Thanks Capt Marble.
We have spent many years as a group perfecting all aspects of this & future projects to provide many benefits for aircrew from all over the world.
In Canada non-resident aircrew pay taxes on the amount of time that they fly in Canadian airspace. For example Vancouver - Hong Kong is 48 minutes outbound and 42 minutes inbound over a 13-hour flight or about 11% of the flight. Revenue Canada has analyzed every route they fly right down to the prevailing winds and they file tax returns on that basis. So on the above basis that pilot flies 3 of these pairings (flights) a month and legally reduces their taxes from about 50% to 11% as a benefit of residency in the Cayman or any other tax free jurisdiction. Not Bad!!!!!!!
The US is a different story, there are only 2 countries in the world that tax on citizenship one being the US and the other is the Philippines. US non-residents can in some instances receive the first * $70 K totally tax-free as residents of the Cayman or any tax-free jurisdictions but generally the benefits to them are:
1.When our available financing option is chosen, interest payments could be used as deductions.
2. When rental pool units are not being occupied by an owner full time, there can be depreciation deductions available.
3. Expenses of upkeep and maintenance services could be deductions.
4. After purchase, there are no real estate taxes in the Cayman Islands. A once only payment of five (5%) percent government stamp duty is payable at the time a purchase is completed.
Combine that with the potential for a significant capital gain, a world-class lifestyle, and amenities anyone would be envious of it also becomes very attractive as a vacation residence.
Non-resident American Citizens could qualify for a US$70,000 annual deduction (US$140,000 per couple) on earnings offshore, * if they utilize the optional lifetime resident status available to villa purchasers in the Cayman Islands which is only 80 minutes to Miami.
Now with regard to Non Resident UK aircrew (the normal restrictions as per the Inland Revenue “IR 20” will apply for time permitted in the UK) flying from the UK but residing offshore in the Cayman they only pay taxes on the segment of the overall trip originating in the UK. For example lets assume a flight operated from Heathrow to Schipol to Hong Kong. The first segment (Heathrow – Schipol) would be taxed at the usual rate and the second (Schipol – Hong Kong) segment would be totally tax-free. It is similar to the Canadian system but obviously it is most beneficial to do a very short first sector and as many long segments after that as possible before returning to the UK. If an Offshore Base were available all Income would be tax-free.
This information is current and comes from Price Waterhouse in London. We also have both Price Waterhouse and Moore Stephens offices in both London & Georgetown looking into the retirement issue to see if something can be structured as the aforementioned tax benefits apply to operating crew only at this stage.
We have had almost a dozen enquiries from concerned Cyprus residents looking for alternatives. As a result we will also be discussing this matter with the Leader of Government Business in the Cayman (coincidentally he's currently in discussions in London) when he returns to see if the Government would entertain entering into a Double Taxation Agreement with the UK although this is generally viewed as a long shot for many reasons
The 7.5% mortgage rate is for those that walk in off the street IPG has negotiated a LIBOR and a US PRIME RATE Mortgage both 2-3 points below the going rate and basically will be determined by the individual according to the terms etc they are looking for, so in a nutshell it would be competitive.
Finally you are correct IPG will be looking at a POSSIBLE project in Europe. Over the course of our many years of evolution we have developed a strict set of criteria for the development of an all-inclusive project. The tax benefits are certainly a very important component of this strategy but not the sole determining factor lifestyle and uplift are also very important factors. We don’t see that in Croatia and from what we’re hearing about Cyprus that may not even provide the tax benefit in the near future.
If you happen to know of any other interesting jurisdictions please let us know as we are in the very preliminary stages of our due diligence and would be pleased to receive suggestions from interested parties. We would also be very interested in an operating Resort that is looking to expand or requires an equity infusion.
**** Sorry Danny as usual I used up more than my share of the Bandwidth ****
