Cayman Islands: Labour Regulation

In January 2010, Cayman Prime Minister McKeeva Bush announced that an amendment to the immigration law had been drafted to encourage foreign financial services companies to remain in the jurisdiction.

Bush said that the government was fast tracking legislation to ease immigration laws imposed on those employed in the financial services sector. Under the proposed legislation, foreigners will be allowed to the island for extended periods, and the amount of time that they are required to reside outside of the territory after the expiry of their permit will be reduced.

In a statement welcoming the decision, Cayman Finance said that it "fully endorses the positive steps the government is taking to strengthen the Cayman economy and its financial services industry in these more challenging economic times."

On April 28, the Cayman Islands parliament passed the Immigration (Amendment) Bill 2010. This permits 25-year residence to wealthy individuals who invest in businesses that contribute to the prosperity of the islands, on certain conditions.

The new legislation introduces the opportunity for foreign individuals to apply for a Residential Certificate for Investment. While this will cost KYD20,000 (USD24,000), it allows the investor, their spouse and any dependents the right to live in the islands without the need for a work permit on certain conditions. Under the new law, investors must:

Bush underscored that the Residential Certificate for Investment would not incorporate a Trade and Business License and, if necessary for operations, this would need to be applied for separately.

The island’s Immigration Law previously contained provisions to allow residence to wealthy investors but were retracted as the islands received little interest.

Speaking to parliament, Bush said: “This government remains firmly of the view that important economic benefits can be derived from private individuals investing significant amounts in local businesses such as new developments, new industries, hotels for the tourism industry, and so on. The boost that such direct financial investment would give to our economy cannot be overlooked and incentives must be provided for them also as part of the overall package currently being promoted to encourage investment.”

The Immigration (Amendment) Law 2012 came into effect on June 5, 2012. This new law introduces major changes to the immigration rules on the island by creating a new category of permissions for investors who wish to live in the Cayman Islands as well as introducing new rules for business visitors.

The new Certificate of Permanent Residence for Persons of Independent Means now allows the holder to work in the Cayman Islands and eventually apply for Caymanian citizenship, without having to gain the previously required eight years of ordinary residence. To qualify for the certificate, applicants need to invest a minimum specified sum in developed real estate and be financially able to maintain himself and any dependents. The amounts required will be published in new regulations.

A substantial business presence residency certificate is the second major change in the Immigration (Amendment) Law 2012. Applicants must either have a minimum 10% participation in an approved business with a substantial presence in the Caymans, or must be employed as a senior manager in a business with a substantial presence in the Caymans.

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