The Cayman Islands Residency by Investment Ultimate Guide

The Cayman Islands has long been a preferred destination among foreign investors, driven by its status as a tax haven and high levels of security. Besides optimizing taxes, a strategic Cayman Islands residency by investment program offers high-net-worth individuals permanent residency. 

The Certificate of Permanent Residence for Persons of Independent Means (R42) is a Cayman Islands residency by investment program that grants a Certificate of Permanent Residence to foreign nationals who invest at least CI $2 million in the country’s economy.  

The sole option to qualify is by purchasing residential real estate, enabling permanent residency while also serving as a potentially appreciating asset in a stable nation. 

Provided R42 Certificate holders adhere to the requirements established by The Cayman Islands Department of Immigration, they will maintain permanent resident status. 

• Cayman Islands residency by investment grants permanent residency to individuals who purchase real estate valued at least CI $2 million.
• Permanent residents in The Cayman Islands enjoy an attractive tax structure, including no personal income, capital gains, inheritance, or wealth taxes.
• Investors applying for a Certificate of Permanent Residence for Persons of Independent Means can include their spouse and dependent children under 18.
• The Certificate of Permanent Residence for Persons of Independent Means R42 option is limited to 250 per year.

The Cayman Islands Certificate of Permanent Residence for Persons of Independent Means (R42) is the nation’s premier permanent residency by investment program. Established under The Cayman Islands Department of Workforce Opportunities and Residency Cayman (WORC) Law, the program allows wealthy foreign nationals to obtain a permanent residence permit by making a significant financial investment. 

Non-Caymanian nationals who purchase developed real estate valued at least CI $2 million (USD $2.4 million) are eligible to apply for a Cayman Islands Permanent Residence Certificate, with indefinite validity. 

Consistent with its moniker “Independent Means,” the residency certificate is tied to the investor having the financial resources to sustain themself without employment. However, for investors seeking employment or business investment, they can request approval from The Cayman Islands government. 

The Director of WORC in The Cayman Islands processes applications for a Certificate of Permanent Residence through R42, with approvals limited to 250 per annum. 

• Favorable tax environment: The Cayman Islands is one of the world’s most renowned tax havens. All investors benefit from Cayman no income tax residency, and tax-efficient residence also includes no inheritance tax, wealth tax, capital gains tax, or corporate taxes. 
• Permanent residence status: Cayman residency validity is indefinite through the Independent Means Visa R42, with the sole requirement being that the developed real estate investment remains active to maintain permanent status. 
• Family inclusion: Investors seeking residency for their family members can include their spouse and dependent children in their application. 
• Minimal residency requirement: The minimum residency requirement to maintain a residency Certificate for Persons of Independent Means is just one day annually. 
• Stable governance: The Cayman Islands is a stable and politically neutral British Overseas Territory, with strong property rights and long-standing economic stability.  
• High standard of living: The Cayman Islands offers one of the highest standards of living in the Caribbean, characterized as one of the safest islands in the region, with residents enjoying modern infrastructure and excellent healthcare facilities. 
• Proximity to the US: Direct flights are available to The Cayman Islands from several hubs across the United States. 
• Path to naturalization: A significant advantage of the Certificate of Permanent Residence for Persons of Independent Means Visa R42 is that it is the only Caymans long-term residency path to naturalization and a Cayman Islands passport. 

To be eligible for the R42 Certificate of Permanent Residence for Persons of Independent Means, the applicant must: 

• Be over 18 years of age 
• Be a person of good character 
• Be in good health 
• Be able to demonstrate annual income or financial worth sufficient to support oneself and family members without employment in The Cayman Islands 
• Provide proof of investment of at least CI $2 million (USD $2.4 million) without financing. 

Qualifying dependents 

Eligible family members under the Certificate of Permanent Residence for Persons of Independent Means R42 include: 

• A spouse 
• Dependent children under 18 
• Children in full-time tertiary education or otherwise approved by the Chief Immigration Officer 

The Cayman Islands residency by investment through the Persons of Independent Means R42 category is based entirely on a developed residential real estate investment. Unlike other residency by investment programs in the Caribbean, business investment, fund donations, and government bond acquisitions do not qualify. 

The minimum investment amount to qualify for the R42 category is CI $2 million (USD $2.4 million). The investor must demonstrate that the purchase was made outright with their own capital and no financing. 

All islands of The Cayman Islands, including Grand Cayman, Cayman Brac, and Little Cayman, are qualified destinations, provided the property investment meets the developed residential real estate category and a minimum investment threshold of CI $2 million. 

While Caribbean citizenship by investment programs typically require a minimum holding period of five to seven years, the initial investment in developed real estate in The Cayman Islands must be held indefinitely to maintain permanent resident status. 

• Completed R42 application form 
• Cover letter addressed to the Director of WORC detailing the grounds for submission 
• Original Police Clearance Certificate 
• Original medical declaration 
• Evidence of private health insurance valid in The Cayman Islands 
• Copy of the biodata page of a valid passport 
• One passport-sized photograph  
• Bank reference letter or financial statements proving financial standing  
• Proof of annual income showing sufficient financial resources  
• Three written character references from non-relatives of the applicant and spouse, who have known the main applicant for at least three years 
• Copy of the marriage certificate (if applicable)  
• Copies of Land Registry and Land Transfer certificates showing the minimum investment of CI $2 million 
• Payment of the non-refundable application fee of CI $500 (USD $600) 
• Copy of the marriage certificate (if applicable)  
• Birth certificates for dependent children (if applicable)  
• Police clearance certificates for dependents aged 18 and over (if applicable) 
• All foreign documents must be properly verified by apostille or legalization. A certified translation in English is required for any non-English supporting documents. 

Applications for an R42 Certificate of Permanent Residence are reviewed and processed by the Director of WORC in The Cayman Islands. 

1. Make a qualifying investment: The investor makes the required developed residential real estate investment. 
2. Prepare the application: Gather all required documents, including the application form, Land Registry and Land Transfer documentation, and criminal record certificates. Ensure that translations and apostilles are completed where necessary.  
3. Submit application: Submit the R42 Certificate of Permanent Residence for Persons of Independent Means application form and non-refundable application fee of CI $500 to the Director of WORC in The Cayman Islands. 
4. Due diligence checks: The Director conducts due diligence on the applicant, requesting supporting documentation if necessary. 
5. Application approval: If approved, the applicant pays a one-time issuance fee of CI $100,000 (USD $120,000). A CI $1,000 (USD $1,200) must be paid for any dependents included in the application. Once fees are settled, the Residency Certificate for Persons of Independent Means is issued. 

Processing time 

The Cayman Islands residency processing time through the Certificate of Permanent Residence for Persons of Independent Means is about three to six months from the date of submission, subject to the application’s completeness, document verification, screening, and any further requests from WORC. 

As a British Overseas Territory, The Cayman Islands does not offer independent citizenship; nationality is determined by British law. British Overseas Territories citizenship is granted through a discretionary naturalization process based on residency. 

The Certificate of Permanent Residence for Persons of Independent Means (R42) is the only Cayman Islands residency by investment visa that provides a path for permanent residents to naturalize as a British Overseas Territories citizen. 

Eligibility for citizenship and a British Overseas passport requires permanent residents to have been:  

• Legally and ordinarily resident in The Cayman Islands for at least five years  
• Permanent residents for at least 12 months before applying for naturalization 
• Physically living in The Cayman Islands for the majority of the five-year period 

While residency for Persons of Independent Means (R42) requires an annual physical presence of one day to keep permanent residency, a citizenship application typically involves significantly more physical presence to be valid.