Summary
The UK’s new tax policies are driving high-net-worth individuals to seek friendlier shores, with the Cayman Islands emerging as a prime destination. Its tax-neutral environment, robust financial sector, and luxurious lifestyle are key attractions. Even celebrities like Tom Cruise and Taylor Swift have been drawn to the islands’ privacy and beauty. This shift highlights the Cayman Islands’ growing appeal as a haven for wealth and those seeking a sophisticated island lifestyle.
New legislation for Non-Dom (Non-Domicile) tax status
Coming into effect in April 2025, legislation was passed last year in the UK in a bid to raise tax revenue, doing away with its centuries-old ‘Non-Dom’ (non-domicile) tax status and the impact has already had a profound effect. The legislation gave preferential tax treatment for wealthy foreign residents so they did not have to pay UK taxes on their overseas income and capital gains. With that preferential status being swept away in just a couple of months, the UK’s ultra-wealthy are searching for more accommodating jurisdictions in which to reside.
According to a report from imidaily.com, the above move, coupled with the Labour Party’s budget changes of 2024, has encouraged 10,800 wealthy individuals to leave the jurisdiction, a 157% increase from 2023.
The Henley Private Wealth Migration Dashboard, published on 18 June 2024, is a dataset which represents the top 10 countries globally in terms of projected net inflows of millionaires for 2024. Millionaire migration, it says, is a leading indicator of the overall health of a country and its economy. Top in its list is the UAE, with 6,700 projected net inflows of millionaires in 2024, followed by the USA with 3,800 and Singapore with 3,500.
Tax-friendly jurisdiction
The desire to move wealth out of the UK and into a more tax-friendly jurisdiction has been created following some serious financial planning. Nigel Green, CEO of deVere Group, says: “This is not a knee-jerk reaction – it’s a strategic response to an environment that has become increasingly hostile to wealth and investment.”
The results of a survey conducted by deVere Group (one of the world’s largest independent financial advisory and asset management organisations) found that there was a seismic shift in attitudes toward the UK’s financial environment.
“Families, business owners, and investors with UK financial connections are exploring options to mitigate the impact of the new tax landscape, which includes higher capital gains and inheritance tax changes on pensions, the abolition of non-domiciled tax status, and increases in National Insurance Contributions,” the group stated.
While the Cayman Islands does not appear on the Henley dataset top ten list, the imidaily.com article states that …” Caribbean islands (particularly the Cayman Islands), Canada, and Singapore have also arisen as key destinations…”
The Cayman Islands: A prime destination for former UK Non-Doms
The Cayman Islands is appealing to former UK Non-Doms as an excellent location in which to live and work for several reasons. Firstly, it is an English-speaking British Overseas Territory overseen by a Governor appointed by the King and has a strong and stable local government. This means those individuals familiar with operating within a UK legislative (English common law) framework will be comfortable with the Cayman Islands legislative framework. The Governor has overall responsibility for the Royal Cayman Islands Police Service and defence, and the Islands are regularly visited by British defence forces who have also helped to shape an effective local defence-force regiment.
A tax-neutral financial hub
The jurisdiction offers a tax neutral environment for residents. This means they pay no income, capital gains or property taxes. Government revenue is, instead, generated from stamp duty applied to imported goods and on real estate transactions. The Government also raises considerable revenue from the fees paid to it by the Cayman Islands’ financial services industry, a global leader when it comes, in particular, to investment funds, captive insurance, and reinsurance. Those who invest in the Cayman Islands have access to some of the world’s leading financial services professionals, who are often ranked at the top of their field globally, individually, and also collectively as a firm. Services include world-class and globally renowned banking, insurance, fund services, shipping registration, structured financing, company management, trust companies, as well as securities listings on the Cayman Islands Stock Exchange.
Cayman has also rapidly developed into a leading centre for the provision of family offices, thanks to the availability of this plethora of professional services on island, whereby private advisory groups manage the wealth and financial affairs of a single high-net-worth family.
