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fluf:
Must be nice living in luxury in the TAX-FREE Cayman!!!
I'm very intrigued about tax-free jurisdictions, only I'm a little gun-shy about moving residence since I don't have a clue how hard or how scary it is to do.
I know the benefits of being a pilot makes it easier, but how does one go about it?
Whats involved?
Was it that difficult? How long did it take?
Thanks
vestage - av8r
Must be nice living in luxury in the TAX-FREE Cayman!!!
I'm very intrigued about tax-free jurisdictions, only I'm a little gun-shy about moving residence since I don't have a clue how hard or how scary it is to do.
I know the benefits of being a pilot makes it easier, but how does one go about it?
Whats involved?
Was it that difficult? How long did it take?
Thanks
vestage - av8r
Whatever happens,.. happens!
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vestage
now this may be a long story in its entirety, but I will try to hit what i consider to be the salient points.
As far as my personal situation is concerned, I've been here a long time, nevertheless, originally from elswhere. further, please understand that i am not a financial expert or advisor and anything I say here merely serves to get you think about issues and perhaps ask the right questions.
This country is not taxfree! quite to the contrary, it merely has a different tax system, which is indirect and based on consumption.
For lets say a US citizen to move here and make Cayman his/her home, would only become (financially) interesting, after initial income taxes had been paid ( if the money was earned in the US) Note: The USA State department reserves the right to tax its citizens on their worldwide assets and income. (this may not be the exact language, but that's roughly what it means. moving along, so if you now take your "clean" money and you purchase a residence in Cayman (or invest it otherwise) any profit that results from that investment is yours in its entirety. there is perhaps an additional level of protection if you gain permanent resident status here but I don't know about that.
if you are contemplating such a move to protect some of your assets from double and triple taxation, then i suggest that you perhaps do a trial run, come down rent a house for six months, perhaps from November to April would be a good time to be away from Pittsburgh (I used to have to go to SIM there in Winter, BAC 1-11) that could give you feel for the place and the commute and then take it from there.
I hope that helps
As far as my personal situation is concerned, I've been here a long time, nevertheless, originally from elswhere. further, please understand that i am not a financial expert or advisor and anything I say here merely serves to get you think about issues and perhaps ask the right questions.
This country is not taxfree! quite to the contrary, it merely has a different tax system, which is indirect and based on consumption.
For lets say a US citizen to move here and make Cayman his/her home, would only become (financially) interesting, after initial income taxes had been paid ( if the money was earned in the US) Note: The USA State department reserves the right to tax its citizens on their worldwide assets and income. (this may not be the exact language, but that's roughly what it means. moving along, so if you now take your "clean" money and you purchase a residence in Cayman (or invest it otherwise) any profit that results from that investment is yours in its entirety. there is perhaps an additional level of protection if you gain permanent resident status here but I don't know about that.
if you are contemplating such a move to protect some of your assets from double and triple taxation, then i suggest that you perhaps do a trial run, come down rent a house for six months, perhaps from November to April would be a good time to be away from Pittsburgh (I used to have to go to SIM there in Winter, BAC 1-11) that could give you feel for the place and the commute and then take it from there.
I hope that helps
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I'm coming down to the Cayman towards the end of Nov to do just that FD take a good look around. We have quite a number of our pilots residing in the Cayman, Turks and Bahamas and as none of these countries have any Income Tax they save a ton of money over paying taxes in a high tax country like Canada.
I don't know about the US but Canadians pay taxes (income) on were they reside not on citizenship as a matter of fact Canadians can still travel on there Canadian Passport while residing elsewhere but Permanent Residency is a very important component of disassociating yourself from Canada for tax considerations.
I've finally got enough seniority I could commute fairly easily so I'm seriously considering it and with Canadians we have to be outside of Canada more than 180 days a year (for the tax savings) which I almost do that just by virtue of my job.
It sounds like you have lived in the Cayman for quite a while I assume when you say the taxes are indirect and based on consumption you mean for example food, utilities, gasoline, licquor etc.
You know I which I had paid more attention to my typing teacher in school and for that matter my spelling teachers too. Hmm maybe I should have just paid more attention to it all.
