Cayman Islands consider $1 million permanent residency deal

By Danica Coto, Associated Press Writer

SAN JUAN, Puerto Rico — The prime minister of the Cayman Islands has an unprecedented offer for financial industry workers who are really, really rich: You can have permanent residency in exchange for $1 million.

Securing residency would simplify business transactions for those who travel often to the British Caribbean territory, and it could eliminate the need to obtain a Caymanian business partner, said Charles Glidden, the premier's press secretary.

"They can come and go as they like," he said. "They would not have to be on a work permit."

About 80,000 international companies are registered in the Cayman Islands, where the offshore financial services sector represents about half of the territory's economy.

The companies were attracted by low tax rates and a flexible system that allows capital to be moved easily around the world. But as international leaders denounce abuses and seek to collect more tax revenue, many companies are seeking other locations not widely known as tax havens that still offer low-tax jurisdictions.

Caymans authorities are working on legislation to make changes that they hope will head off an exodus, such as speeding up the processing of applications for work permit and shortening the time between work permits that foreigners have to spend out of the territory.

The new residency offer would apply to people with a net worth of more than $10 million.

A limited number of slots would be available, and those who qualified would have to spend a certain amount of time in the islands each year, Prime Minister McKeeva Bush said.

"Ensuring that the Cayman Islands remain a competitive jurisdiction in the global financial services industry is one of this government's key priorities," he said in a statement.

Under current immigration laws, anyone who seeks residency has to take a test and must have lived in the Cayman Islands for eight years, among other measures, the Immigration Department says. Permanent residency allows them to work for any employer.

Charles Glidden, the premier's press secretary, said Wednesday that he did not have further details on the proposal, which requires Cabinet approval before it goes to legislators in two weeks.

The Cayman Islands Fund Administrators Association, which serves as a liaison between the government and the fund management industry, declined to comment on the new proposal.

Opposition leader Kurt Tibbetts said he had to talk about the proposal with other party members before commenting on it.

http://www.usatoday.com/travel/destinat ... deal_N.htm