Cayman Islands/Caribbean tax question

[montel]

if you work in the carribean (eg. Cayman Islands), do you get the tax exemption as an overseas resident or do you have to be a resident of the carribean country to work tax free?

tnx

[The Ghost]

I don't know but the water is absolutely beautiful in the Cayman Islands. That and a burger and a coke is $30.

[detoxed]

I think that depends on the country you are a citizen of.

[romeoboi]

a lot of carribean countries offer now taxes if your business is incorporated on the island but you don't conduct any actual business there.... you tend to run into more trouble with the US (of whatever your home country is) government rather than the host country.

[Webby]

Originally Posted by montel

if you work in the carribean (eg. Cayman Islands), do you get the tax exemption as an overseas resident or do you have to be a resident of the carribean country to work tax free?

tnx

Tax exemption? There are no taxes in the Caribbean (generalized statement - depends on the island!), but Cayman has no taxes. A usual method of qualifying to work/reside is simply form a corp and be an employee and there is no reason for formal residency.

The above don't apply if you are a US citizen, tho you can work/reside there as long as you submit tax data to the IRS as normal. The IRS allows something over $70K/year for foreign residency, but ya gotta check out the specific rulings on time spent abroad to qualify.

If you are from most other countries and live and work in the Carribbean, you pay no taxes to your country of citizenship.

[HollywoodChris]

Originally Posted by Webby

Tax exemption? There are no taxes in the Caribbean (generalized statement - depends on the island!), but Cayman has no taxes. A usual method of qualifying to work/reside is simply form a corp and be an employee and there is no reason for formal residency.

The above don't apply if you are a US citizen, tho you can work/reside there as long as you submit tax data to the IRS as normal. The IRS allows something over $70K/year for foreign residency, but ya gotta check out the specific rulings on time spent abroad to qualify.

If you are from most other countries and live and work in the Carribbean, you pay no taxes to your country of citizenship.

that sounds right.
the 70k can be claimed for you and a spouse too I believe 1 time for a total of 140k but you do maintain more then half the year out of the US from what I remember.