Cayman Islands: Immigration Comparative Guide

1 Legal framework

1.1 Which legislative and regulatory provisions govern corporate immigration in your jurisdiction?

The primary immigration legislation in force in the Cayman Islands is the Immigration (Transition) Act (2021 Revision), together with the Immigration Regulations (as revised).

1.2 Do any special regimes apply in specific sectors?

There are various exemptions for certain industries and sectors, including extended work permits for approved categories of business, including fund administration and investment management services.

In addition, and until recently, the Global Citizen Certificate (GCC) programme, introduced in October 2020 as a result of the COVID-19 pandemic, was implemented to attract ‘digital nomads' and other professionals from around the world who have the ability to work remotely. The main requirements are proof of sufficient income (minimum of $100,000 if an individual; $150,000 if applying with a spouse) and health insurance, along with various standard documents such as a police clearance and bank references. Once granted, a GCC holder has the right to enter and work from the Cayman Islands for up to two years, with the only restriction being that the individual must be physically present in the Cayman Islands for a total of 90 days in each of the two years. The programme expired on 31 October 2021; however, it may be extended given how successful it has been.

Another significant initiative is the Special Economic Zone (SEZ), which was implemented in September 2011 and is operated by Cayman Enterprise City. The goal of the SEZ is to stimulate and attract economic growth and international investment in the following sectors in the Cayman Islands:

• science;
• technology;
• commodities and derivatives;
• maritime;
• media; and
• education.

Enterprises that qualify and choose to operate within the SEZ are afforded various benefits, including:

• a streamlined incorporation process;
• guaranteed protection of intellectual property; and
• exemptions from:
• • direct or indirect taxes;
  • certain import duties; and
  • importantly, work permit requirements.

The exemptions from work permit requirements include the need to test the local labour market and otherwise comply with the traditional work permit application process. The employees of SEZ companies are granted five-year work permits and the process has been streamlined such that the entire process usually takes four to seven weeks.

1.3 Which government entities regulate immigration in your jurisdiction? What powers do they have?

Section 3 of the Immigration Act states that the government department Workforce, Opportunities and Residence Cayman Office (WORC) carries out the following functions:

• providing labour market demand assessments;
• training and developing Caymanians for the workforce;
• providing job match and placement services for Caymanians;
• processing applications for work permits and applications and grants for Caymanian status, permanent residence and other types of residence; and
• any other functions as imposed by the act.

According to Section 4 of the act, WORC has the power to do anything which is legally required to discharge its functions and duties under the act.

1.4 What is the government's general approach to immigration in your jurisdiction?

The Cayman Islands government is open to all forms of legal immigration. As evidenced by the Global Citizen Certificate programme described in question 1.2, the government is willing to implement policies to attract hardworking and successful individuals. The government not only implements straightforward immigration policies to ease the expatriate permit application process, but also processes such applications relatively quickly. The government will approve temporary work permits within 20 to 14 days and permanent work permits within six to eight weeks.

2 Business travel

2.1 Do business visitors need a visa to visit your jurisdiction? What restrictions and exemptions apply in this regard?

The Immigration Regulations provide for a wide range of categories of employment for which a person can temporarily enter into the Cayman Islands without a work permit. Half of these cover traditional business visits such as meetings, training, conferences, speaking events, repair and maintenance works and insurance valuations (among many others). However, these activities come with the caveat that the business visitor cannot stay for more than 10 days. The other half apply exclusively to artistic endeavours such as filming, playwriting and recording, and include all of the support roles that are customary in those lines of work. For people coming to engage in and or assist with artistic endeavours, the Immigration Regulations provide that the employment period can be for up to six months in a 12-month period. Both traditional business visitors and those pursuing artistic endeavours cannot engage in any other activity that would require a work permit (ie, an activity not in the two lists of exemptions).

A business in the Cayman Islands which regularly employs individuals who are not resident in the islands may make a single application per year for one or more business visitors permits.

2.2 Do the requirements vary depending on sector or purpose?

Yes, see question 2.1.

2.3 What is the maximum stay allowed for business visitors?

The maximum stay is either 10 days or up to a total of six months in a 12-month period (depending on the kind of work being undertaken).

2.4 What activities are business visitors allowed to conduct while visiting your jurisdiction?

In total, approximately 50 activities are specified in the Immigration Regulations. However, these lists are not exhaustive and an immigration officer has discretion as to what other activities may be included as being exempt from requiring a work permit.

2.5 Is authorisation required for business visitors to provide or receive short-term training?

The Immigration Regulations outline that a person may come to the Cayman Islands without obtaining a work permit (for a period of not more than 10 days) to receive training, provided that:

• the training is confined to observation and classroom instruction only; and
• the person is employed by company or organisation carrying on business outside the Cayman Islands.

