The Cayman Islands provide a permanent residency scheme with the possibility of eventual naturalisation and citizenship.
The Cayman Islands have no corporate, income, capital gains, inheritance, or sales taxes, making the program appealing to investors looking for a tax-efficient home.
Applicants must invest a minimum of $2.4 million in qualified real estate to qualify.
How to Obtain Residency in the Cayman Islands
If moving to the Cayman Islands sounds appealing to you, I have good news: obtaining Cayman Islands residence is rather simple.
However, while becoming a Cayman Islands resident is not difficult, it is costly. If you want to relocate there, you should be prepared to invest more than $1 million – even for a temporary permission.
While obtaining residency in the Cayman Islands is not cheap, it can be worthwhile for the right person. Here are some of the most common ways to obtain residency in the Cayman Islands through investment.
Toggles:
1. Residency in the Cayman Islands for Persons with Independent Means
The most typical approach for rich persons to get Cayman Islands residency is to apply as an individual with independent means.
Although this is a temporary residency permit, it is valid for 25 years and allows you to bring your spouse and any dependents with you. You will not, however, be permitted to work on the island.
To establish Cayman Islands residency as a person of independent means, you must demonstrate that you have an annual income of about $150,000 earned outside of the Cayman Islands.
If you want to live in Grand Cayman, you must also keep a Cayman Islands bank account with around $500,000 in it and invest $1,200,000 in the country. At least $610,000 of your $1,200,000 must be invested in developed real estate.
If you opt to live on one of the smaller islands, such as Little Cayman or Cayman Brac, the numbers are slightly lower. Your annual income need is just over $90,000, and you only need to invest $610,000 in total. You must, however, invest 50% of that sum in developed real estate, and the bank deposit requirement is the same as in Grand Cayman.
Although the cost is high, if you meet the criteria, applying for a residence permit is a simple process. You’ll fill out an application and pay a charge of around $600, and if your application is approved, you’ll pay a $25,000 price to issue your permit, followed by $1,220 per year to keep it active.
2. Direct Investment Certificate
If you want to make your second residency more profitable, you can obtain a Cayman Islands residency through a Certificate of Direct Investment.
This Certificate is given to someone who is prepared to invest $1,200,000 in a business that creates local jobs and will have an active role in its management. To qualify, the company must demonstrate that it employs at least 30% Caymanians (with some exceptions).
In addition to the raw investment, applicants for a this residency certificate must demonstrate that they have the necessary business skills to run their venture successfully.
The Certificate of Direct Investment, like the residence program for Persons of Independent Means, is a temporary visa valid for 25 years, and you may add spouses and dependents on your application.
Unlike the previous option, you must maintain a physical presence in the country for at least 90 days each year to keep your Certificate of Direct Investment.
The application process for a residency certificate in the Direct Investment category is relatively simple. Once you’ve made your investment, you can apply for your certificate by paying a $1,220 application fee and a $25,000 activation fee for your residence permit if you’re approved.
You will also be required to pay an annual cost corresponding to a work permit holder in your field, which can vary significantly, as well as an additional $1,220 fee per dependant every year.
3. Cayman Islands Residency Certificate via Significant Business Presence
If you invest in a Cayman Islands company or work in senior management, you may be able to apply for a Cayman Islands Residency Certificate through Substantial Business Presence.
You must possess (or aspire to own) at least 10% of the shares in a business in an eligible industry to establish a Business Presence. Financial and legal services are among the authorized industries.
Alternatively, if your employer can demonstrate that you work in a senior management position, you can establish a Substantial Business Presence with substantial management control.
Individuals who meet the requirements for this certificate will be granted a 25-year renewable residence permit as well as the right to work in the Cayman Islands.
This residence permit, however, has a physical presence requirement. To qualify for and keep your permit, you must intend to spend at least 90 days each year in the Islands.
You will pay a $1,220 application fee as well as a $6,100 activation charge for your Cayman Islands Residency Certificate when you submit your application. You must pay an extra $1,200 per dependent, as well as any annual work permit fees, which vary depending on industry and job capability.
4. Permanent Residency in the Cayman Islands
If you eventually want to become a citizen of the Cayman Islands, you need apply for Cayman Islands permanent residency as a Person of Independent Means.
The application process for permanent residency in the Cayman Islands is comparable to that for a general residence permit as a person of independent means. You must demonstrate that you have enough assets to maintain yourself and your dependents, as well as make an investment in the islands.
However, because applying for permanent residency also allows you and your spouse to apply for citizenship in the future, the requirements for this residency option are much higher.
The investment amount has been quadrupled to $2,400,000, and it must be invested entirely in developed real estate. Furthermore, only 250 of these applications are accepted each year.
The permanent residency also allows you and your spouse to work in the Cayman Islands, albeit you may be limited to certain industries.
Applying for permanent residency in the Cayman Islands is similar to other residency applications. If you meet the requirements, you’ll submit an application, pay a $610 charge, and wait for approval. Once approved, you must pay a $122,000 issue fee, plus $1,200 for each dependent, and a variable work permit fee if you intend to work in the Cayman Islands.
The Advantages of Living in Cayman Islands
There’s a reason why Cayman Islands residency is so costly – it’s well worth it.
The Cayman Islands is an ideal area to consider for your second residency since it has abundant natural beauty, strong infrastructure and legal services, a high level of tax-friendliness, and world-class lifestyle possibilities.
- Tax benefits: In the Cayman Islands, there are no corporate, income, capital gains, inheritance, sales (VAT), or periodic property taxes.
- Proximity to the United States: Miami is a 70-minute flight away, and New York City is a 3/12 hour nonstop journey. There are around 55 nonstop flights each week to key North American destinations, with up to 110 in peak season, and a direct flight to London Heathrow five times per week.
- Infrastructure: The Cayman Islands has modern infrastructure, including outstanding healthcare facilities and 4.6 doctors per 1,000 persons, first-rate schools with British and American curricula, dependable utility and telecommunications providers, and high-quality retail and personal service providers.
- Reliable government: As a British Overseas Territory, the Cayman Islands has a democratically elected government and is subject to UK security oversight. The government has been debt-free since 2012 and has run annual budget surpluses since 2016.
- Economy: As one of the world’s largest financial service centers, financial services account for roughly 80% of the country’s GDP. The Cayman Islands also have one of the world’s highest GDP per capita rates.
- Efficiency: Typically, the application procedure takes 3 to 6 months. The RBI application process is made efficient by world-class service providers and an efficient civil service.
- Citizenship: There is no need to dump your current citizenship.
- Language: The Cayman Islands’ official language is English. The RBI programs do not require any language tests.