I don't know about the US but Canadians pay taxes (income) on were they reside not on citizenship as a matter of fact Canadians can still travel on there Canadian Passport while residing elsewhere but Permanent Residency is a very important component of disassociating yourself from Canada for tax considerations.
I've finally got enough seniority I could commute fairly easily so I'm seriously considering it and with Canadians we have to be outside of Canada more than 180 days a year (for the tax savings) which I almost do that just by virtue of my job.
It sounds like you have lived in the Cayman for quite a while I assume when you say the taxes are indirect and based on consumption you mean for example food, utilities, gasoline, licquor etc.
You know I which I had paid more attention to my typing teacher in school and for that matter my spelling teachers too. Hmm maybe I should have just paid more attention to it all.
Whatever happens,.. happens!
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747Pilot
what is the old saying?
"you get old too quick and wise too late"
but anyway, like probably you, I have learned to live with my shortcomings.
yes I have been here a good while and yes the taxes are on just about everything you buy, cost of living is about Miami plus 25%, if you import a car you pay 27.5% tax on the value and cost of transport, local mortgages are around 10% etc. Gas is about US$ 3.00 per gallon. so, while we live in a low-tax regime, you couldn't say the same about the cost of living.
Having said that, it doesn't matter whether you make 30k or 200K per annum, you still only eat lunch once a day, so give me our system anytime. it rewards, instead of penalizes, hard work and frugality.
"you get old too quick and wise too late"
but anyway, like probably you, I have learned to live with my shortcomings.
yes I have been here a good while and yes the taxes are on just about everything you buy, cost of living is about Miami plus 25%, if you import a car you pay 27.5% tax on the value and cost of transport, local mortgages are around 10% etc. Gas is about US$ 3.00 per gallon. so, while we live in a low-tax regime, you couldn't say the same about the cost of living.
Having said that, it doesn't matter whether you make 30k or 200K per annum, you still only eat lunch once a day, so give me our system anytime. it rewards, instead of penalizes, hard work and frugality.
Last edited by flufdriver; 31st Oct 2002 at 00:00.
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fluffdriver
There's definitely a lot of truth in that saying and I'm certainly well aware of my shortcomings as is my wife. Hey, that didn't sound quite right.
I look at your COL estimates and to use one of your examples someone earning say 200k in Canada will pay approximately 43% or 86k of it to Federal & Provincial taxes unless they establish some elaborate tax defferal scheme which usually just delays the pain. Then they will pay an additional 14% in the form of a Goods & Service Tax (GST on everything) and a 7% Provincial tax (PST on most everything) for a total of an additional 14% on after tax dollars as well as a host of other hidden taxes such as fuel, property, etc again on after tax dollars (after tax dollars is the 86k less the 200k leaving 114k which is referred to as our net income). The long & the short of it is I would take your system in a heartbeat precisely for the reasons you have stated so well in this thread.
Would you be able to give me a rough estimate for say the cost of an average family of 2 adults, eating average stuff, for an average 7 day week.
How's the plans for the Retired Pilots Rest Home coming along? Some of our guys were thinking it would be like a layover with a per diem, transportation to and from the airport etc
I look at your COL estimates and to use one of your examples someone earning say 200k in Canada will pay approximately 43% or 86k of it to Federal & Provincial taxes unless they establish some elaborate tax defferal scheme which usually just delays the pain. Then they will pay an additional 14% in the form of a Goods & Service Tax (GST on everything) and a 7% Provincial tax (PST on most everything) for a total of an additional 14% on after tax dollars as well as a host of other hidden taxes such as fuel, property, etc again on after tax dollars (after tax dollars is the 86k less the 200k leaving 114k which is referred to as our net income). The long & the short of it is I would take your system in a heartbeat precisely for the reasons you have stated so well in this thread.
Would you be able to give me a rough estimate for say the cost of an average family of 2 adults, eating average stuff, for an average 7 day week.
How's the plans for the Retired Pilots Rest Home coming along? Some of our guys were thinking it would be like a layover with a per diem, transportation to and from the airport etc
Whatever happens,.. happens!
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747Pilot
So let me get this straight you are actually thinking of a "not quite retired Pilots resthome"
Sounds pretty good actually! Could certainly customize the services offered.
