Jersey is nestled in the English Channel, just 14 miles from the French coast and 85 miles south of the English coast. Although compact in size (at roughly nine miles by five miles), it is the largest of the Channel Islands and is, quite rightly, extremely proud of everything it packs into its square footage - 50 miles of unspoiled beaches and rugged coastal cliff paths as well as peaceful countryside, historic sites, a vibrant town centre and, of course, a top tier offshore international finance industry.
Jersey has long welcomed individuals and families looking to relocate to the island, often with their businesses. Traditionally, a key attraction may have been Jersey's favourable tax treatment, as it enjoys full fiscal autonomy. However, today, the low personal and business tax rates are just one of many factors drawing people to Jersey. The lifestyle, frequent travel links to the UK and mainland Europe, excellent schools and healthcare systems, together with a real sense of community, all contribute to Jersey's appeal.
If you are considering relocating to Jersey, we hope this briefing will be a helpful starting point for you. We've summarised the different options for moving here (whether that's under Jersey's high value residency scheme, relocating with your business, or both) and, recognising that the decision to up sticks is not one you'll make lightly, we've also provided an insight to what life is really like "on the rock".
High value residency programme
In 1970, Jersey first introduced a special tax regime for high value residents. Today, this process is governed by the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013 (the "Regulations"). By Regulation 2(1)(e) of the Regulations, Jersey's Housing Minister has the power to grant entitled residential status to a person if the Housing and Work Advisory Group is satisfied that such grant is justified on social or economic grounds, or both, and is in the best interests of the community. Having entitled residential status gives full access to the housing market and offers the greatest flexibility in terms of employment.
The high value residency programme is not a citizenship by investment scheme and only a select number of high value residency consents are granted each year. Each case is considered on its own merits and on the basis of the economic and social benefits which the applicant would bring to the island.
Those approved under the high value residency programme are able to access a specific rate of tax of 20% on the first £1.25 million of worldwide income and then 1% on any worldwide income above this level, subject to certain restrictions.
To be eligible to apply for the high value residency programme, you must be able to demonstrate:
- the ability to generate an annual minimum tax contribution of £250,000;
- comfortable and sustainable annual worldwide income in excess of £1.25 million per annum (or the ability to draw such a level of income); and
- personal wealth of more than £10 million in assets (excluding main residence and noting that an element of liquidity is expected).
In addition, other social and economic factors will also be taken into consideration when assessing high value residency applications. These factors will include your general lifestyle and family circumstances, positive and negative media coverage, past charitable pursuits, skills or cultural interests which have benefited a local community and could benefit Jersey, and your intentions for business activity in Jersey (including potential for future local employment, training, diversification, etc).
If your application is successful, you may buy or lease a property in Jersey as your main place of residence on the island. Jersey's Population Office may require you to buy or lease a high value property (generally a house or apartment with a value in excess of £3.5 million or £1.75 million respectively). If you would prefer to lease initially, there is an expectation that you will purchase a high value property within a year or so.
Moving with your business
If you are interested in moving to Jersey with your business, we can assist with preparing the necessary business licence application, which is submitted to the Housing and Work Advisory Group. This application will provide details of the business (what it does/will do, any prior trading, reasons for relocating to Jersey) as well as details of your experience and qualifications. The application should also include three-year projections of staffing and anticipated revenue.
The Housing and Work Advisory Group will consider the local benefit of you bringing your business to Jersey.
We will also seek a licenced permission from Jersey's housing and work authorities to allow you to live, purchase property and work in Jersey. If your family is also moving to Jersey with you, we can also apply for licences for them to allow them to reside and work in Jersey should they wish.
Tax
Jersey is a low tax jurisdiction, offering some of the lowest tax rates in Europe, including:
- low personal tax rates for individuals (maximum of 20%);
- a special income tax rate for those from the high value residency programme (see above);
- no capital gains tax;
- no inheritance tax;
- 5% Goods and Service Tax, no VAT; and
- a general rate of 0% applied for corporate income tax, with certain exceptions:
- a rate of 10% applies to Jersey financial services companies;
- a rate of 20% applies to utility companies, companies involved in oil importation and quarrying, and income received from Jersey properties (such as property development and property rental); and
- for large retailers in Jersey (which have 60% of their trading turnover from retail sales to customers in Jersey and have retail turnover of £2 million and above): 0% where profits are less than £500,000; a sliding scale from 0% to 20% where profits are between £500,000 and £750,000; and 20% where profits are £750,000 or more.
