Caymans Aim to Be a Home, Not Just a Domicile

The Cayman Islands has never had any trouble attracting hedge funds to its friendly climes. But now, the Caribbean nation wants to attract hedge fund managers.

Taking advantage of new taxes on high earners in the U.K. and fears of tightened hedge fund regulation around the world, the well-known tax shelter hopes to build its own tax base by encouraging hedge fund managers to move to the islands as it struggles to fill a budget deficit.

The British overseas territory plans to make it easier for family members and domestic staff of financial professionals to get work permits. And it is looking squarely at the mother country for recruits.

“People are running from the U.K. and metropolitan areas because of the tax regime,” Premier McKeeva Bush told Reuters.

“It’s what I encourage, it’s a new drive,” Bush said of the Caymans’ bid for immigrants. “You bring your children.”

Almost 10,000 hedge funds—the majority of the industry—are registered in the Cayman Islands.

Bush said he hopes to attract some US$2.7 billion in investment over the next three years.