Why high net worths choose residency and retirement in the Cayman Islands – an advisor’s perspective

As Much Of The World Shelters In Place In Response To The COVID-19 Pandemic, Many Are Considering And/Or Re-Evaluating Future Plans For Their Place Of Residency And Retirement. We Spoke To Advisors About Why So Many High-Net-Worth Individuals Choose The Cayman Islands As Their Home Base.

Since our shareholder Ken Dart relocated his global headquarters and family office to the Cayman Islands over 25 years ago, other wealthy international families have chosen the Cayman Islands for residency and retirement.

Many of the reasons why Ken Dart selected the British Overseas Territory then hold true today, except to say that the Cayman Islands has now become an even more attractive proposition. Two leading international private client lawyers, Hal Webb and Matthew Sperry, explain why Cayman is the first choice for relocation, retirement or residency by investment for many of their clients.

Hal Webb is a partner and head of international private client services with Bilzin Sumberg, based in Miami, Florida. Most of Hal’s clients are from Latin America, and he also has many clients from Europe, Asia, Canada and other parts of the world. Hal is a member of Legal Week’s Private Client Global Elite, ranked in the leading international legal directories and a member of the Florida Super Lawyers and The Best Lawyers in America for tax law, trusts, and estates.

Matthew Sperry is a partner in the international private client team with Katten, based out of New York and Chicago. He is a member of the Legal Week Private Client Global Elite, ranked in the leading international leading directories and part of the Global Leaders Forum for wealth management.

Both work with international clients and families looking to relocate from their home jurisdiction for a variety of reasons including estate planning, tax planning, security issues, socio-political issues, lifestyle reasons or retirement.

Hal Webb explains: “For full-time movers, a relocation is sometimes tax-driven or for retirement. Cayman is a great place if you want a peaceful lifestyle, beautiful beaches and modern amenities. That really appeals to people – as they want to have all the high-level amenities they are used to, yet live on a Caribbean island, and still be relatively close to their former home.”

RBC In Camana Bay

Matthew Sperry comments specifically on what US retirees are looking for: “For US retirees there can be some tax advantages with a permanent relocation to Cayman. US persons can escape high state taxes, including property and sales taxes. In addition, some of the individual states impose death taxes, and if you take up residence in Cayman you are not going to be subjected to that either.”

Cayman’s stable government, economy, and strong rule of law also feature in the jurisdiction’s appeal. Sperry explains: “Most clients are looking for stability and they want to know there is strong rule of law. We see a lot of Latin American families, Middle Eastern families and Asian families who are very concerned about that aspect.

“Cayman is underpinned by English common law, and it has an excellent judiciary with specialist judges who are accustomed to dealing with cross-border, international matters. That gives people a level of confidence that you don’t get from some other jurisdictions.”

Webb agrees: “Many people settle on Cayman, over the other Caribbean islands, because it is a sizable financial centre and a safe place to live. I think very highly of the professional community in Cayman, and believe there is a great deal of brain power there. That is probably one of the reasons why many family offices have recently moved their operations to Cayman.”

Sperry also highlights Cayman’s reputation as a world-leading financial centre and investment hub: “Cayman is a great base for investment, which is appealing to many wealthy international families. It’s a very sophisticated, international finance hub, and gives wealthy families access to all the international markets whilst giving the benefit of being positioned offshore.”