Jersey's lifestyle
Jersey is regularly crowned the sunniest place in the British Isles and offers warm summers and mild winters.
There are plenty of activities on offer and, as you might expect, many of these involve being out on the water. You might fancy learning to surf, sail, paddleboard or joining our fleet of brave year-round sea swimmers. For something a bit different, you can also head out on a rib trip to the Ecrehous or the Minquiers and, with a bit of luck, you'll see some dolphins on the way.
Back on dry land, there are three excellent golf courses and lots of cycling clubs and trail running groups, as well as yoga and pilates studios. For football and rugby fanatics, we have the Jersey Bulls and the Jersey RFC. The netball leagues are also popular.
Jersey has some excellent local produce. You may have already heard about our Jersey royals, Jersey wonders, bean crock and dairy products from our famous Jersey cows. We also have outstanding seafood, including oysters (which are particularly special due to the island's huge tidal range and clean seawater), all of which is showcased in our plentiful restaurants.
If fine dining is your thing, there are plenty of excellent options (including several Michelin rated restaurants and currently one with a Michelin star) and, for those moments where you just want a bacon roll or a fish finger sandwich by the beach, Jersey really does come into its own.
The island also enjoys a thriving arts scene. There's the Ballet d'Jèrri, Jersey Opera House and Jersey Arts Centre, which all have regular performances. We also have music and comedy festivals and performances throughout the year and local artists showcase their work at various art galleries across the island.
There are also lots of interesting historic sites (including three castles!), museums and cultural attractions where you can immerse yourself in Jersey's rich history.
Practical considerations for you and your family
If you're considering moving to Jersey, you'll be pleased to know that:
- the island is reassuringly close to the UK, with regular flights to both London and regional airports and fast ferry links to both the UK and nearby France;
- Jersey is in the same time zone as the UK, which is perfect for business, meaning you can deal with Singapore and New York in the same working day;
- the island has an excellent education system, with a mix of public and private schools and its own college of further and higher education;
- healthcare on the island is of a high standard and GP appointments are never hard to get;
- the island is a very safe place to live, with a low crime rate;
- Jersey has an independent and stable government;
- there is a strong sense of community on the island; and
- the island has a well-maintained infrastructure.
Jersey's culture and community
Reflecting Jersey's historic ties to Normandy and proximity to France, the island's traditions and language have been significantly influenced by French culture.
Jersey enjoys a multicultural community. At the time of the last census in 2021, roughly 50% of the population were born in Jersey, 29% were born elsewhere in the British Isles and 15% were born in other European countries (including Portugal, Madeira, Ireland, Poland and Romania).
The island is also home to a range of religious communities.
Jersey's governance/judiciary
Jersey sits outside of the United Kingdom and the European Union.
As a Crown Dependency, the head of state of Jersey is the British monarch (King Charles III), whose traditional title in Jersey is the Duke of Normandy. The Lieutenant Governor is His Majesty's personal representative in Jersey. He serves as the de facto head of state in Jersey, performing various ceremonial functions and liaising between Jersey and the UK government. The Lieutenant Governor resides in Government House, which is also the official residence of His Majesty when visiting Jersey.
Jersey operates under a unique system of governance. The island's legislature, known as the States Assembly, is responsible for enacting laws and is composed of elected representatives, including senators, deputies and connétables from the island's 12 parishes. The Bailiff of Jersey presides over both the States Assembly and the Royal Court, which is the island's principal court, with jurisdiction over both civil and criminal matters. Individual trials may be heard by the Bailiff, the Deputy Bailiff or a commissioner, supported by volunteer Jurats. The Judicial Greffier performs the role of clerk of the Royal Court.
How we can help you
If you are interested in the high value residency programme or moving to Jersey with your business, get in touch with us to discuss this further.
Our aim is to make the process as straightforward as possible for you. Working closely with your tax advisor, we can prepare the applications for you and liaise directly with Locate Jersey, which presents the applications to the Housing and Work Advisory Group. Having the right team in place, each bringing their own areas of expertise and experience, will make all the difference.
As a full-service law firm, we can assist you with all your legal needs for your relocation and beyond:
- our property team can assist you with the purchase of a property in Jersey;
- if you're bringing your business to Jersey too, we can advise you on all commercial and regulatory matters, including economic substance advice, the incorporation of Jersey entities and the application for necessary licences from the Jersey Financial Services Commission (JFSC) and housing and work authorities; and
- our international private client team can assist with your estate planning (including wills and lasting powers of attorney).
We are also very happy to introduce you to other key advisors on the island, from tax specialists to banking and investment managers, as required.
