For high net worth individuals considering a relocation, there
are a number of factors that will be weighed up in making a choice
which is right for both the head and the heart. To be a serious
contender, a jurisdiction must certainly be fiscally friendly. But
it must also be somewhere offering a high quality of life, where
one can seriously considering setting up home with one's family
whilst at the same time being able to travel easily for business
and leisure purposes.
Jersey's advantages in this regard are, of course, well
known to those of us who live and work here: low tax rates; a
stable and pro-business political environment; stunning coastline
and other natural beauty; low rates of crime; high quality public
services; good travel links; a local community which has retained
much of value from its past, including a strong tradition of
honorary service, but which is at the same time cosmopolitan in
These advantages are being communicated in an increasingly
focused and sophisticated manner to potential high value residents,
with Locate Jersey's promotional activities being complemented
by private sector initiatives. A recent example of involvement from
Locate Jersey and the private sector is the Jersey feature produced
by Country Life magazine, featuring contributions from Locate
Jersey, six Jersey estate agents, local businesses and professional
The legal framework for applications for high value residency
status is provided by the Control of Housing and Work (Jersey) Law
2012 (the 2012 Law), the statute which generally
controls entitlement to work in Jersey and to buy and occupy
residential property. Like its predecessor, the Housing (Jersey)
Law 1949, the 2012 Law recognises the benefit to the island of high
value residents and allows the Chief Minister to grant entitled
status where satisfied that this is justified "on social or
economic grounds or both, and as being in the best interests of the
This requires applicants to show that they will be able to
contribute at least £125,000 per year in personal income tax
payments and that they have sustainable annual worldwide income
comfortably in excess of £625,000 per year. Under the special
regime for high value residents under the Income Tax (Jersey) Law
1964, such residents are taxed at 20% on the first £625,000
of worldwide income and 1% on other worldwide income.
Applicants for high value resident status must also show that
their residency in Jersey will benefit the island in some way.
Factors which may be taken into account include:
voluntary work or business
contribution to the local community;
training or sporting initiatives
particularly aimed at youth or educational organisations;
actual or potential media coverage of
any activities that involve their business or social life;
cultural interests or skills that
have benefited a local community which could benefit Jersey;
general lifestyle and family
circumstances, including past charitable work and
Conversely, any clearly undesirable factors in applicants'
backgrounds, such as criminal records, or adverse media coverage,
may work against a successful application.
The Minister will also wish to know of applicants' plans for
further business activities in Jersey, future local employment,
training, diversification and any potential resultant increased tax
In addition to pre-application advice and assistance, Locate
Jersey play a central role in the application process, assisting
with the preparation of the documentation required for the
application dossier and undertaking due diligence, and liaising
with the Comptroller of Taxes and the Population Office, in
relation to submitted applications.
Successful applicants will be granted 'entitled' status
for the purposes of the 2012 Law and may buy or lease property in
Jersey as their main place of residence in the island. It will
usually be necessary for the property to be valued in excess of
£1.75 million or, in the case of apartments, to have been
designated as a '1(1)(k) Category' apartment under the
Housing (Jersey) Law 1949. The object of this requirement is to
ensure that high value residents do not compete for housing with
the vast majority of the local population.
The past few years have seen a significant increase in interest
in relocating to Jersey and in successful applications for high
value resident status, with many such newcomers bringing their
businesses with them. This is testimony not only to the fundamental
attributes of the island for fiscal purposes and as a place to live
and do business but also to the efforts of Locate Jersey and the
business community generally in spreading the word that the island
is well and truly open for business.
Article first published in Business Brief, Issue 321,
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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