Offshore Fund Jurisdictions Compared: Cayman vs BVI vs Bermuda vs Mauritius

Offshore fund jurisdictions provide tax-neutral structures for international investors, with each jurisdiction offering distinct advantages in regulation, cost, banking, and institutional acceptance. The Cayman Islands is the dominant offshore jurisdiction by fund count and AUM, but BVI, Bermuda, Mauritius, and Seychelles each serve specific market segments. This guide compares the four most significant offshore fund jurisdictions across 12 evaluation criteria to help fund managers select the right domicile.

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Offshore Jurisdiction Comparison

Factor	Cayman Islands	BVI	Bermuda	Mauritius
Regulator	CIMA	FSC	BMA	FSC
Fund Count	13,000+ regulated	3,000+	1,200+	900+
Primary Strength	Global standard	Cost-efficient	Insurance/ILS	India/Africa gateway
Setup Time	2-6 weeks	2-3 weeks	4-8 weeks	4-8 weeks
Annual Regulatory Cost	~$4,268	~$1,500-2,500	~$2,000-4,000	~$1,500-3,000
Banking Access	Strong	Limited	Moderate	Moderate
Institutional Acceptance	Highest	High	High (niche)	Moderate
Tax Treaty Network	Limited	Limited	Limited	Extensive (India, Africa)
Economic Substance	Required	Required	Required	Required
Best For	All strategies, institutional	Emerging managers, cost-sensitive	ILS, reinsurance, fintech	India-focused, Africa-focused

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Frequently Asked Questions

Why is the Cayman Islands the most popular offshore fund jurisdiction?

The Cayman Islands dominates due to a combination of factors: the deepest institutional acceptance globally, a mature and well-understood regulatory framework, strong banking infrastructure, a large pool of experienced service providers, and two decades of market standardization. Most institutional investors' due diligence processes are built around Cayman structures.

Is Mauritius still relevant after the India treaty changes?

Yes, though its role has evolved. The 2016 India-Mauritius tax treaty amendments reduced the capital gains tax benefits for equity investments. However, Mauritius remains relevant for debt investments into India (which retain favorable treaty treatment), as an Africa-focused fund hub, and for its GBC (Global Business Company) structure which provides access to Mauritius's extensive treaty network.

When should I choose Bermuda over Cayman?

Bermuda is particularly strong for insurance-linked securities (ILS), reinsurance sidecars, catastrophe bonds, and fintech-related fund structures. If your strategy involves insurance or reinsurance risk, Bermuda's deep expertise and the BMA's specialized regulatory framework make it the natural choice. For general alternative investment funds, Cayman is typically preferred.

Do all offshore jurisdictions have economic substance requirements?

Yes. The Cayman Islands, BVI, Bermuda, and Mauritius have all enacted economic substance legislation in response to EU and OECD requirements. Relevant entities must demonstrate adequate substance (decision-making, employees, expenditure) in the jurisdiction. The specific requirements vary by entity type and activity.

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Next Steps

Talk to Unefund

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Sources: Regulatory authority publications, Preqin, AIMA, ILPA, and industry data.