Caymans Lure Wealthy Investors

by Phillip Morton, Investors Offshore.com

05 May 2010

The Cayman Islands parliament on April 28 passed the Immigration (Amendment) Bill 2010, which 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:

• Have a net worth of at least KYD6m;
• Invest at least KYD2.4m in licensed businesses with workforces comprising of at least 50% Caymanians, that contribute towards the prosperity of the territory;
• Pass checks on business competence, show financial records of their businesses’ stability, and show they undertake a managerial role in their given area; and
• Possess a clean criminal record and be of sound health with adequate health insurance.

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. Resident individuals under the scheme would pay an annual fee of KYD20,000, he explained.

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.”

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