Jersey’s Residency By Investment For High-Net-Worth Individuals

Jersey is the largest and southernmost of the Channel Islands. Jersey is located in the English Channel, 85 miles from England's south coast and 14 miles from France. It is well accessible for travel by air and water, with a direct flight duration of less than an hour from London. The country is at the core of a global transportation network, with direct flights to key European technological hubs such as London, Dublin, Bristol, Manchester, Cambridge, Berlin, Dusseldorf, and Hamburg.

Jersey provides a beautiful work-life balance due to its relaxing pace of life, gorgeous landscape, clean and fresh air, southerly temperature, and ability to be on the beach minutes after leaving the workplace. There is always something new to discover in Jersey, with its Michelin-starred restaurants, three championship golf courses, an abundance of outdoor sports, and a richness of nature, tradition, and culture. Jersey's official language is English, and the currency is the British Pound Sterling.

While just nine miles by five miles, Jersey still has a diverse property market—from traditional granite rural cottages to elegant modern flats and beachfront villas with fantastic sea views. Jersey's Housing Minister oversees all property purchases and leases and gives permits to High-Value Residents.

Jersey has a comprehensive healthcare system that provides excellent facilities and a very high level of treatment. The island also has health arrangements for some therapies that may need treatment at specialized UK institutions. Currently, funds are being invested in the growth of hospital services, including implementing various Digital Health projects. With all that said, Jersey is an ideal place for investors.

One interesting piece of information about Jersey and the Channel Islands is that they are all self-governing countries; however, they are the property of the British Crown.

Saint Helier, Jersey

JERSEY'S HIGH-VALUE RESIDENCE PROGRAM  

This program enables applicants to relocate to Jersey and set up a residency. You will be granted the same privileges enjoyed by other citizens, such as the freedom to establish a business, seek work, accept employment and take advantage of the various benefits of the Jersey residency visa.

I will list below the information required for the Jersey high-value residency program applicants need to fulfill:

• You must possess the highest standards of moral conduct and provide evidence to the authorities that your residence status in Jersey will contribute to the economic or social well-being of the island;

• You must acquire real estate worth at least £1,750,000 ($1,953,201 USD value may vary with the market). The property may also be leased or rented. Once your residency application has been approved, you must comply with the condition that your primary residence must be on this property;

• You must pay a tax of at least £145,000 ($161,836 USD),  which complies with Article 135A of the Income Tax Law. You must pay taxes on your global income when you live in Jersey. Your yearly income should be at least £725,000 ($809,183 USD);

For the High-Value Residency program in Jersey, you're eligible even if you rent a property valued at the minimum investment required, whether it's a house or an apartment, with their respective values.

However, residents (who've gained this status) can indeed rent properties, but it's generally expected that they purchase their sole or main residence. As such, conditions are in place that limit the ability to rent properties until one year after arrival unless deemed reasonable and necessary under all circumstances—for instance, between real estate transactions or to complete a transaction, or to carry out significant renovations. You'll find much more detail on this in the Jersey government document.

There are also additional criteria for applicants to be approved to get residency in Jersey. To apply, you must be at least 18 years old, prove that you have sufficient amounts of money for investments at your disposal, and have enough money to maintain yourself and your family without relying on any public funding. Jersey's program is intended for high-net-worth investors.

Related article: The Basics Of How To Get A Second Passport Or A Second Residency

JERSEY'S STEP-BY-STEP APPLICATION PROCESS

The Jersey residence by investment program conditions are simple yet strict and require many details on you and your finances. Only a set (but hidden) number of candidates are granted Jersey residence status each year, so interested investors, don't wait.

The application is usually handled within two weeks and costs £5,000 ($5,580 USD) for one individual. In other words, if you have a spouse and dependents, you must pay £5,000 ($5,580 USD) each as they are counted as separate applicants for this purpose. But here's some interesting information: The application procedure in Jersey differs significantly from those of other residencies by investment visa programs. Extensive background investigations are conducted by government authorities to ensure that the applicants are a good match for Jersey and vice versa.

So, what should interested applicants do if they want to reside in Jersey? Here's our step-by-step procedure.

If you want to apply for the high-value residency visa, you'll need to provide the following information and details and deliver them to government authorities in Jersey:

• A personal application letter written by the applicants.

• Your company profile, as well as any supporting documents

• Your financial profile, in addition to all required documents

• Two personal recommendations

• Two professional recommendations

• A duplicate of your passport

• Bring your marriage certificate if you're buying a home with a spouse.

• A Disclosure Certificate issued by the appropriate Disclosure and Barring Service Authority.

• A declaration of your international income to the government of Jersey

Related article: Residency In The British Virgin Islands A Tax Haven Option

Grève de Lecq beach, Jersey

If your application is approved, you will be given a Jersey resident card and permitted to enter the nation. Typically, your investor visa will be accepted within two to four weeks, and you will be allowed to migrate to the island (with your family, if applicable).

