Side-by-side on the points that decide where you incorporate: corporate tax, FATF standing, sanctions exposure, data-protection law, arbitration enforceability, apostille, foreign ownership and local-director requirements.
Jurisdiction table checked: 2026-10-02
| Cayman Islands [KY] | BVI [VG] | |
|---|---|---|
| Region | Offshore | Offshore |
| Corporate tax rate | 0% | 0% |
| FATF status | compliant | grey list |
| Sanctions exposure | No | No |
| EU list of non-cooperative jurisdictions | not listed | Annex II — commitments given |
| Data-protection law | DPL 2017 (rev. 2021) | Data Protection Act 2021 |
| New York Convention | Yes | Yes |
| Apostille Convention (1961) | Yes | Yes |
| Foreign ownership | Yes | Yes |
| Local director requirement | No | No |
Cayman Islands is FATF-compliant and not on the grey list, which generally means smoother bank onboarding.
BVI is on the FATF grey list (increased monitoring). Expect slower bank onboarding and more KYC questions for the company and its counterparties — not a prohibition on doing business.
Cayman Islands appears in neither annex of the EU list as at the current revision.
BVI is in Annex II: not listed, but it has given commitments the EU is tracking. Annex II is where substance and transparency undertakings are recorded — a state of play, not a sanction.
The applicable data-protection statute is DPL 2017 (rev. 2021) (in force since 2017). If you process EU/UK personal data you also need a valid transfer mechanism into Cayman Islands.
The applicable data-protection statute is Data Protection Act 2021 (in force since 2021). If you process EU/UK personal data you also need a valid transfer mechanism into BVI.
Neither is obviously right until you know what you are optimising for — tax, banking, enforcement or speed.
Informational resource curated by the Ignito legal practice and cross-checked against primary sources. This is not legal advice and does not create a lawyer-client relationship. Rules change — verify against the primary source before you sign or file. Terms of Use