Work Permits

statement showing that they have sufficient funds to support themselves and a hotel/ condo reservation or a lease. This paperwork is looked at very discreetly and returned to the visitor. If the visitor owns a home in the Cayman Islands and can show the Land Register, then a six-month permission will be granted to them and other visitors travelling and visiting with them.

Entry to Cayman Since COVID-19 At the time of writing (September 2021) the Government has pushed back Cayman’s border reopening until 2022. We hope as a greater percentage of Cayman residents get vaccinated and the vaccination records of overseas travellers can be properly verified, the Government will provide more concrete timelines in due course. For the latest status of ‘Cayman’s Phased Border Reopening Plan’ visit www.caymanresident.com.

NEW ARRIVALS WITHOUT CAYMAN CONNECTIONS

If you are looking to move to the Cayman Islands and are neither Caymanian, nor married to a Caymanian, nor married to a work permit holder, permanent resident or in a civil partnership with one, below are the normal ways you can become legally resident:

1) Work Permits a) Full Work Permits (FWP) b) Temporary Work Permits (TWP) c) Business Visitor’s Permit & Visitor’s Work Visa 2) Government Contracted Workers 3) Special Economic Zone Certificates (SEZ) 4) Global Citizen Certificate 5) Student Visas 6) Certificate of Direct Investment 7) Residency Certificate (Substantial

Business Presence) 8) Residence as a Person of Independent

Means 9) Certificate of Permanent Residence for

Persons of Independent Means It is worth noting that an overriding principle of Cayman Islands Immigration legislation is that employment and career opportunities are offered to Caymanians before any other nationality. Caymanians are given preference over similarly qualified expatriates and employers must generally take steps to provide training opportunities to Caymanians who have the potential to fill a particular position. With the reality that Caymanians have already become a minority in their own Islands, efforts are made to ensure that a balance of other nationalities exists, so that no other nationality is culturally or numerically dominant. If a Caymanian cannot be found for the position, then preference in employment opportunities is required to be given first to the holders of Residency and Employment Rights Certificates who are married to Caymanians, next to Permanent Residents with the Right to Work and finally, to other persons who are already legally and ordinarily resident in these Islands, including existing work permit holders and their approved dependants. As a general rule, only if these categories of persons are unavailable for a position will a permit be granted to a person who is from overseas.

1. WORK PERMITS Despite being a British Overseas Territory, the Cayman Islands are not part of the United Kingdom. Therefore, no advantage is given to British nationals over any other nationality. However, not every foreign national working in the Cayman Islands needs a work permit. There are specific categories of persons who are exempt from the requirements, for example, Cayman Islands Government employees. Others can be exempted subject to strict requirements, for example, journalists representing a recognised news organisation and nonexecutive directors of companies carrying on business in the Cayman Islands are allowed to attend board meetings, provided they remain in the Cayman Islands for no longer than ten days. A few other examples of people and activities that are exempted include: visitors who are coming to Cayman to organise, attend or speak at a conference or seminar; those representing an overseas educational institution who have come to promote or interview applicants for places, and those visiting for the purpose a) Full Work Permit (FWP) These allow a person to work and remain in the Cayman Islands for a specified period of time. All work permit fees are the responsibility of the employer. The law prohibits employers from requiring employees to pay any part of such fees. Annual fees range from nil (for positions in education) to up to CI$32,400 for the most senior positions in the legal industry. It is an offence for any non-Caymanian engaging in gainful occupation (and who is not expressly exempted from the work permit regime) to engage in gainful occupation in the Islands without a work permit or alternative permission.

Prior to granting or renewing a permit, the relevant Board or the Director of WORC will need to be satisfied of a number of matters including: the need to engage the services of the prospective worker, attempts to find a Caymanian or other person who is already legally resident to fill the role; the character of the worker and the protection of local interests. The person is also required to have proficiency in the English language if from a nonEnglish speaking country. Many skilled workers are granted a permit for between two and five years, with a renewal fee payable each year. Note that work permits for self-employed people are only issued in exceptional circumstances. Employers, in the private sector, but excluding those employing household staff, must hold a valid Trade & Business licence.

