Head-to-head comparison: Bermuda vs Cayman

• GDP

Bermuda — $5.85 billion (97,000 per capita) (*2009)

Cayman — $2.25 billion ($47,000 per capita) (*2008)

• Government debt

Bermuda — $1.3 billion forecast for 2012-13

Cayman — $600 million forecasted by June 2012

• Average income

Bermuda — $57,915 *2010

Cayman — $47,000 *2009

• Geography

Bermuda — ideally placed between key business markets of US & Europe

Cayman — well placed between key southeastern gulf states of the US

• Tax

Bermuda — No income tax. Payroll tax is 14 per cent. Land tax is on a sliding scale, payable twice a year, starting from $18 all the way up to $84,126

Cayman — levies no income, payroll, property or corporate taxes. Import duty ranges from five to 22 per cent with exceptions for books, baby formula and cameras. Duty on automobiles depends on value and can be over 42 per cent. A 10 per cent Government tax is placed on tourist accommodations with a $25 departure tax

• Infrastructure/regulation

Bermuda — solid legal apparatus based on British system. The Bermuda Monetary Authority is a widely-respected regulator of the financial services sector; adherence to Solvency II agreement enhances Bermuda’s reputation for financial propriety. On the OECD White List

Cayman — solid legal apparatus based on British system. The Cayman Islands Monetary Authority is the regulating body. Not seeking Solvency II standard but is on OECD’s White List

• Human capital

Bermuda — population 64,268, with 38,097 in the workforce (2010). Expats number 11,850 or 32 per cent. The five countries that export the most workers to Bermuda are: UK, US, Caribbean, Canada and the Azores/Portugal. Labour costs are higher in Bermuda

Cayman — population 54,878. Roughly half are expats with approximately 21,000 holding work permits. The six countries that export the most workers to Cayman are: Jamaica, The Philippines, UK, US, Canada and Honduras

• Work permit system

Bermuda — 6-year limits plus 3 year extensions for ‘key’ employees, 10-year permits for job creators

Cayman — 7-year permit holders who are ‘rolled over’ may return to work additional 7-year periods subject to a one-year gap between their periods of work. 10-year permits now also available 

• Cost of one-year/three year/10-year work permits

Bermuda — $700/$2,100/$20,000

Cayman — depends on the job. Permit for an unskilled worker is $300 per year, a skilled tradesman $1,300 per year and a CEO or general manager $17,500 per year

• Average monthly rent on one-bedroom apartment near capital

Bermuda — $2,200

Cayman — $1,050

• Rules on foreigners owning homes

Bermuda — Foreign ownership on homes is limited to the ARV band of $153,000 or higher and for condos above an ARV of $32,400

Cayman — Foreigners actively encouraged to buy homes as a step towards gaining Caymanian status

• Rules on car ownership

Bermuda — one car per home

Cayman — no limits.

*Research by Don Burgess

SPECIAL REPORT / The Cayman Islands target Bermuda

• The Cayman factor
• 'We'll protect Bermuda's turf'
• Head-to-head comparison: Bermuda vs Cayman
• Does Cayman pose a formidable threat to Bermuda?
• Bermuda needs to be fast and aggressive