Why You Need THE CAYMAN CONNECTION
To Help You protect your A S S E T S
The sad truth is very few of us plan for loosing our assets. And rarely do we take steps to protect our assets in advance of a problem.
When do most people act to protect their hard-earned money? Right…after the damage has been done. But doing it then might be too late. Hindsight, as they say, is 20/20. Asset protection works the same way. None of us wants to think about things like business failures, divorce, lawsuits, or death and taxes. But, with just a little bit of foresight and planning, you can cut the risks of losing everything in a lawsuit. And, you can save your family thousands of dollars on your estate taxes, or even cut your tax bill.
The good news is that protecting your assets can be a lot less complicated — and a lot less expensive — than you probably imagine.
For example, there are many simple and inexpensive things you can do right now—which will cost you virtually nothing but a little bit of your time—that will greatly reduce your chances of being the victim of a high-priced lawsuit.
There is a whole world of opportunities for profits, privacy, stronger asset protection, and reduced government interference, with a bit more advanced planning. Thousands of smart thinking people are taking advantage of these perfectly legal opportunities right now…and you can do the same.
A New Lawsuit is Filed every 20 Seconds in America
We've all seen these headlines: "jurors Award $9.7 Million in Battery Blast" "Boy,7, sued when he rode bike into street causing truck driver to swerve" "Landlord Assessed $1 Million in Damages" "Mother sued for $400,000 in unpaid bills for son who died waiting for liver transplant" "$1 Million award for Bee Sting" "Chef sues in Attack by Goose"
Some of these stories may appear bizarre, even amusing. But make no mistake. If you happen to be at the receiving end, they could prove deadly. Litigating in America is serious stuff. A lawsuit from a totally unexpected source can wipe out everything you have worked so hard to accumulate. In one big fell swoop, your lifetime savings could become prey to a judgment creditor and his gold-digging attorney.
Investing and/or doing Business in a Foreign Country
Most North Americans will never have the experience of living in a foreign country. It is true that Americans and Canadians have had one of the highest standards of living in the world, and never had reason to venture beyond the borders of those countries in search of something more. However, things are changing, expanding perspectives and learning about different cultures and spending some time not just as a tourist, but as an investor / business person in a foreign land can be quite the eye-opening experience.
I know that of which I speak. At age 50, after losing my wife to cancer, I packed my worldly possessions and moved to the Cayman Islands. I filed for Permanent Residency as a retiree without the right to work. After two years I was able to apply for the right to work. So two years later I applied for the right to work and was turned down.. Oh well, at least I was a permanent residence and could do a lot of personal things to generate cash flow without needing a work permit… As a American citizen I was still required
to pay tax on my income but I did have a US $ 70,000.00 per year tax exemption at the time to offset earnings.. Not too bad..
Over the past 15 years I’ve help people purchase real estate investments as their Exclusive Buyers Broker, connecting them to the best property managers to handle their property. setting them up with attorneys’ & accounts for long term asset protection and estate planning, as well as working for them as a personal consultant for their Cayman interests.
I wished I had a Cayman Connection during my first few years (and I lived here..) as I would have saved quite a lot of money having someone clear the potholes and other obstacles I dealt with.
The one thing I’ve learned is that “Tax Free” property investments in Cayman is about as safe as it gets. I’ve also found that having parts of your business in a “Tax Free” country has some great advantages as well. Click-Here for Cayman Tax info.
Let's take a look at the Cayman Islands for Investments
Many knowledgeable investors in their quest for alternative strategies have turned to the real estate market particularly in the Cayman Islands. The Cayman Islands have no property taxes and there is no direct taxation; however, government revenues are derived from stamp duty on property sales, import duties, government licenses and fees. The infrastructure is of first world-class stature, telecommunications approach state of the art, and air transport services are dependable and readily accessible from the United States, the United Kingdom, Canada and the European Union and regionally.
The real estate market has substantially increased during the past several years and many investors are now taking advantage of this secure investment. In 2006 Government reduced the Stamp Duty to 4% for Caymanian purchasers and slightly raised the stamp duty from 5% to 6% Island wide, with the exception of certain areas of the West Bay peninsula and the commercial centre of George Town, which is currently 7½% of the assessed market value. This excludes the value of any moveable property involved in the sale such as furniture. Normally the price paid for the real estate is accepted as the market value but the stamp duty authorities are entitled to (and sometimes do) carry out their own valuation. In practice the purchaser normally pays this stamp duty but the parties may agree otherwise and should specify this in the sale agreement. There is an equivalent duty payable on the transfer of shares in a corporation owning real estate in the Cayman Islands where a change in beneficial ownership is involved.
The Cayman Islands offers excellent investment and real estate opportunities. There is a demand for properties in the Seven Mile Beach area and high-end condominium properties on all three islands. The demand for ocean front properties shows great potential for the future. There is also a market for mid-range properties developed in South Sound and the George Town areas in close proximity to the central business area. Seven Mile Beach condominiums purchased at fair market value and generating a long-term rental income can provide a return of 5% to 10% per annum whereas smaller units in the South Sound and George Town areas may generate a return of 6%-10% per annum. Property appreciation has historically been excellent in the Cayman Islands. Similarly, beach front condominium units in the Cayman Kai/Rum Point area that provide rental income is becoming increasingly attractive to both resident and foreign investors alike.
Property transfers are governed by the Registered Land Law and based on the Registered Land System. Details of the titles and the land system are recorded in a public land register at the Land Registry Office. The Cayman Islands Government effectively guarantees property title; therefore, title insurance is not necessary. The vast majority of property in the Cayman Islands is freehold or has absolute title; however, there are some areas along the West Bay Road area that are leasehold property because the property is leased from the Crown. The leases are usually for a period of 99 years and are typically extendable. Title in property is transferred by the execution of a Transfer of Land or Transfer of Lease document, which is filed and registered with the Registrar of Lands office. The registration process at the Land Registry usually takes approximately two to three weeks and upon completion of the registration, the property transaction will be recorded on the Land Register and the new purchaser will be the registered proprietor.
Real estate may be purchased by individuals over the age of 18 or through a Corporate Entity. There are three main types of Cayman Islands Corporations, The Ordinary Resident Company, Ordinary Non-Resident Company and the Exempted Company. The latter two are the most popular for land holding companies; however they may not carry on business in the Cayman Islands. A land holding exempted company is prohibited from issuing bearer shares and permission to own land is required from the Financial Secretary.
A Non-Resident Company is usually limited by shares which may be issued in registered form or in nominee form. A record of the shareholders must be filed with the Registrar of Companies. The offshore investor may prefer the Exempted Company because the Governor-in-Cabinet formally ‘Executive Council’ guarantees that the Company will be exempted from any future taxes levied in the Cayman Islands for a period of 20 years and may be extended for a further period of 10 years for a total of 30 years. Also, the register of shareholders is not recorded or filed with the Registrar of Companies.
There are several benefits to be gained by purchasing real estate through a corporate entity. When property is registered in a name of a company the company name will appear on the land register rather than in the name of the individual. This will provide the investor with confidentiality and limited liability. The company is managed by a local registered office and all of the statutory requirements are dealt with by Company’s Registered office for ease of management. Many registered offices provide nominee directors and shareholders. Property held by a company may be owned by a trust, for investors with estate planning requirements. The trust will own the shares in the Company, which in turn owns the property.
Whether property is purchased individually or through a corporate entity, real estate in the Cayman Islands can be a sound and profitable investment because Cayman offers opened ended real estate opportunities. The Cayman Islands are truly the “Gem of the Caribbean”