The Cayman Islands are a British overseas territory located in the western Caribbean Sea. The territory comprises the islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica. The territory is a major offshore financial center in the Caribbean.

With an average income of around $42,000, Caymanians enjoy the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands GDP per capita is the 12th highest in the world. The islands print their own currency, the Cayman Islands Dollar (KYD), which is pegged to the U.S. dollar at a fixed rate of 1 KYD = 1.20 USD. However, as of April 17, 2009, U.S. $20 bill is commonly exchanged at merchants for C.I.$16.

The government’s primary source of income is indirect taxation – there is no income tax or capital gains tax or corporation tax. An import duty of 5% to 20% is levied against goods imported into the islands. Few goods are exempt; notable examples include books, cameras and infant formula. The government charges licensing fees to financial institutions that operate in the islands as well as work permit fees for expatriate employees ranging from around US$500 for a clerk to around US$20,000 for a CEO.