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Do Foreign Investors Really Need a Cayman Feeder Structure for Long-Term Gains and Privacy?

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Community Member
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May 03, 2023
For foreign investors does one really need a cayman feeder structure ? The investor can do it themselves if they are really bothered right ? Since most returns will be long term gains there will usually be no witholding even if there is a K1 and other tax forms sent out. Is this correct understanding. Do foreign investors want it more for privacy ?
1 answer
Community Member
Accepted Answer
May 03, 2023
If most of your investors and investments are in the US, then don’t bother looking at a Cayman subsidiary or shell. The advantages of these tax havens have been degraded as a result of expanding KYC and taxation regimes.

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