When moving from a country that enforces taxation upon its citizens to the Cayman Islands—a country without direct tax—there are certain rules and regulations that need to be adhered to in relation to your 'home' country. Here we discuss the differences between the UK and US Domicile/Tax Status and what you need to do to follow the rules to ensure those taxes get paid on time.
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For information on how American and United Kingdom nationals, who now live in the Cayman Islands, are taxed by their home countries please read on.
This may sound like bad news to the US person moving to Cayman. However there is a bit of good news regarding taxation. Qualifying US persons living and working abroad may be eligible to exclude a certain amount of their foreign earned income from their US taxable income.
In this section we describe everything you will need to know, from a tax perspective, on what it takes to leave the UK and take up residence in the Cayman Islands. We offer advice if you want to keep a UK property in England, whether to rent it or not, and we cover what you will and won’t get taxed on if you still have to work commitments in England. We also discuss what to do with your UK pension, income you receive from rent, your bank account or other things remaining in England, and then what happens if you decide to return to the UK, as a full-time resident, before five years has passed.