Expert: Robert Clark - 8/31/2008

Question
Hi,

I am a single Canadian Engineer (Male - 30 yo).  Usually, I contract jobs for Canadian Engineering firm in Canadian cities.  For example, as a Quebec’s (Canadian Province) resident, I work under contract in British Columbia (Canadian Province) for a year now as an expatriate and my salary is taxed in Quebec.  

Now, I want to get some contracts in Asia for a few years and work there as a Cayman’s expatriate.

If I keep my official address in Quebec and I work as an expatriate in Asia, my salary will be taxed in Quebec.

I want to know if it’s possible to become a Cayman's
Resident  without staying there “full time”.  Do I need to buy a property there to be an official Cayman's resident?  As a contractor, I will be working in Asia and possibly be back in Cayman one or two time a year.

You will understand that, by being a Cayman resident, my salary will be taxed there, not in Quebec/Canada where the taxation over $100K/year is nearly 50%.

Best Regards

Jeff


Answer
Jeff
I'm sorry, I can't give you a definitive answer of this but I hope I can give you some pointers.



Firstly, you can't just become a resident.  It is possible to have property in Cayman and visit it on a regular basis, but to have a right of residency is another matter - taking at least eight years.  See some of these resources that should clarify the situation for you:

http://www.newresident.ky

http://www.immigration.gov.ky/portal/page?_pageid=1608,1&_dad=portal&_schema=POR...

It may be that you could be classed as a person of Independent Means, (see http://www.immigration.gov.ky/portal/page?_pageid=1608,2524581&_dad=portal&_sche...), but I don't think that this would entitle you to the tax break that you are expecting/seeking.

I think it may be best to seek advice from a Tax specialist in Canadian/non-domicilary tax issues for the country you intend to work in.

Good luck!

Robert
http://www.gotocayman.com