To give you an idea about COL and the effects of no direct taxes, (property tax is a one-time charge on purchase)
A Canadian friend of mine came here, built his own home (self contracted, hired sub-contractors) it is now valued at US$ 750K, He said that had he purchased the house while remaining and working in Canada, he would have had to earn 2 million in order to have sufficient money (after tax) to buy the house and it obviously didn't cost him the full value to build it.
my estimate of grocery cost for a small family eating well but not buying everything pre-cooked, would be in the region of US 200 +/- 15% per week, booze and cigarettes would come on top of that. It is generally thought that the breakeven income for a family of four is around CI$ 30k per annum. CI$ 1.00 = US$ 1.25
Sounds pretty good actually! Could certainly customize the services offered.
To give you an idea about COL and the effects of no direct taxes, (property tax is a one-time charge on purchase)
A Canadian friend of mine came here, built his own home (self contracted, hired sub-contractors) it is now valued at US$ 750K, He said that had he purchased the house while remaining and working in Canada, he would have had to earn 2 million in order to have sufficient money (after tax) to buy the house and it obviously didn't cost him the full value to build it.
my estimate of grocery cost for a small family eating well but not buying everything pre-cooked, would be in the region of US 200 +/- 15% per week, booze and cigarettes would come on top of that. It is generally thought that the breakeven income for a family of four is around CI$ 30k per annum. CI$ 1.00 = US$ 1.25
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fluffdriver
I can just see a "Rest Home for Retired and Semi Retired Pilots" one of the problems would probably be all the residents would likely want there coffee and meals delivered whenever they push a button.
Oh well maybe the more junior pilots would subsidize that just to get them of the Seniority list.
That example of your friend with a Canadian house is sure true on top of that example in some provinces there is also a property purchase tax about 8k on a 500k house and then we pay an annual property tax (every year) and on a 500k house that would probably be about 7k and it goes on and on..........
Thanks for the COL estimates they sure look good to me even with the premium attached to the CI $.
Have you heard anything about the CI$ being re-valued to be pegged on par with the US$?
Oh well maybe the more junior pilots would subsidize that just to get them of the Seniority list.
That example of your friend with a Canadian house is sure true on top of that example in some provinces there is also a property purchase tax about 8k on a 500k house and then we pay an annual property tax (every year) and on a 500k house that would probably be about 7k and it goes on and on..........
Thanks for the COL estimates they sure look good to me even with the premium attached to the CI $.
Have you heard anything about the CI$ being re-valued to be pegged on par with the US$?
Whatever happens,.. happens!
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747Pilot
That rumor (about CI$ /US$) is going around every few months.
Recently the financial arm of govt made an unequivicle statement that there was no intention to adjust the exchange rate between the two currencies.
on a personal level I cannot see this happening either, if it did, an immediate result would be that the cost of all goods currently prized in CI would be increased by 20% and that would not be in anyone's interest.
Further, i think the time to do that would have been before the introduction of the CI Dollar, we could have just adopted the greenback as our official currency and saved all the cost associated with having our own.
But then again what do I know?
Recently the financial arm of govt made an unequivicle statement that there was no intention to adjust the exchange rate between the two currencies.
on a personal level I cannot see this happening either, if it did, an immediate result would be that the cost of all goods currently prized in CI would be increased by 20% and that would not be in anyone's interest.
Further, i think the time to do that would have been before the introduction of the CI Dollar, we could have just adopted the greenback as our official currency and saved all the cost associated with having our own.
But then again what do I know?
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FD & 74
I read this on the online version of the Nassau Guardian....
Crime in the Caribbean
CRIME A GROWING CONCERN IN THE CARIBBEAN: Bahamian prime minister Perry Christie has warned those involved in the Caribbean’s tourist trade that crime and filth are harming the Caribbean’s efforts to attract more tourists. “Why would a visitor want to leave a clean, safe, all-inclusive resort to be exposed to filth and rip-offs... a priority must be placed on stamping out criminal behaviour,” he said during this week’s Caribbean Tourism Conference in Freeport, Bahamas. Like most destinations, the Caribbean’s tourist trade has suffered since Sept. 11, 2001, and tourism officials say crime and harassment of visitors is hurting recovery efforts. One study by a McGill University centre found the rate of crime was the greatest concern for tourists considering Caribbean vacations.
