Residence in Jersey
Jersey - a desirable location
The Channel Islands, including Jersey and Guernsey, are situated about 14 miles from the coast of France and 120 miles from Southampton, England. A modern airport and an advantageous location enable Jersey to benefit from frequent and regular air services to London, Paris, Zurich and other airports in the United Kingdom, France, the other Channel Islands and Ireland, with regular sea travel to England and France.
The island of Jersey is not only known for its scenic beauty; it also enjoys a high European standard of living and offers a variety of options for leisure, eating-out and cultural activities. It is a paradise for golfing enthusiasts and people interested in water-sports. Residents also benefit from a high level of modern communication and associated facilities.
Shopping is a pleasure in Jersey. Many electronic, clothing and cosmetic products are about 20% cheaper here than in other countries in Europe due to Jersey's taxation policy - there is a low 5% Goods and Services Tax in Jersey compared to much higher Value Added Tax rates in Europe.
All financial institutions are regulated and supervised in Jersey by the Government's Finance and Economics Committee. Supervision is implemented by the Jersey Financial Services Commission which exerts close control over all financial institutions and trust companies.
High-Value Residency Regime
The purchase and occupation of all residential real estate in Jersey are controlled by the Jersey Government, through its Housing Committee. Fundamentally, only persons possessing Jersey Housing qualifications are granted consent to purchase a property.
It is possible, however, for high net worth individuals to obtain a licence, namely 2(1)E, which derives its name from Jersey’s current housing law.
To achieve High Value Residency status and be eligible to purchase property in Jersey the prospective applicant must make a major contribution to the Island’s tax revenues; at the present rates of tax, the annual tax contribution would be in the region of £125,000, calculated on a sliding scale based on 20% of the first £625,000 of worldwide income and 1% on all income thereafter. Applicants are required to provide financial and other information in support of their application to take up residence in Jersey, evidencing sufficient capital wealth in order to produce in excess of £125,000 in tax revenues for the Island.
Once High-Value Residency status has been granted, the applicant may apply for consent to purchase a property and will be granted the same status as other residentially qualified Islanders. They can be employed and employ and set up their own business on the Island and will be expected to purchase a single residential property worth in excess of £1m.
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Technically, Jersey is a low tax area, not a tax haven, and derives its income principally from income tax, excise and duties. No taxes are levied upon capital, capital gains, inheritances, gifts, sales or turnover; nor are there any estate duties.
Though income tax is levied on the worldwide income of a resident, there exist opportunities whereby a new resident may limit his future exposure to income tax by the creation of non-Jersey trusts with the approval of the Jersey Government. Thereby, part of the applicant's income may be protected from Jersey tax charge, leaving sufficient income to meet the required Jersey tax liability in respect of which the applicant will be required to give the undertaking to satisfy.
The island of Jersey benefits from a unique constitutional relationship with the United Kingdom and a negotiated special arrangement with the European Union, by which Jersey has retained its right to internal self-government and fiscal autonomy. Particularly, Jersey reserves the exclusive right to legislate on matters of purely domestic concern, which includes its own taxation, and it is not required now or in the future to adopt the fiscal policies of either the United Kingdom or the European Union.
Jersey has a long history of political and economic stability and follows a conservative political system. The sources for its prosperity are Jersey's finance centre activities, the receipt of investment income from abroad by immigrants attracted to the Island by its tax advantages, tourism and, to a lesser degree, agriculture and light industry. The sources of revenue, which meet the income requirements of the Island, are sufficient to generate regular budget surpluses without the need to raise the standard rate of income tax, which has remained at 20% since 1940.
Before contracting the purchase of a prospective property, it is recommended that a prospective resident should first obtain approval in principle from the Jersey authorities to his taking up residence. We are experienced and able to assist in this matter. To find out more about your possibilities to acquire resident status and to acquire substantial real estate in Jersey, complete our form for a consultation today.
Tax and Business in Jersey
The island's government has indicated a strong commitment to maintaining the attractiveness of the Jersey tax regime as part of its overall economic strategy.
The standard rate of income tax in Jersey is 20%. This rate is applicable both to individuals and corporate entities, as well as partnerships and branches of overseas companies.