Standard Term Limit (9 Years) All foreign nationals gainfully employed in the Cayman Islands are currently entitled to be considered for the grant of a work permit for up to nine years. After eight years, most residents are assured of the right to apply for Permanent Residence. After nine years, foreign nationals who are subject to a nine-year term limit and have not applied for Permanent Residence will generally not be granted any form of work

permit until they have ceased to be resident in the Cayman Islands for at least one year. In most instances, this means they will be expected to leave the Cayman Islands for a minimum of 12 months before they can be granted a new work permit. Visits in the intervening period for vacation and the like as a genuine tourist visitor do, however, seem to be generally permitted.

Note: there are exemptions to the term limit provisions. For example, a person married to a government worker, or a person whose term limit is set to expire after their spouse’s, can arrange for their permit to be renewed until their spouse’s term limit is reached.

In order to understand the reasoning behind the Government’s creation of limits on work permit terms, it is helpful to know the history of the population increase in this diverse community. The Cayman Islands have undergone a dramatic change since the early 1970s. At the start of that decade, the population was approximately 10,000 people and now, 50 years later, there are indications that more than 70,000 people now live in the Cayman Islands. Much of this dramatic increase has come about as a result of foreign nationals settling on the Islands and obtaining permanent rights of tenure. With that change has come not only strains on the infrastructure, but a recognition amongst generational Caymanians that their culture might be overwhelmed if the process is not managed correctly. There is also a perception by many Caymanians that their participation in the success of Cayman is diminishing. Whilst the people of the Cayman Islands are welcoming towards foreign nationals, there has been a realisation that continuing to invite ever increasing numbers of individuals to acquire security of tenure and become permanent inhabitants of Cayman is unsustainable. Even with the hurdle of Term Limits, the population growth has continued at an accelerating pace.

Registering a Job on JobsCayman It is now a requirement that all jobs are registered on the jobcayman.worc.gov. ky web portal prior to applying for or renewing a work permit. The first thing you need to do is register your company and then you can register the specific job that you are trying to fill. Very detailed steps can be found on the Cayman Resident website, but if you are having problems, then call WORC on (345) 945 9672 and someone will talk you through what to do. You can then either email the work permit documents to WORCpermitsubmissions@ gov.ky or drop them off at WORC’s office on Mary Street.

Required Forms All immigration permit forms and instructions can be downloaded from WORC’s website, www.worc.ky. Please note that an original Police Clearance Certificate (and a certified translation if not in English) is required. At present, there is a general expectation of there being a raised seal on such documents. Translations are generally required to be provided through an approved translator. Make a copy of all the paperwork submitted and keep it on file for the rare occasion that the paperwork is lost by the WORC.

Police Clearance Certificates (for persons already resident in Cayman for six months) These forms must now be requested online: 1) Visit www.eservices.gov.ky and click on the ‘Apply for a police clearance certificate’ tab. 2) Fill in the form. 3) Upload the picture page of your passport and a current work permit stamp for work permit holders. 4) Request for the police clearance to be emailed to you or mailed to you. The former takes 2 days and the latter about four weeks. 5) Pay CI$25 per police clearance.

Medicals for Immigration Purposes All work permits over three months in duration, including work permit renewals, Permanent Residency and Caymanian Status applications must be accompanied by a completed medical questionnaire. Spouses and children over the age of 18 must also submit a medical questionnaire. Among other things, the medical report will require you to take a blood test and furnish lab reports with HIV and VDRL tests included. You will also need a chest X-ray. Medical examinations are required on first application and once every three years thereafter. Lab tests have to be repeated with each medical exam but chest X-rays are only required once every five years. Getting a medical done is a very simple process and can be completed in 30 minutes in Cayman. A medical questionnaire that is completed overseas and in a foreign language must be translated into English and the translation certified as a true copy of the original.

Change of Employer, Promotion or Redesignation Subject to some exceptions, the holder of a work permit may not change his/her employer for the duration of a permit. Changing employers upon the expiry of a work permit is permitted, although a release letter from the previous employer is usually requested before the relevant board or WORC official will grant a permit in favour of a new employer. Protections are in place to prevent expatriate workers from falling victim to unscrupulous employers and WORC will assist workers as appropriate in relevant circumstances.

