Potential relocation to the Cayman Islands for a wee while

Potential relocation to the Cayman Islands for a wee while

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Discussion

Matt p

Original Poster:

1,051 posts

215 months

Saturday 24th September 2022
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Howdy Gents,

Would any of you fine scholars be able to shed some light on living/working in the Cayman Islands please?.

Long story short, I’ve grown increasingly jaded with my current employer over the last 18 months. Various things going on in the back ground have culminated in me firing off my C.V to get a feel of what else is out there. I’ve no issue working abroad as I’ve had short stints in various locations and thanks to a previous partner have managed to explore a lot of the world.

Over the past few weeks an engineering company has taken an interest. A rather good and frank conversation with one of the directors was followed up with a more technical conversation last night with the operations manager who explained a little further to the infrastructure that they install/maintain etc. Thankfully some of the more critical equipment has been supplied by the Manufacturer that I currently work for. So from a general work perspective it will not be much different to over here.

It will be possible to let/rent my home out over here. Also communication with my son will be fairly straightforward thanks to modern technology. My family will be visiting and he will be travelling with them to visit in the school holidays etc.

Salary wise it will be a very big jump to what is currently on offer here in the U.K, another side is that given that the £ is on its backside, the prospect of being paid in U.S Dollars is appealing.

I appreciate it’s not cheap to live out there as carrying out an initial look has shown that it can quite eye watering. However the potential to earn well is a darn good offset.

Thanks in advance.

Getragdogleg

9,106 posts

190 months

Saturday 24th September 2022
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Where will you have to pay tax?

Muzzer79

11,060 posts

194 months

Saturday 24th September 2022
quotequote all
Matt p said:
Salary wise it will be a very big jump to what is currently on offer here in the U.K, another side is that given that the £ is on its backside, the prospect of being paid in U.S Dollars is appealing.
How long is “a wee while”?

Sterling may be on its arse now, but that may/will likely change in the future.

Matt p

Original Poster:

1,051 posts

215 months

Saturday 24th September 2022
quotequote all
18months to two years initially, It has the potential to go on a lot longer if needed.

Matt p

Original Poster:

1,051 posts

215 months

Saturday 24th September 2022
quotequote all
Getragdogleg said:
Where will you have to pay tax?
This is the bit I’m really unsure of and hoping that maybe someone on here could say. smile

db10

281 posts

270 months

Saturday 24th September 2022
quotequote all
if you are there for more than 6 months and dont return to the uk for any length of time then you are likely to cease to be UK tax resident - is your employment contract with the UK company?

mikef

5,249 posts

258 months

Saturday 24th September 2022
quotequote all
I was based for 18 months in the Bahamas, worked with expats based in Cayman

Pro’s
- amazing weather (apart from the odd hurricane)
- no local income tax
- no UK Income tax if you meet non-res rules, which change from time to time
BDO said:
An individual will be non-resident for a tax year if they are present in the UK at midnight at the end of the day for less than a specified number of days in the tax year in question, as follows:
- For an individual who was resident in the UK for one or more of the preceding three tax years the limit is 15 days or
- For an individual who was resident in the UK for none of the preceding three tax years the limit is 45 days or
- For an individual who works abroad ‘full-time’ throughout the tax year (broadly, 35 hours per week on average), without a significant break (more than 30 days, with exceptions for annual, sick or parenting leave), the limit 90 days. Such an individual must also have less than 31 days in the tax year on which he does more than three hours’ work in the UK.
https://www.bdo.co.uk/en-gb/insights/tax/private-c...

Con’s
- isolation can get to you (the people that handled it best had relo’d from the Channel Isles or IoM)
- high prices
- the novelty of eating conch every day wears off quickly
- if you have to return to the UK in an emergency for an extended period or permanently (it can happen), you get hit for all that UK tax you thought you’d avoided on local earnings

Edited by mikef on Saturday 24th September 21:24

Matt p

Original Poster:

1,051 posts

215 months

Saturday 24th September 2022
quotequote all
mikef said:
I was based for 18 months in the Bahamas, worked with expats based in Cayman

Pro’s
- amazing weather (apart from the odd hurricane)
- no local income tax
- no UK Income tax if you meet non-res rules, which change from time to time
BDO said:
An individual will be non-resident for a tax year if they are present in the UK at midnight at the end of the day for less than a specified number of days in the tax year in question, as follows:
- For an individual who was resident in the UK for one or more of the preceding three tax years the limit is 15 days or
- For an individual who was resident in the UK for none of the preceding three tax years the limit is 45 days or
- For an individual who works abroad ‘full-time’ throughout the tax year (broadly, 35 hours per week on average), without a significant break (more than 30 days, with exceptions for annual, sick or parenting leave), the limit 90 days. Such an individual must also have less than 31 days in the tax year on which he does more than three hours’ work in the UK.
https://www.bdo.co.uk/en-gb/insights/tax/private-c...

Con’s
- isolation can get to you (the people that handled it best had relo’d from the Channel Isles or IoM)
- high prices
- the novelty of eating conch every day wears off quickly
- if you have to return to the UK in an emergency for an extended period or permanently (it can happen), you get hit for all that UK tax you thought you’d avoided on local earnings

Edited by mikef on Saturday 24th September 21:24
Ah that’s perfect Mike, thank you for taking the time to reply. thumbup

Part of the call I had last night was about cabin fever and wanting to get off the island for a few days. It was mentioned that Cuba was a 30min hop, Miami an Hr away and Tampa about the same. I would need to get to Tallahassee for a few days though which is only a little further north.

mikef

5,249 posts

258 months

Saturday 24th September 2022
quotequote all
Yeah, from Nassau Miami was 30 minutes on Chalks seaplane flight that left from the harbour outside our office - with flight and hotel it was still cheaper to spend a weekend partying in Miami than in Nassau

Our colleagues in Cayman used to come over to Nassau for the bright lights, so I imagined it might be a bit like the out islands smile

r3g

3,750 posts

31 months

Saturday 24th September 2022
quotequote all
mikef said:
- high prices
- the novelty of eating conch every day wears off quickly
This ^.

Also note that 90% of the Cayman's landmass is only about 1ft above sea level, so the entire place floods whenever the weather gets more than a bit breezy.

Matt p

Original Poster:

1,051 posts

215 months

Wednesday 28th September 2022
quotequote all
Just an update.

Employment offer has landed this morning. Currently running some back of fag packet man maths and looking at a place to rent over there.

Sucking it up for 12-18months could be quite beneficial given the current economic storm brewing here in the U.K.

mikef

5,249 posts

258 months

Wednesday 28th September 2022
quotequote all
When I worked in the Bahamas was the last time that the dollar approached parity with the pound. It was a good time to be earning in dollars and paying a mortgage here, so should also be true now

mikef

5,249 posts

258 months

Wednesday 28th September 2022
quotequote all
Matt p said:
looking at a place to rent over there.
Your employer should provide that for at least the first month - something to negotiate for

If you’re not going out with family, consider house-sharing with other expats once you get out there, most of us did that

Matt p

Original Poster:

1,051 posts

215 months

Wednesday 28th September 2022
quotequote all
Hi Mike,

I really appreciate the replies. The company I’m potentially going to work for has offered as you say one month lodging. This is super helpful and they have also offered to ship all my equipment/tools over in a crate.

The company is based on Grand Cayman and the compensation/salary package is paid in KYD. Running the rough numbers it’s a 30% up lift to over here, that’s without taking into account the tax I would pay in the U.K.

House sharing really wouldn’t be a problem for me at all, however if a suitable studio/one bed place popped up then I’m more than happy with that also.