Providing training is not included in the list of exemptions; however, a specific exemption may be sought.

3 Work permits

3.1 What are the main types of work permit in your jurisdiction? What restrictions and exemptions apply in this regard?

The main types of work permits that exist in the Cayman Islands are:

• temporary;
• temporary: seasonal worker;
• temporary: entertainer; and
• annual.

As outlined in question 2, an exemption from the work permit requirements may apply to those who fall into the business visitor category or who qualify as exempted persons. For example, as a result of COVID-19, the government passed the Immigration (Transition) (Work Permit Exemptions) Regulations, 2020 which made certain medical personnel (recruited from overseas) exempt from the work permit requirements for the entirety of their contracts.

3.2 What is the maximum stay allowed under each type of work permit? Can this be extended?

The maximum stay allowed under a temporary work permit is a continuous period of six months; while the maximum stay allowed under a temporary seasonal worker permit is a continuous period of eight months.

The maximum stay that is allowed under a permanent work permit (without having applied for any other kind of status) is nine years from either:

• the date on which the worker entered the Cayman Islands, if he or she entered as a work permit holder; or
• the date on which the worker is granted a work permit, if he or she entered as a tourist visitor.

The nine-year term applies whether the intervening work permits that make up a worker's nine-year stay (eg, nine one year permits) are granted and whether it is held continuously or not. To reset this nine-year timeline, an individual must leave the islands for not less than one year.

3.3 What criteria must be satisfied to obtain each kind of permit?

The following information is required as part of a work permit application:

• evidence of good character of the applicant and any dependants;
• proof of identity for the applicant and dependants;
• a medical examination or a medical certificate for the applicant and any dependants;
• any additional particulars that the Work Permit Board may require as part of the application and, in particular, details surrounding the qualifications and availability of suitable accommodation for the applicant and any dependants.

3.4 Do any language requirements apply for each kind of permit?

There are no express language requirements. However, Section 59(3)(e) of the Immigration Act states that in considering a work permit application, the Work Permit Board may take into consideration the "worker's facility in the use of the English language". While this concept is not expanded upon further in the Immigration Act or the Immigration Regulations, in practice, the board generally:

• considers an applicant's English proficiency in relation to the kind of work that he or she will be undertaking; and
• assesses his or her ability to perform such work in light of his or her English-speaking proficiency.

3.5 Are any work permits subject to quotas?

The government has the power to introduce quotas, but only in respect of restricted areas of employment which may be designated by the government.

3.6 Do any specific rules apply with regard to the following:
(a) Work in specific sectors?
(b) Shortage occupations?
(c) Highly skilled workers?
(d) Investors and high-net worth individuals?

(a) Work in specific sectors?

There are exemptions from the work permit requirements as outlined in question 2.1.

(b) Shortage occupations?

None.

(c) Highly skilled workers?

Term limits are not applicable to highly skilled workers whose primary place of residence is outside the Cayman Islands as set out in Section 66(15) of the Immigration Act. Practically, this applies to individuals who are brought into the Cayman Islands to perform a certain task and who return to their place of residence once this has been completed. This process can be repeated on a task-by-task basis with no term limit.

(d) Investors and high-net-worth individuals?

Not in respect of work permits. However, there are rules (as outlined in question 4) which apply to these kinds of people seeking permanent residence.

3.7 What are the formal and documentary requirements for obtaining each kind of permit?

See question 3.3.

3.8 What fees are payable to obtain each kind of permit?

All temporary permit applications cost $70, plus $250 per dependant. The grant fees payable upon obtaining a temporary work permit are 66% of the fee that would be payable if the permit were an annual work permit.

A permanent work permit application costs $100, plus $250 per dependant (if the annual permit fee is over $2,100 the dependant application fee rises to $500). Grant fees for an approved permanent work permit vary greatly depending on the kind of work and range from $0 to more than $30,000.

3.9 What is the process for obtaining a permit? How long does this typically take?

The process consists of submitting an application to the Work Permit Board in the prescribed form with respect to the type of permit and work that an applicant is seeking. Temporary permits are typically processed within two weeks of submission, while permanent work permits can take anywhere from one to six months.

3.10 Once a work permit has been obtained, what are the rights and obligations of the permit holder? What are the penalties in case of breach?

The penalties for working without a work permit or working in a position for which you do not have a work permit are, in the first instance, a fine of $5,000 and up to one year's imprisonment.

