If you have long dreamed of retiring to an idyllic lifestyle in the Caribbean and have set your sights on the Cayman Islands, there are a few important things you need to know before you rush out and buy your place in the sun. If your plans are somewhat longer term but you are thinking of buying property now then this article also applies to you.
The Cayman Islands have always welcomed foreign investors but the rules for retirees changed on the 1st January 2004 when The Immigration Law, 2003 came into force (“the Law”). Although the focus of this article is on prospective retirees, the Law also provides for Residential Certificates for Entrepreneurs and Investors who are of high net worth and have made the requisite investment in a local business. Details of the specific requirements for this category of residence are available upon request.
As was the case under the old law, there are still forms to be completed and supporting documents to be provided but the application process itself is relatively straight forward.
Of more importance is ensuring that you qualify to apply.
Permanent Residence for high and relatively high net worth individuals (as it was known prior to the passing of the new Law) has been replaced by what is now known as a Residential Certificate for Retirees. There are several important distinctions between the old and new regimes and knowing and understanding the new rules prior to investing in local real estate are crucial in order to avoid potentially costly investment decisions that do not meet the relevant qualification criteria.
If you are a person of independent means who –
(a) has attained the age of fifty five years or, at the discretion of the Caymanian Status and Permanent Residency Board, a lower age;
(b) has no dependants under the age of sixteen years; and
(c) satisfies the other requirements of section 33 of the Law
then you are qualified to apply to the Chief Immigration Officer for a Residential Certificate for Retirees. If successful, your Certificate would grant you the right to live year round in the Islands for 25 years without the right to work. Certificates are renewable and the initial application fee and the fee payable upon approval are CI$15,250.00 (approx. US$18,600.00).
There are several specific requirements to be met by a prospective applicant and a check list of these items with advice relating to them is easily provided. While each item in and of itself is important (eg. a clean criminal record) perhaps the two most important considerations are the means test and investment requirements.
Simply put, you will need to demonstrate that:
(a) you have a continuous source of annual income in the amount of CI$150,000.00 (approx. US$183,000.00 ) without having to engage in employment in the Islands; and
(b) you have invested the sum of CI$750,000.00 (approx. US$915,000.00) in Grand Cayman of which at least CI$ 250,000.00 (approx. US$305,000.00) must be in developed real estate.
The requirements are lower for persons wishing to retire to Cayman Brac or Little Cayman. Consequently, if you satisfy the income test, make sure you are buying property at the requisite value and that it is not just raw land, unless of course your plans call for waiting to develop prior to submitting your application.
While the information contained in this article is current as at the date it is written it is not exhaustive of the topic and would be investors and retirees should consult a qualified legal adviser for detailed advice before making any investment decisions.
