Changes to the Cayman Islands immigration law

After a few false starts, some late changes to provisions, and the recent publication of the supporting regulations, the changes to the Cayman Islands immigration laws, which we expect to be the first of a line of changes in the near future, are coming into force on 1 May 2026.

The government have chosen to amend the existing Immigration (Transition) Act 2022 (“Principal Act”) and rename it the Caymanian Protection Act 2026 (the “Act”), returning to the immigration regime as it was known up until 2003. Two major sets of regulations have been issued with the Act: the Caymanian Protection (Amendment) Regulations, 2026 (the “Regulations”) and the Caymanian Protection (Fees) Regulations, 2026 (the “Fees Regulations”).

We have highlighted some of the general impact changes, as well as the specific impacts upon certain groups below.

It is important to note that, when discussing Caymanian status, a common misconception is that those who are in possession of a Cayman Islands passport, also known as a British Overseas Territory passport, are also Caymanian. This is not necessarily the case. Naturalisation is the process by which one becomes a British Overseas Territory citizen. The right to be Caymanian, and all of the rights and benefits conferred with that status, is a separately acquired right.

Existing Applicants and Certificate Holders

• Any person with a pending application for residency or status that has been submitted before 1 May 2026 will continue to be bound by the existing provisions contained within the Principal Act;

• Any certificate, permit or visa already granted before 1 May 2026 shall continue in force, and under its current conditions, until its expiration date, loss or cancellation;

• The new longer qualification periods for Caymanian status (see ‘Those on the road to Caymanian Status’ below) will not apply to those who already have submitted an application for, or currently hold, any category of Permanent Residence, RERC (or dependents) or British Overseas Territories Citizenship, prior to 1 May 2026.

Permanent Residence (“PR”) Applicants

• The spouse or civil partner of a person who holds PR on the basis of being legally and ordinarily resident in the Islands for at least 8 years (“PR by Points”) may still apply for a Residency and Employment Rights Certificate (“RERC”) but will now be required to provide evidence of the stability of the marriage/civil partnership. The grant of RERC will only be valid for a period of 15 years (reduced from an indefinite grant under the Principal Act). The spouse or civil partner may then reapply for an indefinite RERC, no sooner than one year prior to the expiry of the initial 15-year period.

• The new regime does not propose any changes to the current points system for applications for PR by Points at this time, although the Government has stated that this is upcoming on its agenda.

• Certificates of Permanent Residence for Persons of Independent Means (“PIM Certificate”) – the issue fee has been increased to $200,000 (increased from $100,000). The PIM Certificate will now only be granted for an initial period of 10 years (reduced from an indefinite grant under the Principal Act). The holder of a PIM Certificate may then apply, prior to the end of the 10 years, for the PIM Certificate to be renewed indefinitely, accompanied by the required “prescribed fee”. The Fees Regulations do not provide any fee for the indefinite renewal so we can only presume another $500 application fee would be payable for the renewal. The term “developed real estate”, for the purposes of investment, has now been defined to mean one strata lot or one parcel or one contiguous set of parcels. This change would, on the face of it, appear to prevent applicants using multiple properties to satisfy the investment threshold and instead require them to invest in one high-value property. The new regime has not increased the property value threshold from $2 million, but the Government has indicated that this is under review.

Permanent Residence Holders

• Annual declarations and annual fees for all PR holders will now be due on the anniversary of the grant of PR. This also includes the spouse/civil partner of a PR holder and the spouse/civil partner of a Caymanian.

RERC Applicants

• Where an RERC is granted on the basis of marriage/civil partnership to a Caymanian or a Permanent Resident, and the marriage/partnership ends or breaks down within 15 years, WORC may revoke the RERC, at its discretion. The RERC holder may apply for a grant of permanent residency in their own right under the points system, within 3 months of the revocation.

• Surviving spouses/partners of Caymanians will have their RERC revoked if the marriage/union subsisted for less than 7 years, but they may apply to the Director of WORC within 3 months of that revocation for the right to reside permanently. Alternatively, if the surviving spouse/partner meets the relevant requirements, they may apply for residence under PR by Points.