4 Settlement

4.1 What are the criteria for obtaining settlement in your jurisdiction? What restrictions apply in this regard?

There are a number of paths to obtaining settlement in the Cayman Islands under Section 37 of the Immigration Act:

• Persons who have been legally and ordinarily resident in the Cayman Islands for eight years may apply to the Workforce, Opportunities and Residence Cayman Office (WORC) for that person, his or her spouse or civil partner and any dependants to live permanently in the islands.
• Residency certificate for persons of independent means: This certificate can be granted to a person who has satisfied the chief immigration officer that he or she has:
• • a continuous source of annual income of no less than $120,000;
  • an account with a Cayman Islands Monetary Authority regulated local institution and a minimum deposit of $400,000; or
  • invested $1 million, of which at least half must be in developed real estate in Grand Cayman.
• Residency certificate for retirees: No details on this are provided in the Immigration Act.
• Certificate of direct investment: This is available to persons who have satisfied the chief immigration officer that they propose to invest or have invested a sum of at least $1 million in an employment generating business in the Cayman Islands.
• Dependants of a residency certificate.
• Certificate of permanent residence for persons of independent means: This can be granted to a person who has invested at least $2 million in developed real estate in the Cayman Islands.
• Certificate for Specialist Caregivers: This can be granted to a person, upon the application of his or her employer or former employer, who (among other things):
• • holds a final work permit (meaning that he or she can no longer apply for a renewal);
  • was employed by the applicant for at least three years immediately before the expiry of his or her final work permit; and
  • was employed as a domestic helper, nurse, nanny or in some other caregiving capacity.
• Residency certificate (substantial business presence): This can be granted to a person who proposes to be legally and ordinarily resident in the Cayman Islands for a minimum period of 90 days in each calendar year and who:
• • owns or proposes to own at least 10% of the shares in an approved category of business; or
  • proves to the director of WORC that he or she is or will be employed in a senior management capacity of an approved business.

4.2 Do any specific rules apply to foreign citizens with ancestral connections?

Foreign citizens who at the time of their birth outside the Cayman Islands had a parent who (at that same time) was resident in the Cayman Islands have a right to Caymanian status.

Foreign citizens who were born outside the Cayman Islands and at the time of their birth (on or after 1 January 2004) had a parent who was Caymanian otherwise than by decent have a right to be Caymanian.

Foreign citizens who have an ancestral connection (eg, a grandmother or grandfather who is/was a Caymanian) can apply directly for Caymanian status when they attain the age of 18 and are not otherwise entitled to be Caymanian (eg, a father/mother who is Caymanian, or by way of birth/residency).

4.3 What are the formal and documentary requirements for obtaining settlement?

Submission of the completed application form together with the required documentation (eg, evidence of financial standing, background checks, reference letters from Caymanians).

4.4 What fees are payable to obtain settlement?

• Persons who have been legally and ordinarily resident in the Cayman Islands for eight years (‘eight-year residents') may apply to WORC for themselves, their spouse or civil partner and any dependants they may have to live permanently in the islands:
• • A $300 application fee;
  • grant fee of between $500 and $12,500, depending on the amount that the applicant earns;
• For spouses and dependants of an eight-year resident:
• • a $300 application fee; and
  • a grant fee of between $500 and $12,500, depending on the amount that the holder of the residency certificate earns.
• Residency certificate for persons of independent means:
• • a $500 application fee; and
  • a $20,000 grant fee (plus $1,000 for every dependant).
• Residency certificate for retirees: Not specified in the Immigration Regulations.
• Certificate of direct investment:
• • a $1,000 application fee; and
  • a $20,000 grant fee (plus $1,000 for every dependant).
• Dependant of a residency holders' certificate:
• • a $300 application fee; and
  • a grant fee of between $500 and $12,500, depending on the amount that the holder of the residency certificate earns.
• Certificate of permanent residence for persons of independent means:
• • a $500 application fee; and
  • a $100,000 grant fee (plus $1,000 for every dependant).
• Certificate for specialist caregivers:
• • a $100 application fee; and
  • a grant fee of between $250 and $1,150, depending on the kind of work that the caregiver undertakes.
• Residency certificate (substantial business presence):
• • a $1,000 application fee; and
  • a $5,000 grant fee (plus $1,000 for every dependant).

4.5 What is the process for obtaining settlement? How long does this typically take?

The settlement process is the same for all applicants seeking permanent residence and/or extended residence under Part 6 of the Immigration Act. The process is the completion of the prescribed application which corresponds to the path to settlement that a given individual is taking (eg, for eight-year residents – proving legal and ordinary residence in the Cayman Islands (among other things); for certificate of direct investment – proof of the direct investment at or above the required spending threshold).