During the duration of a work permit, the holder may not be promoted or re-designated without their employer notifying the relevant board (or director of WORC) and formal consent being received. This restriction is intended to protect opportunities for Caymanians and to ensure that due revenue is collected. Applications must be made well in advance, with new positions not started until after all required approvals have been forthcoming.

Rules on Residing on-Island Whilst a Work Permit is Processing WORC generally requires that you be offIsland while a Full Work Permit (FWP) or Temporary Work Permit (TWP)

application is in process. Therefore, do not book your flight until your permit has been approved or in normal circumstances you will risk being asked to leave again.. Further, although the vast majority of applications are approved without issue, there can be no guarantee that any application will be ultimately successful.

However, if you are already on-Island and are switching from one employer to another you may not need to leave the Island while your new work permit is processing. Having said this, you should make sure that your release letter from your current employer is dated to take effect on the exact date on which you hope to be authorised to commence gainful occupation in the service of your new employer. If this is not possible, then you may be required to get a Visitor’s stamp in your passport when your current work permit is cancelled, to avoid any prospect of you being labelled as an overstayer.

Dependants of a Work Permit Holder The relevant Immigration Board has to be satisfied that the worker has sufficient income available to adequately support any dependants. Currently, the Board would expect to see a minimum monthly household income in the region of CI$3,500 for one dependant to be included, with an increase of CI$500 for each additional dependant. This is a guideline only. In every case, the character, reputation and health of your dependants is taken into consideration, as well as whether you can comfortably afford to feed, house, educate and maintain them in the Islands. The possibility is that you will be granted a work permit, but your children will not be allowed to accompany you if your income is considered insufficient. For a complete breakdown of the immigration rules for children born in or residing in Cayman to expatriates, please see the Cayman Parent 2022 magazine, which has an extensive section on this subject.

Each year, a fee of CI$250 will be collected for each dependant of a worker in the unskilled category and CI$500 for each dependant of a worker in the skilled category. It appears to be open to the employer and the employee to agree between them who will pay for this as it does not constitute part of the Work Permit fee. A non-refundable fee of CI$200 per person is also collected for repatriation. Either you or your employer can submit the letter applying for your spouse or children to be a dependant on your work permit, but your employer must submit a letter indicating the number of hours per week you work, your monthly income and any other benefits you receive. If each parent is working, then the employers of both must provide a letter. If your family members are not added as dependants, then they can only stay here as temporary visitors. Note that only the following can be dependants of a work permit holder: spouses, children (including step and adopted children), grandchildren, parents, step-parents, grandparents, brothers, sisters (including half-brothers and halfsisters) and civil partners. This means that girlfriends, boyfriends and fiancées cannot be listed as dependants on a person’s Work HSM is a full-service law firm in the Cayman Islands. Whether you are a business or an individual with a need for Immigration, Employment or Property guidance, HSM’s team of dedicated attorneys have extensive and market leading experience in the identification and implementation of effective solutions.

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Permit. However, the Cayman Islands now generally recognises legally married samesex spouses as dependants.

If a girlfriend or boyfriend comes to the Island without their own work permit, they will be allowed in as a visitor and in all likelihood will be given as little as 30 days to stay. It would help their case if they arrived at the airport with a letter from their ‘sponsor’ (the permit holder) that says that they will be supported while they are here. If they come in with this letter, they might be given a total of three to six months to stay. Stays of longer than six months in any calendar year by any person classed as a visitor are, in normal circumstances, unlikely to be permitted.

Dependant Children Over 18 Years Dependant children of work permit holders can only remain on a parent’s work permit after the age of 18 if they are a) in fulltime tertiary education or b) in special circumstances (such as the child is unable, for medical or other exceptional reasons, to maintain themselves). Should your child turn 18 before they finish secondary school, the Immigration authorities will usually allow your child to remain in Cayman, although not formally as a dependant on your work permit, until they complete their secondary education. However, if your child chooses not to go on to university or college, and they want to continue living in the Cayman Islands, then their only option may be to try and get a work permit. At this point they are competing with every Caymanian and Permanent Resident school leaver who will have precedence over them, placing them at distinct disadvantage in seeking job opportunities.

