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The Cayman Islands are well known for their touristy atmosphere and their water sport themes on Grand Cayman, Cayman Brac, and Little Cayman. However, there is a lot more to love about this Caribbean paradise besides just the natural ambience. One of the reasons why the Cayman Islands are so popular among American, Canadian and British visitors (and indeed visitors of all nationalities) is because of the 'no taxation' law. Caymanians as well as businesses in the Cayman Island companies pay no direct taxes. Instead the government, still considered a British overseas territory, gets most of its income from indirect taxation. There are also no taxation laws on capital gains taxes, estate, gift taxes or trusts and corporations.

If you're thinking that sounds like the Caymans may have something to offer the foreign investor then you may be right. In fact, the Caymans are one of the best jurisdictions for offshore accounts anywhere in the world. The Caymans have an excellent regulatory structure, not to mention tax-free holdings and investment opportunities. Besides saving on taxes, one of the best advantages of holding an offshore account in the Caymans is the privacy factor. All of these offshore companies keep your information private, and ask only the minimal amount of information at that. Additionally, if you use nominee shareholders, directors or officers, they can all be kept anonymous.

Starting new accounts takes a short period of time, though you always need to retain control over your funds. You also have flexible legislation and a very peaceful political atmosphere, unlike some other countries that have offshore banking but are in the middle of political turmoil. Another advantage to offshore accounting in is that the fact that you can remove your assets from your nation of work, protecting yourself against losing assets in a civil trial. You can also pursue mutual funds, unit trusts and limited partnerships as well as multi-currency and hybrid funds.

What do you have to work with in the Cayman Islands? Over the years, the Cayman Islands have registered almost 1,500 mutual funds and established almost 600 bank and trust companies. All of these institutions have been licensed under the Banks and Trust Companies Law. Furthermore, Caymans' banks hold over half a trillion U.S. dollars combined.

In fact, the Cayman Islands once got in trouble because of their banks' unwillingness to break certain clients' expectations as regards privacy. In 2000, the Cayman Islands were identified by the Financial Action Task Force (FATF, an inter-governmental body) as a "non-cooperative" nation in the global fight against money laundering. After pressure from the international community increased, the Cayman Islands rewrote some legislation and was later accepted by a worldwide community and praised by FATF for its improvements.

This certainly shows the trustworthiness of the Cayman Islands international banks, as well as the financial advantages of the islands, which cannot be overlooked. Investing in an offshore banking institution may help you survive the upcoming great recession! For more information on how to get started in offshore banking visit QWealthReport.com.