Options for Cayman Residency A Presentation given to STEP Cayman Presented By: Nick Joseph and Alastair David 24 May 2018
Options for Cayman Residency (For Persons not already Resident) 1. Become employed by an existing employer in the Cayman Islands on a work permit, or enter into government service 2. Establish a business and seek permission for that Business to employ you (and potentially others) pursuant to a work permit 3. Establish a Special Economic Zone entity and obtain a SEZ Certificate permitting employment in that entity 4. Seek Residency for Persons of Independent Means 5. Seek a Certificate of Direct Investment 6. Seek a Residency Certificate (Substantial Business Presence) 7. Seek a Certificate of Permanent Residence for Persons of Independent Means; or 8. Obtain the Right to be Caymanian from the Cabinet
1. Become employed by an existing employer in the Cayman Islands on a work permit, or enter into government service The holder of a work permit or a person employed by the Government will be deemed to be a lawful resident. They can engage in gainful occupation within any limitation placed on their permission. They can have dependants 9 year term limit applies (to work permit holders). RMIT WORK PE APPROV ED
2. Establish a business and seek permission for that Business to employ you (and potentially others pursuant to a work permit Licensing of the business may or may not require application of the 60:40 rule. Once licensed, the entity can serve as a vehicle to employ any person as a work permit holder.
3. Establish a Special Economic Zone entity and obtain a SEZ certificate permitting employment in that entity Provides identical benefits to option 2. Can increase efficiency and lower cost, although not in every case.
4. Residency for Persons of Independent Means Designed and intended for retirees. Requires minimum CI$500,000 investment and income of at least CI$120,000 per annum without needing to work in Cayman. (For residence in Grand Cayman) CI$400,000 on deposit in a Cayman Islands Bank Account now deems an applicant to have the required income. Cost is CI$20,000 (on grant). Lasts for 25 Years (can be renewed). Holder cannot work or advance to citizenship.
5. Certificate of Direct Investment Intended for Business Investors Must invest at least CI$1,000,000 in employment generating business. Must exercise substantial management control (i.e. cannot be a passive shareholder). Cost is CI$20,000 + annual work permit fee. Valid for 25 Years.
6. Residency Certificate (Substantial Business Presence) Effectively a 25 year work permit for senior management and/or shareholders. Must be an approved category of business. This includes fund administration, family office, or any exempt company. Cost is CI$5,000 + annual work permit fee. Certificate of Residency
7. Certificate of Permanent Residence for Persons of Independent means The Big Kahuna of options Provides all benefits of Permanent Residence including path to citizenship. Requires investment of at least CI$2 million in developed real estate. Grant Fee is CI$100,000. The right to work can be added on successful application (work permit fees are payable)
8. Obtain the Right to be Caymanian from the Cabinet It is nice to dream. Contribution would have to be truly exceptional.
What if I want to have a vacation home and/or investment property only? Not a problem for up to 180 days a year, provided you are able to maintain yourself. Foreign Nationals can own and rent (long term) up to two units of property without needing a trade and Business License or a work permit. There appears to be no limit on the number of short-term tourist accommodations a Foreign National can own.
The Economics of Cayman
Permanent Residence Immigration Law (2015 Revision) Immigration (Amendment Regulations) 2017
How do you get Permanent Residence? Many types of Permanent Residence. Most common way of obtaining PR is pursuant to Section 30 Immigration Law (2015 Revision). Need to score 110 points in various factors as set out in Immigration Regulations (2015 Revision) and the amended regulations which were issued on 8 March 2017.
Factor 1 Factor 2 Factors Occupation Employment Training and Experience Factor 3 Current Occupation. Priority Occupation. Years Experience. Education. Local Investments Investment in property. Investment in Locally Licensed company. Maximum Points 30 15 points 15 points Maximum Points 25 10 points 15 Points Maximum Points 30
Factors Factor 4 Financial Stability Max Points 30 Local Savings. Evidence of Salary and Income. Factor 5 Integration in Cayman Max Points 20 Factor 6 History Culture Test Max Points 20 Factor 7 Caymanian Connections Max points 100 Factor 8 Demographic Diversity Max points 10 Factor 9 Age Distribution Max points 10 Maximum possible points 265
Deductions Character and health Max deduction 100 points a. b. c. d. Criminal convictions Health issues. Administrative fines levied in relation to a statutory offence. Lack of a reasonably funded pension plan. Other mitigating factors Unlimited points deduction Proven mistreatment of Caymanians.