What are the key differences between Cayman's two residency by business investment programmes?
Can an applicant eventually apply for a Cayman passport through either of these programmes?
How many applicants typically apply for residency through business investment annually?
What are the various costs associated with applying via either programme?


This Q&A provides insight into Cayman's residency through business investment programmes.

What are the key differences between Cayman's two residency by business investment programmes?

The Certificate of Direct Investment is for those who have made, or propose to make, an investment of at least US$1.2 million in an employment generating business in the Cayman Islands where at least 30% of employees are, or will be, Caymanian. The applicant must also hold substantial management control in this business, such as being a director of the board.

In contrast, the Residency Certificate (Substantial Business Presence) is for those who either:

  • own, or propose to own, a minimum of 10% of shares in an approved category of business through which they have established a substantial business presence in the Cayman Islands; or
  • are employed in a senior management capacity within an approved category of business.

In order to confirm that a substantial business presence has been established, the chief immigration officer will consider whether the applicant has established a physical presence in the Cayman Islands.

There are also some differences in fees (see final question).

Can an applicant eventually apply for a Cayman passport through either of these programmes?

Unfortunately not; the only programme which allows the holder to apply for a Cayman passport after five years is the Certificate of Person of Independent Means, which can be obtained only through the purchase of developed real estate valued over US$2.4 million.

The residency by business investment programme provides the holder with only a 25-year renewable certificate of residency. Applicants cannot upgrade or change their residency certificate once the application has been submitted; therefore, potential investors should have a good idea of their goals for residency in the Cayman Islands before they submit an application.

How many applicants typically apply for residency through business investment annually?

The business investment programmes are not particularly popular compared with the residency by real estate investment options. The government typically approves two or three applications a year.

There are a number of possible reasons for this. Although there is initial interest in these programmes, clients often decide that applying for a work permit is the better option for them. The Cayman Islands issues work permits for legal and financial services professionals fairly often. Once an individual has held a work permit for eight years, they can apply for permanent residency. This is often a more affordable option for applicants, and it also allows them to apply for a Cayman passport in future.

However, clients sometimes need a residency certificate immediately for security of tenure or for tax residency purposes. While the business investment programmes provide this, the real estate residency certificates are much more popular. Real estate is a strong and safe investment in the Cayman Islands; aside from the lack of recurring property tax, real estate has tended to appreciate in value. It is often easier and cheaper to get security of tenure through the real estate investment programmes, especially since the Certificate of Person of Independent Means can be varied to allow the right to work.

What are the various costs associated with applying via either programme?

There are a number of fees associated with the initial application, as outlined in the table below.

Certificate of Direct Investment

Residency Certificate (Substantial Business Presence)

Application fee

US$1,200

US$1,200

Certificate issue fee

US$24,000

US$6,000

Issue fee for a dependant

US$1,200 per dependant

US$1,200

Dependant fee

US$1,200 per dependant per annum

N/A

Application for a variation

US$600

US$600

Annual fee equivalent to that of a person in the same occupation

Fee varies

Fee varies

However, there are other possible fees of which potential investors should be aware. Further, there will be costs associated with setting up the business and different industries have different regulatory requirements. One of the main costs to consider is a trade and business licence, which is fairly straightforward to calculate. This licence requires that there is 60% Caymanian participation within the business; if this is not possible, an exemption will be required which can increase the cost considerably. Further, if the business has a substantial immigrant workforce, work permit fees may be a significant start-up cost.

For further information on this topic please contact Cline Glidden at Ogier by email ([email protected]). The Ogier website can be accessed at www.ogier.com.

An earlier version of this article was published on the Dart Real Estate blog.