See further in this chapter for rules on children of Permanent Residents who are over the age of 18.

Divorced or Divorcing Couples Note that should an expat couple living in Cayman decide to divorce, any nonworking, previously dependent spouse will have no particular right to stay in Cayman. Residence based purely on the presence of children is not contemplated by the Immigration Law. Children in such circumstances can remain as approved dependants of the parent who is on a work permit or government contract, and continue to attend full-time education until adulthood (as late as 24 if attending university). However, the formerly dependent parent will likely only be able to remain if they obtain their own work permit (including through the Special Economic Zone regime) or government contract; or alternatively secure some form of residency as a person of independent means. They may be permitted to remain as a tourist, but remaining in such a capacity for more than 90 days can present difficulties, and no permission ought to be expected after six months in any year.

On the other hand, the former spouse of a Caymanian, who is the parent of Caymanian children, will usually be allowed to remain (subject to various approvals) and be permitted to work until the children complete their education or their 24th birthday, whichever happens sooner. See further in this chapter under Permanent Residency (PR) for details on those with PR divorcing and the immigration implications it can have on you depending on your residency status.

b) Temporary Work Permit (TWP) In appropriate circumstances and upon suitable application, the Director of WORC or their designate may grant a Temporary Work Permit to an individual, permitting them to engage in gainful employment in the Cayman Islands. Such permits, if granted, range from terms of one month up to a maximum of six months and generally cannot be extended or renewed. An eight-month permit, “A Seasonal Work Permit”, which can span the high season in the tourism industry, is also available. These cannot be extended or renewed.

While Temporary Work Permits are often used as a bridge between the arrival of an expatriate worker and the issuance of their Full Work Permit, their use (save in exceptional circumstances) for persons who are not genuinely intended to be temporary employees is discouraged. Nevertheless, where urgency is required in the granting of a work permit, seeking and gaining of permissions, the authorities will tolerate the use of the Temporary Work Permit regime to achieve expedition. Notes on a TWP: 1) A medical questionnaire is only required if the permit is being sought for more than three months; 2) There is no prohibition on applicants for TWPs having dependants; 3) TWP applications can be expedited on payment of an ‘express fee’, which can, in normal circumstances, guarantee initial processing within 48 hours. See worc.ky for necessary forms needed. Anticipated changes in the system, which are expected to reduce the application time for Full Work Permits to two weeks, will likely significantly reduce the ability of employers to rely on Temporary Work Permits for Full-Time positions.

c) Business Visitor’s Permit & Visitor’s Work Visa Any business in Cayman that regularly needs workers to come from overseas to work for no more than 14 days on any particular visit may seek to apply for a Business Visitor’s Permit allowing such individual(s) permission to work for a specified number of visits per year, subject to strict limitations. These Business Visitor’s Permits are not available for people attending for one visit only.

There is also a category of Visitor’s Work Visa, which permits individuals who are employed outside of the Islands, and who wish to visit for up to five calendar days at a time, in order to engage in commercial activity with a locally licensed entity or person (a ‘sponsor’), to apply for the grant of a Visitor’s Work Visa. To obtain a grant on arrival, the local business or visiting worker must download a ‘Letter of Invitation’ form from the immigration website and email it to imm-vwv@gov.ky at least 24 hours

before they are due to arrive. It should be noted that once approved, the person will be required to pay CI$100 at the airport. The Visitor’s Work Visa is not available to those who are employed in a professional capacity (lawyers, accountants, medical professionals, architects, surveyors, teachers and other occupations) or who are otherwise not entitled to a work permit by virtue of having reached their term limit. The Visitor’s Work Visa also does not exempt someone from the requirement to obtain an entry visa if they possess a passport from a country that would otherwise require a Visitor’s Visa to enter the Cayman Islands. In addition, a business visitor may not hold more than one Visitor’s Work Visa in relation to the same sponsor or sponsors within the same calendar month, but, unlike a Business Visitor’s Permit, a Visitor’s Visa may be used for a single visit. Visitors Work Visas are dealt with by Customs and Border Control, not WORC.

