[Brushfire]

This is sort-of correct. There are taxes on real-estate changes, corporate taxes, and import taxes.

Real estate and import taxes are the two that could be considered 'direct' taxes. Paying 7.5% or 10% of the value of your home at sale time is DEFINITELY a direct tax, its just highly delayed. This tax is based on the idea that most valuable property in the caymans is not owned by locals or is owned by very wealthy people. But everyone pays it...

Corporate taxes are indirect, but if you arent living off your own personal wealth, you are paying for those taxes through the products you buy from those companies or the lower wages you receive from those companies if you work there.

Aside from all of that -- it is foolish to assume that this would work in other countries that are not very small, exotic, and dependent (at least in some part) upon tourism/foreigners. In some sense, you could say that the taxes are paid by foreigners more than locals. Thats all fine and good for Caymans, but again, that would never work in the US, Europe, etc where populations are large compared to the number of visitors/foreigners.

Find me a country with a population of 50 Million that does anything like this, and I'll move there. :)