The island has no separate corporation tax code, although Jersey has a 'zero/ten' corporation tax regime. Under 'zero/ten', companies will generally be taxed at 0% and there is a special 10% rate applying to certain regulated financial businesses.
There are no 'wealth' taxes such as capital gains tax or inheritance tax.
Other attractions of the Jersey tax system include generous rules for the taxation of employee share ownership; Social Security payments capped at a low level; no stamp duty on equity transactions; and an excellent working relationship between the Finance Industry and the Tax Office which promotes openness and economic growth.
Jersey - the International Financial Centre
Jersey's successful role as an international financial centre for more than 40 years is largely due to its ability to maintain a stable and high-quality business environment, which is an important factor to international investors.
The Jersey Financial Services Commission, an independent body, is responsible for the administration of laws relating to the industry. It is also responsible for the development of the financial services industry on the island. Most of Jersey's working population are professionally trained and work in the finance and support industries. The availability of internationally recognised accountancy and legal experts ensures smooth and professional handling of business.
An increasing number of clients worldwide choose Jersey as a preferred location mainly because it has retained a reputation for its integrity while evolving to cater to the growing needs of global finance.
A Business and Investor-friendly Jurisdiction
Jersey is an internationally recognised financial centre with a reputation for its excellence in quality and expertise. The island's location enhances its position as a finance centre with easy accessibility to the UK and mainland Europe, while its judicial independence and self-government make it attractive to businesses and investors. The communication facilities in Jersey are of a high standard with efficient international telecommunication, information technology, postal and courier services. E-business initiatives are also expanding and providing the finance industry with additional support.
Jersey is also a popular host to many different types of association and corporate events from Europe, and many in the pharmaceutical, communication, manufacturing and finance sectors make it their destination of choice.
Facts about Jersey
A Perfect Place for Business and Pleasure
An island which appears small but beats larger ones with its sheer beauty, nostalgic past and picturesque scenery is something that amazes visitors to this popular destination. Jersey, which is only 22km away from the coast of France and 135km from the south of mainland Britain, gives you a perfect location for both business and pleasure. The island, which measures just 118 sq km, is an excellent place to do business and unwind. This winning combination, together with its many amenities, makes it attractive to both tourists as well as business people. Jersey has a population of 87,700 out of which 12,000 are professionally trained staff working within finance and support industries.
A jewel of an island, Jersey has kept its sparkle by maintaining its unique heritage despite the winds of change. It is steeped in a wealth of heritage, tradition and culture that has shaped the island into the dynamic destination it is today. The island has proudly faced many challenges in the past and continues to seek opportunities. English is the main language but many European languages are also spoken here due to its cosmopolitan nature.
Jersey's history is fascinating and complex. The influences of both Britain and France are greatly felt on this island which started its independent existence 800 years ago. Jersey was a French territory until 1066 after which the Channel Islands chose allegiance to the British Crown and it has since remained a loyal British Crown Dependency. It is thus not surprising to find many places with French names and a second 'Jersey-French' language. Jersey experienced a growing number of English speaking families in the island after the French Revolution and the Napoleonic Wars. It became one of Britain's major sailing shipbuilding businesses and launched over 900 vessels.
<p">The Channel Islands were the only part of the British Isles to be occupied by German forces during the Second World War. Many fortifications remain and now prove popular with international historians and visitors. On 9 May 1945, the islands were liberated and their economy and prosperity grew. Agriculture became increasingly important while tourism grew rapidly and remains one of the main sectors next to Jersey's tremendous success as an international financial centre. Jersey's rich history and culture have moulded it into a cosmopolitan and sophisticated society open to all opportunities and challenges.
Jersey enjoys certain rights and privileges for its loyalty to the British Crown and among them was becoming self-governing.
Jersey's parliament is called the States and is one of the oldest legislatures. The States comprises the Bailiff (President of the Assembly), the Lieutenant-Governor, 12 Senators, 12 Connétables, 29 Deputies, the Dean of Jersey, the Attorney General and the Solicitor General. Jersey is divided into 12 parishes, all with access to the sea. Each parish is presided over by the elected head of parish, the Connétable, on issues relating to civil matters and by the Rector on issues relating to ecclesiastical affairs.
Jersey is part of the British Isles but has not become a member of the EU.
