With no direct taxation, the islands are a thriving offshore financial centre.

More than 68,000 companies were registered in the Cayman Islands as of 2003, including almost 500 banks, 800 insurers, and 5,000 mutual funds.

Caymanians enjoy one of the highest standards of living in the world.

Anguilla

Caribbean, islands between the Caribbean Sea and North Atlantic Ocean, Anguilla is situated to the east of Puerto Rico.

Anguilla has few natural resources, and the economy depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants.

The Bahamas

A chain of islands in the North Atlantic Ocean, the Bahamas is located to the southeast of Florida and northeast of Cuba.

The Bahamas is one of the wealthiest Caribbean countries with an economy heavily dependent on tourism and offshore banking.

The Bahamas levies neither personal income nor capital gains tax, nor are there inheritance taxes.

Since December 2000, when the government started reforming the financial sector, many international businesses left the island.

Image: Miss Universe contestant Rebecca Parchment of the Cayman Islands takes part in the preliminary show swimwear contest. | Photograph: Adrees Latif/Reuters

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