World-class connectivity & lifestyle
Located just an hour’s flight from the US, the Cayman Islands has excellent flight connections to several key US cities, including Miami, New York, Philadelphia, Colorado, Tampa, and Charlotte. There are also direct flights to Canada which means Canadians are also finding the Cayman Islands attractive as a relocation destination. A direct flight to the UK via the Bahamas (for a quick refuel) operates three times per week throughout the year, so maintaining connection with the UK is very straightforward.
Record-Breaking Months
March 2024 marked the second-highest monthly arrivals in the destination’s history, with 57,040 stayover visitors. December also stood out, attracting 52,046 visitors, the second-highest for the month on record and a 4.3% year-over-year increase. Source: TTW
There are also direct flights to a host of other locations, including Jamaica, Cuba, Panama, and Honduras. This impressive connectivity has helped to elevate the Cayman Islands as a highly desirable vacation spot for high-net-worth Americans, many of whom have second or third homes in this tropical paradise.
Infrastructure such as transportation, entertainment, culinary offerings, and accommodation are on a par with service levels in the US, with the most luxurious of resorts located along Cayman’s prized Seven Mile Beach. These include The Ritz-Carlton, Grand Cayman, the Kimpton Seafire Resort and Spa, the Westin Seven Mile Beach and the Grand Cayman Marriott Resort and Spa.
Soon adding to that impressive list are the Kailani Grand Cayman Curio Collection by Hilton and the Grand Hyatt Grand Cayman Resort and Spa. New to the Cayman resort offering will be the Mandarin Oriental offering owners and resort-lifestyle seekers even more incredible options. Recently, conversations with local real estate professionals have included hints that the renowned Four Seasons brand may soon be confirmed for the Cayman Islands.
Also – shopping has been elevated to new heights with the development of Camana Bay, a huge draw for families, in particular, who enjoy this pedestrianised location filled with shops, restaurants, and entertainment, sympathetically designed with families in mind.
The provision of healthcare services, rapidly becoming a tremendous burden in many developed countries, is first class here in the Cayman Islands, with three excellent hospitals providing an entire raft of healthcare services and physicians and GPS all providing exemplary services.
Cayman enjoys some truly spectacular properties, from stunning ultra-modern beachfront condominiums with every amenity available, to impressive family homes that are either ocean or canal-front. New multi-use complexes, particularly in the southern part of Grand Cayman, that combine beautiful condominiums with excellent restaurants and shops are becoming a popular draw for residents, while peace and quiet is found in the sanctuary of exemplary homes located in the more easterly districts.
A celebrity destination of choice
The Cayman Islands are a popular destination for celebrities due to its beautiful beaches, luxurious resorts, and privacy. In recent times, resorts like The Kimpton Seafire Resort and the new Indigio Hotel are sought-after hot spots. Topping the list of private and exclusive celebrity destinations is Tillies, a popular restaurant located in Grand Cayman, at the Palm Heights hotel on Seven Mile Beach. The hot-spot is known for its location on one of the world’s most awarded beches, stylish ambiance, lush lansdcaping and serious celebrity sightings. Celebrities who have been rumoured to visit the Cayman Islands include
Taylor Swift, Iggy Pop, John Legend, Alicia Keys, Tom Cruise, Bella Hadid, Lourdes Leon, Steven Gerrard, Nikki Glaser, Richard Branson, Mark Cuban, Nicole Kidman, Keith Urban, Selita Ebanks (a native Caymanian), Rhianna, Reese Witherspoon, Harry Styles, Chloë Sevigny, Ashton Kutcher, Mila Kunis, Orlando Bloom, Anna Kournikova, Eric Ripert (and all his famous chef friends who come for Cayman Cookout!), Katie Couric, Al Pacino, Arnold Schwarznegger, Zoe Saldana, Bill Gates, Jeff Bezos, Paris Hilton, Martha Stewart, Gordan Ramsay, Justin Bieber, Prince Harry, Meghan Markle, Emily Ratajkowski, Leonardo DiCaprio, Jessica Alba and the Black Eyed Peas (sans Fergie!).
Cayman’s growing luxury & real estate market
Because of the success of its two key economic streams – financial services and tourism – residents enjoy a particularly high standard of living. While the allure of the Cayman Islands has been known by the lucky few who live here, the new economic climate in the UK is now encouraging many more individuals to seek residency in this highly desirable location for themselves.