2. GOVERNMENT CONTRACTED WORKERS Any person employed as a Civil Servant by the Cayman Islands Government, or employed by other prescribed employers, including the Government of the United Kingdom, does not require a formal work permit, and will have appropriate permissions for them, and approved dependents, to live in the Cayman Islands stamped into their passports. Whilst no Term Limit is currently applied to such persons, they are eligible to apply for Permanent Residence pursuant to the points system, once they have been resident in the Islands for more than eight years. Care must be taken to ensure that any dependant children are able, should they wish, to remain resident in the Cayman Islands in the event that they cease to be classed as dependants on their parent’s Government contract.

3. SPECIAL ECONOMIC ZONE CERTIFICATE (SEZ) These certificates are in effect a special category of work permit. They are only available to employees of entities (“Special Economic Zone Enterprises”) established within Cayman Enterprise City’s SEZs which include Cayman Tech City, Cayman Commodities & Derivatives City and Cayman Maritime & Aviation City. Zone Certificates enjoy certain advantages over traditional work permits, including in many instances, a lower cost to employers, and an exemption from any requirement to prefer Caymanians or other legal residents for any employment. Accordingly, no advertising is required as part of the application process and the permissions are capable of being granted in only a few weeks. Applications are available from Cayman Enterprise City and from a number of local law firms, who assist enterprises establishing within an SEZ. See the Running a Business chapter for more information on Cayman’s SEZs.

4. GLOBAL CITIZEN CERTIFICATE Although coming to a close for new applicants, for the last two years the Global Citizen Certificate has allowed people with financial independence to relocate to the Cayman Islands and work remotely, while living and enjoying Cayman. For many this was a straightforward and cost effective way to dip a toe into all that Cayman has to offer, while enjoying all the benefits of formal residence.

The two-year Certificate is still running for all those that applied before the deadline of October 31st 2021 and who could demonstrate that their existing (and anticipated ongoing) employment was based outside of the Cayman Islands. The criteria for eligibility included a demonstrable annual income of no less than US$100,000 for a single person, US$150,000 for a couple, and US$180,000 for an applicant and spouse and children. The holders of these certificates are expected to reside in the Cayman Islands for a minimum of 90 days each year.

The Government fees are US$1,469 per annum for an applicant and spouse, with a further US$500 payable for each dependent. Prior to the expiry of any Certificate it is anticipated that the holders will be provided with the opportunity to transition into alternative immigration permissions. Accordingly, it is expected that it can form a part of the initial stages towards ultimate citizenship. In case the programme is continued beyond October 31st 2021, here is the online application: https://www.visitcaymanislands.com/enus/global-citizen-concierge/apply-now/ application-form.

5. STUDENT VISAS A non-Caymanian who is 18 years of age or older, seeking to enter the Cayman Islands to attend a recognised educational institution on a full-time basis, may be granted a student visa. The student should be self-sufficient or provide proof of support from other means. They must also submit a medical questionnaire and a police clearance certificate when applying. The application process generally takes four weeks. The student visa does not allow the student to engage in any gainful occupation. The student is expected to leave the Cayman Islands on completion of the programme. Student visas can be granted for a period of up to four years but may be extended for a further 12 months. A person on a student visa may, after the proper application, have a dependant added to their application and can seek other permissions simultaneously with or following, their student visa’s expiry. It is possible, in appropriate circumstances, for a student to be given a visa to study online whilst in the Cayman Islands, even though the institution is not itself physically here.

6. CERTIFICATES OF DIRECT INVESTMENT Wealthy individuals who are in a position to invest a substantial sum in an employment generating business or businesses in the Cayman Islands, may wish to participate in an incentive scheme intended to attract investors and their dependants. Such persons may, provided they can demonstrate an investment (or imminent investment) of a minimum

of CI$1,000,000 in an employment generating business (or businesses) on the Island, apply to the Director of WORC for a Certificate of Direct Investment.

Approval-in-Principle Certificates which are valid for six months are available prior to applying for a full certificate. Full certificates are valid for 25 years and are renewable. Such a certificate entitles the holder to reside in the Cayman Islands and to work in the business or businesses in which the holder has invested.

