there. Substance depends on the activity.
Ownership
Since 28 February 2025 the beneficial ownership register is open only to persons with a legitimate interest, including journalists, at CI$75 an application.
Since 1 April 2026 the register is open only to persons with a legitimate interest, for anti-money laundering purposes, at a fee of US$75.
Residence
The Certificate of Direct Investment requires at least CI$1,000,000 invested in a licensed business that generates employment.
The government lists a self-employed work permit for non-Belongers who work in the territory on their own account.
Living and working
Currency
Cayman Islands dollar.
US dollar.
Time zone
UTC-5.
UTC-4.
Personal tax
There is no income, inheritance, capital gains, gift or property tax, but most real estate sales carry 7.5% stamp duty.
There is no income, capital gains, inheritance or wealth tax; employees can pay 8% payroll tax, and a property tax exists.
Flights
Services include British Airways to London via Nassau and Delta and JetBlue to New York; there is no Dubai or Singapore service.
The Beef Island airport lists nonstop flights to San Juan, but no direct London, New York, Dubai or Singapore service.
Cayman Islands vs British Virgin Islands: common questions
The Cayman Islands: Companies pay no corporate income, capital gains or withholding tax, and no VAT is charged. Individuals pay no income or inheritance tax. The British Virgin Islands: Companies are generally exempt from income tax, and no withholding tax or VAT is charged. Individuals pay no income tax, although a payroll tax applies.
The Cayman Islands: Registration costs CI$700 to CI$2,568 by capital band. An express service completes within 24 hours for CI$500 more, and no minimum capital applies. The British Virgin Islands: Incorporation costs US$550 where up to 50,000 shares are authorised, and the annual fee is the same. No standard processing time is published.
The Cayman Islands: Directors need not live in the islands, but the company must keep a registered office there. Economic substance requirements depend on the activity. The British Virgin Islands: Every company must keep a licensed registered agent in the BVI at all times, and no director needs to live there. Substance depends on the activity.
The Cayman Islands: Since 28 February 2025 the beneficial ownership register is open only to persons with a legitimate interest, including journalists, at CI$75 an application. The British Virgin Islands: Since 1 April 2026 the register is open only to persons with a legitimate interest, for anti-money laundering purposes, at a fee of US$75.
The Cayman Islands: The Certificate of Direct Investment requires at least CI$1,000,000 invested in a licensed business that generates employment. The British Virgin Islands: The government lists a self-employed work permit for non-Belongers who work in the territory on their own account.
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