Jersey Overview
Jersey is the largest of the Channel Islands, which are situated in the English Channel just a few miles from the French coast. The Channel Islands are not part of the United Kingdom but are a part of the British Isles which gives them a unique constitutional link, one that offers complete financial and fiscal independence. Jersey is neither represented in the United Kingdom Parliament nor involved with, or subject to, the judicial and administrative systems of the United Kingdom.
Jersey – A tradition of Excellence in Financial Services
The Channel Islands have a sophisticated financial and trust industry, which in Jersey represents 43% of the island’s economy and employs over 10,000 people – 20% of the island’s workforce. Jersey welcomes quality business from clients all over the world but maintains strict safeguards in order to protect its excellent reputation. Recent legislation has been introduced to further reinforce Jersey’s position.
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.
Jersey has one of the world’s most sophisticated trust services industries and a long tradition of excellence in this sector. Particularly for the administration of trusts and international corporate structures, Jersey has certain advantages over most other jurisdictions, namely the following:
- A long tradition of economic and political stability
- Excellent reputation for integrity, quality and expertise
- Well-regulated and mature finance and trust industry
- Major banking centre
- Convenient location in Western Europe
Residence in Jersey
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 enables 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.
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
The purchase and occupation of all residential real estate in Jersey is controlled by the Jersey Government, through its Housing Committee. Fundamentally, only persons possessing Jersey Housing qualifications are granted consent to purchase 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 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 in the region of GBP 125,000, calculated on a sliding scale based on 20% of the first GBP 625,000 of world wide 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 125,000 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 residentially qualified Islanders. They can be employed and employ and set up their own business in the Island and will be expected to purchase or lease a single residential property worth in excess of GBP 1.75m.