The next stage will be to acquire real estate. You may rent if you want, but those who rent seldom get accepted to become Jersey residents. So the figure to remember here is £1,750,000 ($1,953,201 USD). Investors need to invest at least this much to keep their residency in Jersey.

You'll also be interviewed by government authorities, who will ask for information on where your money originates from and how you plan to support your tax pledge.

Following three years of stay, you will be entitled to renew your residence status for another two years, provided you have retained the real estate in your possession and continue to pay tax yearly. You may also not rent the property to maintain your residence status.

Also, You must obtain your residency card. To apply for permanent residency in Jersey, you must be a full-time tax resident on the island. This equates to paying at least £145,000 ($161,836 USD)  in personal taxes each year. Furthermore, you must spend more time in Jersey than anyplace else in the globe each year leading up to your permanent residency application - at least five years before applying. Your permanent residence status, also known as the Indefinite Leave to Remain (ILR), will allow you to spend less time in Jersey. In contrast to your first residency in Jersey, you must show that you have a suitable level of English and understanding of life in the UK and Jersey.

YOU CAN ONLY GAIN JERSEY RESIDENCY BY INVESTING IN REAL ESTATE

Let's go through what it takes to acquire real estate in Jersey since it's a very different and complicated procedure than in other regions of the globe. If you apply for and are granted residency in Jersey, you will be asked to move there and purchase real estate within 90 days.

The minimum price is £1.75 million ($1,953,201 USD). Although you'd think you'd get a mansion for that, the truth is a little simpler: real estate prices in Jersey are relatively high due to a shortage of availability but great demand. All property transactions in Jersey are done publicly before the Royal Court. The real estate contract must be presented to the court by a local lawyer. You may grant such a lawyer power of attorney to represent you in court, eliminating your need to appear.

Due to multiple surveys, searches, and site inspections, the process from accepting an offer to the conclusion of a transaction may take up to six weeks. As the purchaser, you must pay stamp duty on the property. The free market value will determine the amount you will pay. The highest interest rate is 9.5%, which you must pay in full before the title is handed to you.

Related content: St. Kitts And Nevis' Citizenship Program Undergoes Monumental Overhaul

St. Catherines Breakwater, Jersey

HIGH-VALUE TAX RESIDENCY AS A WAY TO JERSEY'S CITIZENSHIP

After six years of living in Jersey, you can apply for UK citizenship. You must be a permanent resident for at least 12 months before applying for citizenship, and you must live in Jersey for five years before obtaining permanent residency. You are not required to apply for citizenship if you do not want to. On the other hand, a Jersey Channel Islands passport is equivalent to a UK passport, which permits visa-free travel to over 173 countries worldwide. And that may be a good thing for your passport portfolio, the freedoms of living and conducting business that come with a UK passport, and many other advantages.

You cannot remain absent from Jersey for more than 90 days in the year before your citizenship application. To be eligible to apply, you must have spent no more than 450 days away from Jersey or the UK in the previous five years. The good news is that after you acquire your passport, you will not be required to renounce any other citizenship you may hold on behalf of Jersey. This is because, like the United Kingdom, it has no limits on dual citizenship. Just be sure to acquire information on your nation's dual citizenship laws.

L'Etacq, Jersey

TAX IMPLICATIONS OF JERSEY RESIDENCY

Every overseas migration, particularly acquiring residency anywhere, has tax implications. So, before making such a big decision as moving to Jersey, consider how it would affect your money.

The good news is that Jersey is a very tax-friendly jurisdiction, particularly for high-net-worth individuals. It is not a tax-free nation, but it is surely a low-tax one. When someone becomes a Jersey resident via investment, his income is taxed at 20% on the first £725,000 ($809,183 USD) he earns. Any excess earnings will be taxed at a rate of 1%. You will pay income and goods and services taxes (at a 5% rate), but there are no capital gains (in most sectors), wealth, inheritance, sales, gift, or estate taxes.

Jersey is dedicated to retaining its attractiveness to investors as a country where tax rates may be optimized for many decades. You may further reduce your exposure to Jersey's income tax by establishing trusts outside the island. However, these must be authorized by the Jersey government. Furthermore, you should know the minimal tax you must pay to the Jersey economy each year or risk losing your residency status.

St. Helier Marina, Jersey

CONCLUSION

Jersey provides a quality environment to protect your wealth, and you may start many types of businesses there. Because Jersey's business environment is well-regulated, offering stability and a high-quality free market, you may confidently move there. It provides safety, privacy, high-quality healthcare, leisure activities, world-class restaurants, and a solid educational system, making it the ideal environment for you and your family to flourish.

Jersey has beaches, beautiful terrain, and clean sea air. It is conveniently close to crucial global centres for businesses yet far enough away to allow for a relaxed lifestyle in a secure environment. Thanks to the luxury property market, you may live comfortably in a way that suits you. For more details on this visa, contact us.