I can sure see this in Nassau or Montego Bay but I thought the Cayman was one of the safest of the Caribbean Islands?
Crime in the Caribbean
CRIME A GROWING CONCERN IN THE CARIBBEAN: Bahamian prime minister Perry Christie has warned those involved in the Caribbean’s tourist trade that crime and filth are harming the Caribbean’s efforts to attract more tourists. “Why would a visitor want to leave a clean, safe, all-inclusive resort to be exposed to filth and rip-offs... a priority must be placed on stamping out criminal behaviour,” he said during this week’s Caribbean Tourism Conference in Freeport, Bahamas. Like most destinations, the Caribbean’s tourist trade has suffered since Sept. 11, 2001, and tourism officials say crime and harassment of visitors is hurting recovery efforts. One study by a McGill University centre found the rate of crime was the greatest concern for tourists considering Caribbean vacations.
I can sure see this in Nassau or Montego Bay but I thought the Cayman was one of the safest of the Caribbean Islands?
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I've been there lots of times and I think it is probably one of the safest of the Caribbean Islands. It would be nice to hear from some of the full time residents about the crime or lack thereof in the Cayman.
Whatever happens,.. happens!
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well, I suppose I qualify as a longterm resident.
The danger in responding to a question about crime is that it is a no-win situation, there is no question that we have more crime here then we have ever had, at the same time crime here compared to any major city in the US or some other caribbean islands is neglible.
i feel completely safe going anywhere on the island at any time of the day or night. There has never been a time that i felt the need to lock my car while I'm in it, however, I now do lock it ever time i park it some where. I have no burglar bars on my windows at home, but again i lock my door when i go out or to sleep.
i hope that will give you some indication of the level of crime here.
The danger in responding to a question about crime is that it is a no-win situation, there is no question that we have more crime here then we have ever had, at the same time crime here compared to any major city in the US or some other caribbean islands is neglible.
i feel completely safe going anywhere on the island at any time of the day or night. There has never been a time that i felt the need to lock my car while I'm in it, however, I now do lock it ever time i park it some where. I have no burglar bars on my windows at home, but again i lock my door when i go out or to sleep.
i hope that will give you some indication of the level of crime here.
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Well said that's exactly what I thought and my impression of the island this buddy of mine who lives there was complaining about the increase in radar (his driving is like low level flying) and he was saying tickets are getting expensive. Have you noticed that.
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In the USA, vacant lots have been a very good investment.
The trick is to find an area that looks ripe for expansion.
Next, find one that doesn't tax you too much.
My father made a good living by doing just that on Long Island.
The trick is to find an area that looks ripe for expansion.
Next, find one that doesn't tax you too much.
My father made a good living by doing just that on Long Island.
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i find this thread quite interesting and i think you have a good idea I.M. Why couldn't we try and identify similar type of properties which match your criteria somewhere in the world (probably the US).
It just seems to me with all the members on this board we shoud be able to identify some pretty good ones if anybody that new of one posted it we could narrow it down to the best ones and maybe do some serious due diligence on it.
What do you think?
It just seems to me with all the members on this board we shoud be able to identify some pretty good ones if anybody that new of one posted it we could narrow it down to the best ones and maybe do some serious due diligence on it.
What do you think?
Whatever happens,.. happens!
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Yes, I too would like to look at alternatives, being originally from a four season type climate i occasionally miss the change of the seasons and the variety in the environment, no mountains and rivers in Cayman! and i think i will miss it even more if and when I'm no longer working full time.
Ideally, I would like to spend the Summers in Europe or similar climate and the Winters in the Caribbean.
I'm always interested in a good opportunity to invest in something that is either lucrative or enjoyable (or heaven forbid, both at the same time)
Got a Chalet in the (lower) Alps? or a nice Condo in Colorado etc?
BTW. the person that mentioned personal safety in Barbados or Bermuda is probably quite correct, there are still a lot of good places around, you just don't hear much about them, it doesn't make headlines!