Jersey's 12 parishes are:
- St Helier
- St Brelade
- St Ouen
- St Martin
- St John
- St Mary
- St Saviour
- St Clement
- St Lawrence
- St Peter
- St Helier, the island's capital
St Helier is the most populous parish and busiest town. The main shopping centre is also located here. It is named after the Island's first and most famous saint who lived and preached in Jersey in the 8th century.
Jersey's economy has evolved from a community traditionally reliant on agriculture, boat building, fishing and knitwear to tourism and finance. The British pound and Jersey pound (valued 1:1) form its retail currency, with all major currencies accepted for financial transactions.
Although the finance industry did not exist before 1962, it now provides 55% of the island's GDP and 60% of government tax income. There are now 55 banks and over 33,000 registered companies in Jersey. The industry is attractive due to Jersey's stable government, proximity to both UK and Europe and the low taxes in Jersey. Since Napoleonic times very rich individuals have been attracted to Jersey's low-income tax. Jersey's Gross National Income (GNI) per capita is amongst the highest in the world. In 2005, Jersey's GNI was £3.2 billion. The financial services sector (banking, trust and fund administration and management, accountancy and legal activities) now accounts for just over half of all economic activity in Jersey and employs almost a quarter of the workforce. For more details see Jersey - The International Finance Centre.
Tourism contributes about 25% of the island's GDP with a total of 752,000 visitors in 2005, spending about £220 million. The tourism sector contributes about £10 million in direct tax revenue and supports 7,250 jobs. The largest groups of visitors come from the UK and it is also a popular destination for those from Germany, France and the other Channel Islands. Jersey offers an array of world-class hotels with excellent facilities, a variety of restaurants and bars and a lively nightlife. There are about 160 registered establishments providing accommodation of 11,967 bed spaces and 4 campsites that can provide for 1,250 persons.
Jersey's agricultural industry began to flourish with the development of the Jersey cow and the Jersey Royal New Potato. The Jersey cow evolved by selective breeding during the first half of the 19th century and a steady export business grew as a result of international recognition of the quality of the breed. The Jersey cow is an important part of Jersey's living heritage and is the trademark of the skill of cattle breeders down the centuries. In 1879, Hugh de la Haye grew the first Jersey Royal New Potato and within 10 years, over 65,000 tons were shipped out to the English market. Today agriculture provides 5% of the island's GDP. Major exports include a range of dairy products associated with the Jersey cow, Jersey Royal potatoes, a wide range of market garden crops and flowers.
Education is of paramount importance to Jersey's government and the people of Jersey. The education system in Jersey is of a very high standard and is based on the UK's national curriculum. The Education Department provides education to some 10,500 school children. There are 23 primary schools (including 10 nursery units), five secondary schools and a choice of private schools as well. There are no universities in Jersey and so pupils must continue their higher education in the UK or elsewhere. However, further education is provided within the island at Highlands College of Further Education which offers a wide variety of academic and vocational courses and adult education courses.
Some additional Interesting Facts
- There are many historic sites including war tunnels and forts built to keep out the French and to house the British Garrison during the Napoleonic wars
- Dolmen du Faldouet, an unusual 'passage' grave, can be found here
- The world's largest steam clock which stands in St Helier's entered the record books in 1997
- La Hougue Bie, a Neolithic burial chamber made of earth, limpet shells and rubble was built here about 3,000 BC
- Since 1827 the Giant Cabbage, which grows up to 3m tall, has been cultivated on this island
- La Cotte de St Brelade is one of the most important Paleolithic sites in Europe
- Remnants of a great French forest that existed over 10,000 years ago, when Jersey was part of the continent, can be seen at St Ouen during a low tide
- Due to its unique position in the Bay of St Malo, the island grows and shrinks twice a day and produces one of the highest tidal ranges in the world
- Jersey's vineyard produces three varieties of wine
- It is renowned for its pottery in the making of ceramic tableware and decorative pieces
- A unique exhibition of plants, "The Royal Family of Plants", in a series of glasshouses can be seen here
- It is sanctuary to a remarkable collection of exotic creatures, some of which can only be found in Jersey at a unique conservation and breeding centre
- An interesting coastal landscape with wooded valleys, rolling dunes, towering cliffs and hidden caves are part of this nature island
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