Cayman Immigration: There May be Trouble Ahead

As the government prepares for a commencement date of 1 March 2026 for the Immigration (Transition) (Amendment and Validation) Act 2025 (“the Amendment Act”), it is becoming increasingly obvious that there will be a large number of individuals adversely affected by the changes.

Perhaps most surprisingly, either by design or implication the Government has introduced a two-tier Permanent Residence system, in which a number of individuals including children will be adversely affected.

The recent Amendment Act introduces new transitional provisions under what is to become Section 83A of the Caymanian Protection Act, designed to address the status of permanent residents (PRs) under the revised immigration framework. The Transitional Provisions protect a limited group of Permanent Residents. This group will be able to apply for the Right to be Caymanian after 15 years of residence (provided they are Naturalised / Registered as a BOTC) or 5 years after Registration / Naturalisation (“Tier 1”). A close review indicates that they may inadvertently exclude several longstanding categories of lawful permanent residents, which will mean that they are not protected (“Tier 2”).

What is not clear is why the Government has decided to include some groups of Permanent Residents and not include other Permanent Residents, hence what appears to be a two tier system.

Which Permanent Residents are Protected – Tier 1

Section 83A(4) and (5) of the Amendment Act provides that the new timeline to apply for the Right to be Caymanian (RTBC) will not apply to the following categories of individuals provided they hold the relevant permission on the day of grant:

• Individuals granted permanent residence after at least eight years’ lawful and ordinary residence;
• Spouses or civil partners of Caymanians or PR holders holding a Residency and Employment Rights Certificate (RERC) by virtue of marriage or civil partnership;
• Holders of a Certificate of Permanent Residence for Persons of Independent Means (PIM); and
• Spouses, civil partners, and dependents of PIM certificate holders. Provided they are British Overseas Territories Citizens

These categories form a closed list, leaving a gap for long-term residents who do not fall neatly within the above categories.

Which Permanent Residents are not protected – Tier 2

The provisions exclude several long-term lawful permanent residents, including:

• RERC holders granted under section 39 of the current Immigration Act;
• Children registered as BOTCs under sections 15(1) or 15(4) of the British Nationality Act, who are BOTCs by entitlement and have independent permanent residence under section 36(4);
• Adult dependent relatives listed on another person’s RERC (e.g., parents);
• Spouses of PR holders who are listed as dependents but do not hold an RERC of their own; and
• Refugees granted indefinite leave to remain under the Customs and Border Control Act.

Perhaps the strangest categories to exclude are the children of Permanent Residents who have either been registered by entitlement or hold an RERC in their own right pursuant to Section 39 of the current Act. These children’s immigration permissions are arguably stronger than the children of Certificate holders as a Person of Independent Means but their ability to apply for Caymanian Status after 15 years is not preserved. These individuals with the strongest ties to the Cayman Islands and most integrated are being excluded from the protections of the transitional provisions for a reason which is not clear.

It should be noted that these changes to the Transitional Provisions have changed since they were first made public on the publication of the proposed Bill in October 2025.  The original relevant section stated:

(4) Section 10(a) and (b) of the principal Act as amended by the Immigration (Transition) (Amendment and Validation) Act, 2025 shall not apply to a person in respect of whom a certificate, permission or exemption —

(a) is issued under —

(i) the principal Act;

(ii) the repealed Immigration Act (2015 Revision); or

(iii) any prior immigration law saved by the repealed Immigration Act (2015 Revision); and (b) is in force at the date of the commencement of the Immigration (Transition) (Amendment and Validation) Act, 2025,

and such a person may apply in accordance with the relevant Act under which the person’s certificate, permission or exemption is issued for the grant of the right to be Caymanian under section 28(3) or (4) of the principal Act or under any other earlier analogous provision.

This section as originally drafted “grandfathered” in a wide group of people. On 8 December 2025, the Government published amendments to the Bill, and the new law (coming into effect on 1 March 2026) states:

(4) Section 28(3) and (4) of the principal Act as amended by section 10(a) and (b) of the Immigration (Transition) (Amendment and Validation) Act, 2025 shall not apply to a person referred to in subsection (5) —

(a) who has been granted the right to reside permanently in the Islands, or whose Certificate has been issued, under —

(i) the principal Act;

(ii) the repealed Immigration Act (2015 Revision); or (iii) any prior immigration law saved by the repealed Immigration Act (2015 Revision); and

(b) whose right to reside permanently in the Islands or whose Certificate is in force at the date of the commencement of section 10(a) and (b) of the Immigration (Transition) (Amendment and Validation) Act, 2025.

(5) For the purposes of subsection (4), the persons are as follows —

(a) a person who has been granted the right to reside permanently in the Islands after having been legally and ordinarily resident in the Islands for a period of at least eight years other than a person referred to in section 37(1)(a), (b), (c), or (d) of the principal Act;

(b) a spouse or civil partner of a Caymanian or permanent resident who is the holder of a Residency and Employment Rights Certificate by virtue of marriage to, or civil partnership with, the Caymanian or permanent resident;

(c) a person who is the holder of a Certificate of Permanent Residence for Persons of Independent Means; and

(d) a spouse or civil partner, and any dependants, of the holder of a Certificate of Permanent Residence for Persons of Independent Means who is the holder of a Certificate of Permanent Residence for Dependants of Persons of Independent Means.

The above section is far more restrictive than the proposed provisions of October 2025. What is most concerning is that from the most recent Cayman Compass Article on this point, dated 16 January 2026, the effect of the transitional provisions was potentially not fully understood by the Ministry.

In an attempt to seek further guidance on the issues, HSM Chambers have recently written to the Director of WORC and the Ministry requesting clarity as to what is to happen to those Permanent Residents who fall within the “second tier” of the Permanent Residence system.

In our view, the commencement of this new legislation should be delayed until the Government can give due consideration to the “Tier 2” issues if the possibility of litigation is to be avoided.