• A person who is granted PR on the grounds of residency prior to entering into marriage to, or civil partnership with, a Caymanian, and who applies for, and is granted, an RERC as the spouse or civil partner of a Caymanian, shall, upon the death of the Caymanian spouse or partner, or breakdown of the marriage or partnership, continue to have the right to remain permanently in the Islands if they were married or in a civil partnership for at least 15 years.

• A spouse/civil partner of a Caymanian who applies for and is granted an RERC shall only be granted an RERC for an initial period of 15 years (reduced from an indefinite grant under the Principal Act), and no more than one year prior to the end of the 15-year period, that spouse or civil partner may apply for their RERC to be granted indefinitely.

Applicants with Dependants

The Regulations introduce new financial standing requirements for the following applicants who wish to include dependents on their applications: s. 20(3) – those requesting permission to remain in the Islands who are awaiting the decision of an appeal; s. 28(8)(d) – those applying for Caymanian status as the surviving spouse of a Caymanian; s. 38(3)(g) – those applying for an RERC as the spouse or civil partner of a Caymanian; s. 40(2A)(a) – those applying for a continuation of an RERC on the basis of having a Caymanian child; s. 40(3)(b)(iv) – those applying for a continuation of an RERC on the basis of being the surviving spouse or civil partner of a Caymanian; and s. 58(3)(d) – those applying for a work permit. The applicant (and their spouse or civil partner where applicable) must have a monthly income of at least CI$5,000 for one dependant, then an additional monthly income of at least CI$1,000 for each additional dependant.

Those required to make Annual Declarations

The Act now requires annual declarations for those granted residency under the following categories: 28(6A) – those granted the right to be Caymanian by marriage, for the first 7 years following grant; 37(12) – those granted permanent residence following 8 years of residence (the points system), or either of the independent means; 38(10) – the spouse or civil partner of a Caymanian; 40(1D) – those who are granted residence under the points system following the loss of an RERC; and 50(10) – those who are granted residence by way of substantial business presence. The annual declarations must follow the form specified for each particular category. Each form is set out in full at Schedule 5 of the Regulations and it is the obligation of each person to monitor their own anniversary date to file the declarations. A failure to file the declarations on time, with the relevant fee, can lead to loss of the residency status.

Work Permits – Employers and Applicants

The Two Year Rule

• Work permit holders may not change their employer within the first 2 years of the grant of a permit.

• This rule does not apply to domestic helpers changing employer, or government employees who are moved between ministries or portfolios.

• If a work permit holder wishes to change their employer within the first 2 years, they must leave the Islands for no less than 1 year before they can apply for a new work permit, unless an exemption is obtained from the Director of WORC. The Regulations specify that exemptions can be granted in cases of mistreatment of workers by employers, such as not being paid for overtime, being required to perform work outside the job description of the employee on a regular basis, discrimination, victimisation, redundancy of the position, or any other circumstances in which the Director of WORC believes justifies an exemption. Any request for an exemption must be supported by written evidence of the ground claimed (such as a DLP or RCIPS complaint filing), and must be submitted within three working days of the cessation of employment.

• Our interpretation of this provision is that it would apply to any work permit granted to a new employer, so if a permit holder completed their initial 2 years, then moved employers, the first permit under that new employer would also contain a new 2-year restriction. However, Wesley Howell, chief officer in the Ministry of Immigration and Caymanian Employment, speaking on Radio Cayman’s ‘For the Record’ on 20 April, and reported by the Cayman Compass on 21 April, confirmed that the regulations apply only to non-Caymanian workers on their first work permits during their first two years on island, and that the two-year rule would not apply to subsequent permits.

• It appears that the Act does not preclude permit holders from applying to vary their permits within the first 2 years, so long as they remain with the same employer. This seems to allow for promotion or position changes with the same employer for permit holders.

Advertising –

• Job vacancies must be posted on the electronic WORC portal for a minimum of 21 days, increased from the current 14 days . The Act permits a fee to be charged for this posting, but the Fees Regulations confirm this fee will be initially nil. It is important to note that if an employer is looking to renew a work permit of a current employee, the position of that employee is considered to be vacant and advertisement for that position is still required.