Ideally, I would like to spend the Summers in Europe or similar climate and the Winters in the Caribbean.
I'm always interested in a good opportunity to invest in something that is either lucrative or enjoyable (or heaven forbid, both at the same time)
Got a Chalet in the (lower) Alps? or a nice Condo in Colorado etc?
BTW. the person that mentioned personal safety in Barbados or Bermuda is probably quite correct, there are still a lot of good places around, you just don't hear much about them, it doesn't make headlines!
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fluf: I too would like to get into alternatives, but what alternatives? We need people to post more alternatives on this forum.
Anyone out there with any alternatives? Huh?
Got a chalet in the Alps? Got a chalet in blackpool?
Hopefully we'll get this thread going.
I'm currently looking at some real estate in the sunny caribbean.
I'd like to hear some success/horror stories from other pilots.
Anyone? Fluf? Mob?
Anyone out there with any alternatives? Huh?
Got a chalet in the Alps? Got a chalet in blackpool?
Hopefully we'll get this thread going.
I'm currently looking at some real estate in the sunny caribbean.
I'd like to hear some success/horror stories from other pilots.
Anyone? Fluf? Mob?
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With the power of this worldwide forum you would certainly expect we could begin to identify and maybe even narrow it down to some excellent investment opportunities for aviation types.
Actually I think it could be fun sorta like playing Monopoly (i always wanted to own Boardwalk) on a global basis.
I agree with FD "Summers in Europe or similiar climes and the Winters in the Caribbean would suite me to a tee from a lifestyle and finacial standpoint.
What i find the most intriguing do we have any opportunity as a result of this incredible global forum aka pprune to pursue this together or should we just go it alone?
Personally I always felt there was strength in numbers like our associations.
Ready for incoming
Actually I think it could be fun sorta like playing Monopoly (i always wanted to own Boardwalk) on a global basis.
I agree with FD "Summers in Europe or similiar climes and the Winters in the Caribbean would suite me to a tee from a lifestyle and finacial standpoint.
What i find the most intriguing do we have any opportunity as a result of this incredible global forum aka pprune to pursue this together or should we just go it alone?
Personally I always felt there was strength in numbers like our associations.
Ready for incoming
Whatever happens,.. happens!
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I agree that we should take advantage of the fact that we are located all over the place and the connection is Pprune.
The way we can use this is like this: lets say 747pilot says; Guys (and Gals) my weary bones cannot take another winter in the frozen north, however, i don't have a spare half million (and up) to plunk down on a condo somewhere in the caribbean and on top of that I will have to worry about maintenance fees, assessments etc. is there anything else I can do?
Then i would reply, Friend, let me tell you about our island, no matter where you live here, you're never more then 5 minutes from the sea, so unless you want to look at the ocean when you wake up, I can help you find a little 2 bedroom fixer upper on a 10-12000 sq ft lot, that you can buy for under a $100K. Or I could tell you that I have been down to the Bay Islands in Honduras and you can a have house built for under $50K.
Many of us have good knowledge about a lot of things, via this website we have the opportunity to exchange that knowledge to our mutual benefit. If you, like me, had to work for what you have today, you'll want to use it wisely.
So, having said all of that, I'm ready to deal with the requests, you can always send a private message.
The way we can use this is like this: lets say 747pilot says; Guys (and Gals) my weary bones cannot take another winter in the frozen north, however, i don't have a spare half million (and up) to plunk down on a condo somewhere in the caribbean and on top of that I will have to worry about maintenance fees, assessments etc. is there anything else I can do?
Then i would reply, Friend, let me tell you about our island, no matter where you live here, you're never more then 5 minutes from the sea, so unless you want to look at the ocean when you wake up, I can help you find a little 2 bedroom fixer upper on a 10-12000 sq ft lot, that you can buy for under a $100K. Or I could tell you that I have been down to the Bay Islands in Honduras and you can a have house built for under $50K.
Many of us have good knowledge about a lot of things, via this website we have the opportunity to exchange that knowledge to our mutual benefit. If you, like me, had to work for what you have today, you'll want to use it wisely.
So, having said all of that, I'm ready to deal with the requests, you can always send a private message.