Revenue from work permit fees in the territory is predicted to fall
According to the latest edition of the Compendium of Statistics issued by the Economics and Statistics Office, the Cayman Islands government received $87.3 million dollars in revenue from work permit fees in 2018 which figure is down from $88.9 million in 2017. For each of the eight years prior that that date, revenue had grown consistently.
The fall in work permit revenue appears likely to continue even as the number of work permit holders increases. There may be several reasons for this trend:
- In some instances Caymanians are advancing in their careers and replacing expatriates who are leaving.
- Other expatriates may have found relief from high immigration fees in the Special Economic Zone.
- Some expatriates working for foreign companies with no presence in Cayman may be entitled to work without the need for a permit, as do other expatriates in government service.
- The abolition of term limit exemption permits and a relaxation of the permanent resident requirements mean large numbers of expatriates are becoming Caymanian.
- The fee payable varies by occupation. Teachers are exempt, for labourers it is $550, while accountants pay $13,650 and salaried partners in law firms $32,400.
According to the data, persons working in the financial services industry have generated the most revenue and have also been granted permanent residency in the greatest numbers and are becoming Caymanian. While the number total of work permits may continue to grow, the average fee paid for each work permit is anticipated to fall resulting in an overall reduction in the revenue generated by this stream due to the disparities in the work permit fees as labourers and other non-professional workers take the place of new accountants, bankers, and lawyers from overseas.
