An Introduction to Jersey Residence

The Channel Islands, including Jersey and Guernsey, are situated about 14 miles from the coast of France and 120 miles from Southampton, England.

The island of Jersey is not only known for its scenic beauty, but it also enjoys a high standard of living and offers a variety of options for leisure, cuisine, 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.

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 residence regime

From a tax perspective, Jersey is popular for its low rate of income tax and lack of estate duties. The application procedures for residence in Jersey are extremely efficient and the entire application process can usually be completed in as little as one month unless additional information is required.

The purchase and occupation of all residential real estate in Jersey is controlled by the Jersey government, through its housing committee. Essentially, only persons possessing Jersey housing qualifications are granted consent to purchase property.

It is possible, however, for high-net-worth individuals to obtain the 2(1)E license, which derives its name from Jersey’s current housing law.

To achieve high-value residence 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 GBP 250,000, calculated on a sliding scale based on 20% of the first GBP 1.25 million 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 GBP 250,000 in tax revenues for the island.

Once high-value residence status has been granted, the applicant may apply for consent to purchase a property and will be granted the same status as other residents on the island. Residents can be employed, employ others, set up their own businesses on the island, and are expected to purchase or lease a single residential property worth more than GBP 1.75 million for an apartment and GBP 3.5 million for a house.

The regulations for citizenship are the same as in the UK, and the British Government is responsible for administering the laws covering British citizenship through the British Nationality Act 1981, which also applies to Jersey.

An International Finance Center

Jersey's successful role as an international financial center 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 for 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 is professionally trained and work in the finance and support industries. The availability of internationally recognized 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 recognized financial center with a reputation for excellence in quality and expertise. The island's location enhances its position as a finance center with easy accessibility to the UK and mainland Europe, while its judicial independence and self-governance make it attractive to businesses and investors. The communication facilities in Jersey are of a high standard, with efficient international telecommunication, information technology, and 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.