The Cayman Islands () is a self-governing British Overseas Territory in the western Caribbean. With a population of over 90,000, it is the most populated of all the British Overseas Territories. The 264-square-kilometre (102-square-mile) territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located south of Cuba and north-east of Honduras, between Jamaica and Mexico's Yucatán Peninsula. The capital city is George Town on Grand Cayman, which is the most populous of the three islands.
The Cayman Islands is considered to be part of the geographic Western Caribbean zone as well as the Greater Antilles. The territory is a major tax haven mainly due to the state charging no tax on income earned or stored.
With a GDP per capita of $97,750 in 2023, the Cayman Islands has the highest standard of living in the Caribbean, and one of the highest in the world. Despite its population of almost 90,000, immigrants from over 140 countries and territories reside in the Cayman Islands.
As of 2017, no evidence has been found that the islands had been occupied before the arrival of the Europeans. The Cayman Islands got their name from the word for crocodile (caiman) in the language of the Arawak-Taíno people. It is believed that the first European to sight the islands was Christopher Columbus, on 10 May 1503, during his final voyage to the Americas. He named them "Las Tortugas", after the large number of turtles found there (which were soon hunted to near-extinction). However, in succeeding decades, the islands began to be referred to as "Caimanas" or "Caymanes".
No immediate colonisation followed Columbus's sighting, but a variety of settlers from various backgrounds eventually arrived, including pirates, shipwrecked sailors, and deserters from Oliver Cromwell's army in Jamaica. Sir Francis Drake briefly visited the islands in 1586.
The first recorded permanent inhabitant, Isaac Bodden, was born on Grand Cayman around 1661. He was the grandson of an original settler named Bodden, probably one of Oliver Cromwell's soldiers involved in the capture of Jamaica from Spain in 1655.
England took formal control of the Cayman Islands, along with Jamaica, as a result of the Treaty of Madrid of 1670. That same year saw an attack on a turtle fishing settlement on Little Cayman by the Spanish under Portuguese privateer Manuel Ribeiro Pardal. Following several unsuccessful attempts at settlement in what had by then become a haven for pirates, a permanent English-speaking population in the islands dates from the 1730s. With settlement, after the first royal land grant by the governor of Jamaica in 1734, came the introduction of slaves. Many were purchased and brought to the islands from Africa. That has resulted in the majority of native Caymanians being of African or British descent.
On 8 February 1794, the Caymanians rescued the crews of a group of ten merchant ships, including HMS Convert, an incident that has since become known as the Wreck of the Ten Sail. The ships had struck a reef and run aground during rough seas. Legend has it that King George III rewarded the islanders for their generosity with a promise never to introduce taxes, because one of the ships carried a member of the King's family. Despite the legend, the story is not true.
The first census taken in the islands, in 1802, showed the population on Grand Cayman to be 933, with 545 of those inhabitants being slaves. Slavery was abolished in the Cayman Islands in 1833, following the passing of the Slavery Abolition Act by the British Parliament. At the time of abolition, there were over 950 slaves of African ancestry, owned by 116 families.
On 22 June 1863, the Cayman Islands was officially declared and administered as a dependency of the Crown Colony of Jamaica. The islands continued to be governed as part of the Colony of Jamaica until 1962, when they became a separate Crown colony, after Jamaica became an independent Commonwealth realm.
In the 1950s, tourism began to flourish, following the opening of Owen Roberts International Airport (ORIA), along with a bank and several hotels, as well as the introduction of a number of scheduled flights and cruise stop-overs. Politically, the Cayman Islands were an internally self-governing territory of Jamaica from 1958 to 1962, but they reverted to direct British rule following the independence of Jamaica in 1962. In 1972, a large degree of internal autonomy was granted by a new constitution, with further revisions being made in 1994. The Cayman Islands government focused on boosting the territory's economy via tourism and the attraction of off-shore finance, both of which mushroomed from the 1970s onwards. Historically, the Cayman Islands has been a tax-exempt destination, and the government has always relied on indirect and not direct taxes. The territory has never levied income tax, capital gains tax, or any wealth tax, making it a popular tax haven.
The constitution was further modified in 2001 and 2009, codifying various aspects of human rights legislation.
On 11 September 2004, the island of Grand Cayman, which lies largely unprotected at sea level, was battered by Hurricane Ivan, the worst hurricane to hit the islands in 86 years. It created an 8-foot (2.4 m) storm surge which flooded many areas of Grand Cayman. An estimated 83% of the dwellings on the island were damaged, with 4% requiring complete reconstruction. A reported 70% of all dwellings suffered severe damage from flooding or wind. Another 26% sustained minor damage from partial roof removal, low levels of flooding, or impact with floating or wind-driven hurricane debris. Power, water, and communications were disrupted for months in some areas. Within two years, a major rebuilding programme on Grand Cayman meant that its infrastructure was almost back to its pre-hurricane condition. Due to the tropical location of the islands, more hurricanes or tropical systems have affected the Cayman Islands than any other region in the Atlantic basin. On average, it has been brushed or directly hit every 2.23 years.
The islands are in the western Caribbean Sea and are the peaks of an undersea mountain range called the Cayman Ridge (or Cayman Rise). This ridge flanks the Cayman Trough, 6,000 m (20,000 ft) deep which lies 6 km (3.7 mi) to the south. The islands lie in the northwest of the Caribbean Sea, east of Quintana Roo, Mexico and Yucatán State, Mexico, northeast of Costa Rica, north of Panama, south of Cuba and west of Jamaica. They are situated about 700 km (430 mi) south of Miami, 750 km (470 mi) east of Mexico, 366 km (227 mi) south of Cuba, and about 500 km (310 mi) northwest of Jamaica. Grand Cayman is by far the largest, with an area of 197 km2 (76 sq mi). Grand Cayman's two "sister islands", Cayman Brac and Little Cayman, are about 120 km (75 mi) east north-east of Grand Cayman and have areas of 38 and 28.5 km2 (14.7 and 11.0 sq mi) respectively. The nearest land mass from Grand Cayman is the Canarreos Archipelago (about 240 km or 150 miles away), whereas the nearest from the easternmost island Cayman Brac is the Jardines de la Reina archipelago (about 160 km or 100 miles away) – both of which are part of Cuba.
All three islands were formed by large coral heads covering submerged ice-age peaks of western extensions of the Cuban Sierra Maestra range and are mostly flat. One notable exception to this is The Bluff on Cayman Brac's eastern part, which rises to 43 m (141 ft) above sea level, the highest point on the islands.
The terrain is mostly a low-lying limestone base surrounded by coral reefs. The portions of prehistoric coral reef that line the coastline and protrude from the water are referred to as ironshore.
In Cayman Islands forest cover is around 53% of the total land area, equivalent to 12,720 hectares (ha) of forest in 2020, down from 13,130 hectares (ha) in 1990. In 2020, naturally regenerating forest covered 12,720 hectares (ha) and planted forest covered 0 hectares (ha). Of the naturally regenerating forest 0% was reported to be primary forest (consisting of native tree species with no clearly visible indications of human activity). For the year 2015, 0% of the forest area was reported to be under public ownership, 12% private ownership and 88% with ownership listed as other or unknown.