Spain agrees not to call Cayman a “tax haven”

(CNS): The Spanish authorities will no longer consider the Cayman Islands as a tax haven once it signs a deal with the local government, officials said on Monday. Cayman has concluded negotiations for a tax information exchange agreement (TIEA) with Spain, following accord on several areas of common interest, the ministry of finance has revealed. It said a key outcome of the agreement that will take effect upon its entry into force will see Spain no longer classifying the Cayman Islands as a ‘tax haven’ under its domestic legislation.

“The conclusion of negotiations with Spain and the anticipated reclassification of the Cayman Islands under Spanish tax law represent significant progress in the Cayman Islands international tax transparency programme,” said Cayman Islands Premier and Minister of Finance, McKeeva Bush.
“Spain is also an EU member state and a G-20 country and therefore, Cayman’s agreement fulfils the objectives of our negotiation strategy, which is focused on concluding TIEAs with nations in these two groups.”
The agreement will now proceed through the necessary authorisationprocesses on both sides to allow it to be signed and enter into force, officials explained. The date and location for the signing will be confirmed in the coming months.
The Cayman Islands currently has signed 20 bilateral arrangements for the provision of tax information. In addition to Spain, the Cayman Islands currently has 7 agreements awaiting signature – Italy, Japan, India, Greece, Indonesia, South Africa, South Korea – and is in negotiations with many other countries of political and economic significance.