• Job vacancies must also be advertised in a local newspaper/media for 21 days.

• Express Fees - A new concept of express fees for annual work permits has been created. The Fee Regulations confirm that an express work permit application fee must be determined within 14 business days. The fees for an express annual work permit are on a sliding scale, based on the annual permit fee amount, between $150 - $300. A power to waive fees for applications and expediting is provided for, if regulations are published confirming how that may be granted, but this has not been included in the Regulations for now.

Civil Servants

• The Act introduces a term limit of 9 years for non-Caymanian civil servants. This brings non-Caymanian civil servants in line with all other non-Caymanian workers with a term limit and many of the same provisions will now apply for non-Caymanian civil servants, their spouses/civil partners and dependents as they do currently to workers on a work permit.

• The term limit clock starts for existing non-Caymanian civil servants, who are non-Caymanian civil servants prior to the commencement of the Public Service Management (Amendment) Act 2025, at the date of the commencement of the Public Service Management (Amendment) Act 2025.

• Note the Public Service Management (Amendment) Act 2025 is not yet in force.

• The period of “rollover” for civil servants will be the same as work permit holders – they must either leave the islands for not less than one year before becoming eligible to work in the Cayman Islands again, or apply for permanent residence.

Caymanian as of right

A new category of “Caymanian as of right” has been added, granting a person who was born in the Cayman Islands on or before 26 March 1977 the right to Caymanian status. We are yet to see the impact of this change, but there is a possible consequential effect of this creating additional Caymanians, whose children would then acquire a subsequent right to Caymanian status if they were born on or after 1 January 2004 outside the Islands where one of the parents was Caymanian otherwise than by descent (i.e. the children of those acquiring status under the new provision may well then acquire that right).

Those on the road to Caymanian Status

• The time to become eligible to apply for Caymanian status on the grounds of residency will increase from either:

(i) 15 years to 20 years of legal and ordinary residence; or

(ii) 5 years to 10 years after the date of grant of Naturalisation.

• The time to become eligible to apply for Caymanian status (i) on the grounds of marriage/civil partnership with a Caymanian; or (ii) following the death of a Caymanian spouse/civil partner; will increase from 7 years to 15 years of marriage/civil partnership, and will be subject to a stipulation that the spouse/partner cannot be separated or living apart for an aggregate period of 3 months or more over a period of 15 years. This change does not impact those who are married prior to the date of the passing of the Act. Note that if the marriage/union has not reached the requisite timescale, the spouse/partner may apply instead for the right to reside permanently, with a right to work and the Director of WORC shall be required to consider a number of factors such as the length of the marriage/union and whether there are any children.

• Those who are Caymanian by Entitlement (i.e. those who are children of a Caymanian, under the age of 18, and legally and ordinarily resident in the Islands for a period of not less than one year) will be vulnerable to revocation of status should they reside off island for a period of 5 years upon turning 18 years old.

• The Act will not impact the eligibility for legal residents to apply for Naturalisation as this is governed under the provisions of the British Nationality Act.

• The Act introduces a new requirement for a person granted Caymanian Status on the basis of marriage/civil partnership to a Caymanian to make annual declarations to WORC for the first 7 years after the grant. Failure to comply with this is an offence and a ground for revocation of the right to be Caymanian.

Fees

The schedules of fees have been removed from the Regulations and published as a new set of regulations entitled the Caymanian Protection (Fees) Regulations, 2026 (the “Fee Regulations”). Whilst there are several incremental increases in fees across the board relating to application fees, some particular changes of note are:

The Future: Final Thoughts

The new regime has focused mainly on the protection of the Caymanian status and the acquisition of it by lengthening time periods to qualify and targeting marriages of convenience. There is also a clear intention to make the work permit regime stricter, and to further encourage employers to employ Caymanians. Though the Act proposes some seemingly stark changes to the current status quo, it does appear to contemplate the interests of those already legally and ordinarily resident in the Islands and provides for transitional circumstances which will minimise the impact of the changes provided for on those individuals.

If you have any questions or queries about anything relating to Cayman Islands immigration, contact our team at info@beauforts.com and we will be pleased to assist.

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