These applications take approximately two to six months to be processed.

4.6 Is the settlement process the same for EU citizens?

Yes.

5 Dependants

5.1 What are the criteria to qualify as a dependant? What restrictions apply in this regard?

The definition of ‘dependant' in Section 2 of the Immigration Act is: "in relation to a person means the spouse or civil partner of that person, or one of the following relations of that person, namely a child, step-child, adopted child, grandchild, parent, step-parent, grandparent, brother, sister, half-brother, half-sister, in each case, wholly or substantially dependent upon that person."

5.2 What rights do dependants enjoy once admitted as such?

Dependants are afforded the ability to apply to obtain the same status as the persons on whom they depend.

5.3 How are civil/unmarried partners and same-sex partners treated in this regard?

Civil partners are considered to be ‘dependants' under the definition referenced above and same-sex partners are considered ‘civil partners' pursuant to the Civil Partnership Act 2020.

6 Intra-company transfers

6.1 Is there a specific regime for the transfer of employees from an overseas branch of a multinational to your jurisdiction?

None.

6.2 What is the maximum stay allowed under this regime? Can this be extended?

Not applicable.

6.3 What criteria must the employer satisfy to obtain a permit under this regime?

Not applicable.

6.4 What are the formal and documentary requirements to obtain a permit under this regime?

Not applicable.

6.5 What fees are payable to obtain a permit under this regime?

Not applicable.

6.6 What is the process for obtaining a permit? How long does this typically take?

Not applicable.

7 New hires

7.1 Are employers in your jurisdiction bound by labour market testing requirements before hiring from overseas? Do any exemptions apply in this regard?

There are market testing requirements. No published exemptions apply; however, it is possible to receive an exemption from the board or the director of the Workforce, Opportunities and Residence Cayman Office (WORC).

7.2 If labour market testing requirements apply, how are these satisfied and what best practices should employers follow in this regard?

Should an employer not obtain the exemption referred to in question 7.1, the labour market testing requirements set out in Section 58(2) of the Immigration Act stipulate that a prospective employer (of a work permit applicant) must demonstrate:

• a genuine need to engage the services of the work permit applicant;
• registration of the vacancy on the WORC job portal two weeks prior to the submission of the work permit application (in order to assess the availability of a Caymanian or permanent resident to fill the position); and
• in the case of a work permit in respect of a professional, managerial or skilled position, its establishment of adequate training/scholarship programmes for Caymanians.

In addition to registering the vacancy on the WORC portal, an employer may advertise the position in a local newspaper or other prescribed media.

7.3 Which work permits are primarily used for new hires? What is the process for obtaining them and what fees are applicable, for both employer and employee?

Any of the work types for work permits outlined in question 3.1 can be used for new hires. The process for obtaining each is to complete the application form in respect of the desired kind of work permit and submit it to the board and/or WORC together with all the requisite supplemental documentation (see question 3.3). The applicable fees are outlined in question 3.8; the only extra fees that an employer may incur will be those for advertising the position in a local newspaper as outlined in question 7.2. There are no fees for posting on the WORC job portal.

7.4 Is labour market testing required if the new hire is to extend his or her residence?

Yes, if that person is applying for another work permit. If that person was to apply for one of the permanent residence options, labour market testing would not apply.

7.5 Can new hires apply for permanent residence?

The only way that a new hire (and a new person to the Cayman Islands) can immediately apply for permanent residence is to:

• apply for a residency certificate (substantial business presence), which requires at least 10% ownership in an approved category of business or the applicant's employment in a senior management capacity of an approved category of business; and
• apply for a certificate of direct investment following a $1 million investment in an employment generating business.

8 Sponsorship

8.1 Are any licences or authorisations required to sponsor foreign nationals? What other criteria apply in this regard?

None.

8.2 What obligations do sponsoring employers have to ensure continued immigration compliance?

None.

8.3 Are sponsoring employers subject to any local training requirements?

None.

8.4 How is compliance with the sponsorship regime monitored? What are the penalties for non-compliance?

None.

9 Trends and predictions

9.1 How would you describe the current immigration landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The current immigration landscape is very positive and is likely to continue to be so as a result of:

• the continued growth of the financial services industry which underpins the Cayman Islands economy; and
• the increasing popularity of the Cayman Islands as a jurisdiction generally.

10 Tips and traps

10.1 What are your top tips for businesses seeking to recruit talent from abroad and what potential sticking points would you highlight?

• Seek immigration advice and follow all job posting procedures correctly.
• Ensure that the requisite forms are completed correctly and that all supporting documentation is correct before they are submitted, as any errors can cause significant delays.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.