Jan 2025
Continued growth in the industry, confidence in the jurisdiction, and economic substance factors have seen a number of leading reinsurers establish or expand their physical presence in the Cayman Islands over the past year. For these companies, understanding and complying with immigration requirements is a daunting yet critically important matter. Who is allowed to work? What types of employment authorisation are available and suitable for particular situations? What are the processes for obtaining a particular immigration permission? How long does it take? And, importantly, what are the cost implications? Conyers’ resident immigration expert Christopher Eakin answers some of the most frequently asked questions.
Who requires authorisation to work in the Cayman Islands?
The legal framework that regulates immigration seeks to protect Caymanian employment interests. Generally, unless a person is Caymanian, the spouse/civil partner of a Caymanian, a permanent resident, Government employee, or holder of a particular category of Residency Certificate for investors or senior personnel in certain sectors of the financial services industry, a work permit is required.
Do employees of an exempted company require a work permit?
Non-Caymanian employees of exempted companies based in the Cayman Islands do require a work permit (or other appropriate form of authorisation to work), even though the company’s activities are restricted to its business outside the Islands.
What types of work permit are available?
Full work permits can be granted for up to three years generally, but before an application can be made the company must show that every effort has been made to identify a qualified Caymanian for the position. Evidence must also be provided that the proposed employee has the qualifications and experience required for the position, and that they are of good character. Processing time for a full work permit can be up to three months.
Temporary Work Permits can be issued for periods of up to six months and can be used to employ a worker who will be employed by the (re)insurer in the Cayman Islands, or an employee of another company outside the Cayman Islands, e.g. an affiliate, who is needed to work or provide services on a short-term basis for the reinsurer in Cayman. As a Temporary Work Permit can be obtained within 48 hours, and without the need to advertise in advance of applying, this is often the preferred route when a company is taking on a new employee.
How much do work permits cost?
Government fees for work permits comprise a flat rate application/dependant fee and a variable occupation/job title fee. Generally, the more senior the position, the higher the fee. For example, the annual fee for a C-suite executive in the (re)insurance industry is from US$19,800-US$33,750; for a (re)insurance underwriter it would be US$16,650. The following uses an actuary as an example:
TWP Validity period 1-90 days | TWP validity period 91-180 days | Annual Work Permit | |
Application fee | US$85 (flat fee) | US$85 (flat fee) | US$122 (flat fee) |
Occupation fee (based on an actuary) | US$1,830 (flat fee) | US$8,325 (50% of the annual fee) | US$16,650 (per annum) |
Dependant fee (per dependant) | US$305 (flat fee) | US$305 (flat fee) | US$610 (per annum) |
Expedited processing fee | US$366 (flat fee) | US$366 (flat fee) | n/a |
Repatriation fee (applicant and each accompanying dependant) | n/a | n/a | US$244 (flat fee) |
Can a new employee be in the Cayman Islands when their work permit application is being considered?
If the prospective employee is not already a resident, they cannot be in the Islands when their work permit application is submitted or while it is being processed, unless there are extenuating circumstances.
What other types of employment authorisation are there?
A Business Visitor’s Permit (BVP) is an immigration permission available to (re)insurers and others based in the Cayman Islands that allow persons ordinarily resident outside the Cayman Islands to be employed for short periods on multiple occasions throughout the year. When making an application, the company simply states how many visits are needed (minimum two, no upper limit). The maximum length of time that a person can stay on any one visit is fourteen days.
Fees for a BVP comprise an application fee (US$61) plus a fee based on the number of visits being requested and the visitor’s occupation. This ranges from US$183-US$915 per visit. A BVP can be issued within 48hours.
A Visitor’s Work Visa (VWV) allows individuals employed outside the Cayman Islands to engage in commercial activities with a Cayman company, including (re)insurers.
To be eligible for a VWV the person must:
- be employed full time outside the Cayman Islands;
- be coming to the Islands for no more than five calendar days;
- be formally sponsored by the (re)insurer;
- be ineligible for any of the prescribed activities that are exempted from work permit requirements;
- possess a valid visa for the Cayman Islands, if required;
- not be a ‘professional employee’ (lawyer, accountant); and
- not have held a VWV for the same (re)insurer in the same calendar month.
Applying for a VWV is straightforward. No less than 24 hours before arriving in the Cayman Islands the Cayman (re)insurer must email a standard form letter to the Customs & Border Control Agency (CBC) confirming its sponsorship of the individual. When the visitor then arrives in Cayman they must pay a fee of CI$100/US$122. A separate sponsorship letter must be sent in advance of each visit.
A VWV cannot be extended or renewed unless there are exceptional circumstances, and only then for a further five calendar days after which the holder must leave the Islands. CBC agents do however have discretion to allow a person to spend a few extra days in the Islands for touristic purposes, though details of this should be provided in the sponsorship letter. Also, the (re)insurer cannot apply for a work permit for the holder of a VWV while that person is in the Islands.
A Residency Certificate (Substantial Business Presence) was introduced by the Cayman Islands Government over ten years ago specifically to attract reinsurers to the jurisdiction.
The facility is available to a person who either owns a minimum of 10% of the shares in an ‘approved category of business’ or is to be employed in a ‘senior management capacity’ within such a business. Approved categories of business include captive insurance or reinsurance management services, reinsurance underwriting, actuarial services, insurance claims management and companies registered as an exempted company. A Certificate holder is allowed to work for the company for 25 years (renewable) and they may also be accompanied by dependants.
Unlike a work permit, which must be renewed every 1-3 years, with advertising requirements having to be satisfied on each occasion, the Residency Certificate offers considerable business certainty for both the (re)insurer and the key senior personnel, providing comfort that they will be able to remain on the Island for up to 25 years.
Does a company director require any form of immigration authorisation in order to attend and participate in a Board meeting in the Cayman Islands?
Persons attending a shareholder or Board of Directors meeting in that capacity do not require a work permit provided that their stay in the Cayman Islands does not exceed ten days and they do not engage in any other activity that would require a work permit.
The following are examples of other activities that are also exempted from work permit requirements (subject to the same provisos above):
- attending trade fairs, conferences and seminars as an ordinary participant
- being a guest speaker at a conference where that event is a single or occasional event and not part of a commercial venture
- working as a non-executive director of a business being carried on in the Islands where the person is not involved in the day to day operations in the Islands but is visiting in his capacity as a director only
- coming from an overseas office of a locally licensed entity, including (re)insurers, whose presence is required to provide training and instructional techniques to staff
- attending a meeting with a local (re)insurer or other entity
Although not legally required, confirmation that a visitor qualifies for an exemption can be obtained before their arrival in the Islands.
How can Conyers help?
Our in-house immigration law specialists assist (re)insurance companies already operating in the Islands and those in the process of relocating with all aspects of immigration compliance. This can range from providing bespoke advice on specific legal issues, preparation or review of employment contracts, to managing a company’s full immigration needs for its entire workforce. We also routinely assist individuals seeking permanent residence, investment-based residence facilities, British Overseas Territories Citizenship/British Citizenship and the right to be Caymanian.