The spouse and dependent children (where applicable) of the holder of a Certificate of Direct Investment will, on successful application, be granted a Direct Investment Holder’s (Dependant’s) Certificate, permitting them to reside in the Islands for the duration of that certificate. The application fee is CI$1,000 with a further CI$20,000 payable on issue of the certificate with an additional CI$1,000 payable for each approved dependant.

7. RESIDENCY CERTIFICATES (SUBSTANTIAL BUSINESS PRESENCE) A Residency Certificate (Substantial Business Presence) is available to individuals who either own at least a 10% share in an approved category of business or will be employed in a senior management capacity within such a business. In each case, the business must have a substantial presence in the Cayman Islands. It is designed and intended to be less onerous than the more established option of a Certificate of Direct Investment and is not limited to owners of the business.

Approved categories of business include: fund administration, brokerage services, investment and fund management services, investment banking, financial trading (including foreign exchange, securities and derivatives), captive insurance or reinsurance management services and underwriting, actuarial services, insurance claims management, family office, hedge fund administration, any business in Cayman Brac providing back office support, and any company registered as an exempted company under section 164 of the Companies Act (2018 Revision). It is expected that people in these positions would fill a senior management capacity and therefore ordinarily attract an annual work permit fee of CI$20,925 or above (or CI$5,000 or above if based in Cayman Brac). Provided the Director of WORC is satisfied that the applicant and any spouse have clean criminal records and that they and any dependants are in good health and possess adequate health insurance, as well as fulfilling the other requirements, then the applicant will be issued a 25 year Residency Certificate. A grant fee of CI$5,000 is due on issuance, with a further CI$1,000 payable in respect to each approved dependant. In addition, Certificate holders are required to pay an annual fee equivalent to that payable by a work permit holder in the same occupation.

8. RESIDENCE AS A PERSON OF INDEPENDENT MEANS For foreign nationals not wishing to work in the Cayman Islands but simply wishing to have the right to reside, there are alternative options. In particular, one can apply to the Director of WORC for a Residency Certificate which is valid for 25 years and is renewable. To reside in Grand Cayman, the person must show proof of an annual income of at least CI$120,000 (without engaging in employment in the Cayman Islands) along with an investment of CI$1,000,000 (of which CI$500,000 must be in developed real estate). The “remaining” CI$500,000 must be invested in a company or property – and simply holding assets with a broker or monies in a local bank account (whilst encouraged) do not count for these purposes. Investing in a local business, or even one which has shares publicly traded such as Caribbean Utilities Company can count. Most often, applicants will simply buy a substantial home (or a number of apartments) and immediately meet the requirement.

A deposit maintained in a local bank or institution of no less than CI$400,000 deems an applicant to have sufficient funds (and income) to maintain themselves and their dependants. Alternatively, they will generally be expected to prove an annual income of no less than CI$120,000, without needing to work.

To become resident in Little Cayman or Cayman Brac, proof of an annual income of CI$75,000 without the need to be employed in the Cayman Islands is required, as well as an investment of CI$500,000 locally, of which at least CI$250,000 must be in developed residential real estate.

Whichever Island is to become your home, there is a one-time fee payable on grant of CI$20,000 and a further CI$1,000 payable for each approved dependant. The initial application fee is CI$500. The CI$1,000 dependant’s fee is then payable annually. The process of applying for a Residency Certificate is relatively straightforward although at present requires approximately six months to be processed. Legal fees for this option are unlikely to exceed US$8,000.

Please note that with this form of Permanent Residency you can never claim to have changed your Domicile of Choice. Please consider this if you are trying to change your domicile permanently. If this is the case then you should seek the Certificate of Permanent Residency.

9. CERTIFICATES OF PERMANENT RESIDENCE FOR PERSONS OF INDEPENDENT MEANS This is the ultimate permission which can grant Permanent Residence with the right to resident permanently in the Islands for the rest of ones life. It is based on investment, rather than on waiting eight years to become eligible to apply, subject to a points system, for Permanent Residency. Unlike Residency for Persons of Independent Means, this option has no expiry date and qualifies the holder (upon certain criteria being met) to become eligible for Naturalisation as a British Overseas Territories Citizen (BOTC) once they have been resident in Cayman for five years. Once naturalised they are entitled to a BOTC (Cayman Islands) passport. Upon