Jersey

Jersey’s tax system can be attractive for individuals relocating to the island. Key features include:

• The maximum rate of income tax is 20%
• No capital gains tax
• No inheritance or estate taxes
• No wealth taxes

Individuals will generally be regarded as resident in Jersey for tax purposes if they move to the Island with the intention to remain indefinitely, spend at least half the year in Jersey, or have available accommodation and stay in that property during the year. Residents are generally taxable on their worldwide income, however individuals who are not ordinarily resident may be taxable on foreign income only if remitted into the Island.

Jersey offers a special regime aimed at High Net Worth individuals who wish to establish residence on the Island. Under this regime:

• The individual is granted “Entitled” status on arrival, giving rights to live and work in Jersey under Jersey’s Housing and Work controls (see below); and
• Income is taxed at 20% on the first £1.25 million per annum, and 1% on all income above this threshold.

The regime involves a formal application process, under which the individual must commit to paying a minimum of £250,000 in income tax each year. The applicant must demonstrate recurring annual income of at least £1.25 million, and net assets of no less than £10 million (although the expected minimum net assets is often higher in practice). In addition, the individual must commit to purchasing a qualifying residential property in Jersey, with a minimum value of £3.5 million for a house or £1.75 million for an apartment.

Property ownership and occupation, and working, in Jersey is controlled through a housing and work qualification system. While this introduces additional requirements when relocating, it helps preserve the quality of housing stock and local infrastructure.

Generally to have unrestricted access to the Jersey property market you must be “Entitled” to live in Jersey. An individual will generally be Entitled to live in Jersey once they have been ordinarily resident in the Island for at least 10 years.

To be Entitled to Work in Jersey an individual must generally have been ordinarily resident in Jersey for at least 5 years.

Individuals looking to move to Jersey who are not Entitled have various options available including relocating as a High Value Resident (see above), to work in Jersey under a Licence (as an “essential employee” of a local business) or to establish a business as under the Skilled High Earner regime (see below).

It is possible to rent or buy “non-qualified” property in Jersey, although the right to work in Jersey in this situation should be considered carefully. LTS would be delighted to discuss the various options available, and work with you to navigate through the relevant regimes.

Jersey’s Skilled High Earner (SHE) business licence provides a relocation route for consultants and entrepreneurs who wish to live and work in Jersey by operating their own business. The regime is aimed at high‑earning individuals who fall outside the traditional High Value Residency and standard licensing frameworks, allowing them to obtain a business licence, which grants permission to work and rent/buy property in Jersey, with less stringent requirements than a traditional business licence.

Applicants must establish a genuine business presence in Jersey, work full‑time from the Island, rent or purchase a property worth at least £2m, and demonstrate the ability to generate at least £250,000 of Jersey‑taxable income from their business per annum. Applicants must also commit to making an ongoing wider economic or social contribution to Jersey.

Under the terms of the Double Tax Treaty between Jersey and the UK, pensions are only taxable in the taxpayer’s country of residence. For individuals becoming resident in Jersey, subject to making an appropriate claim, their pension annuities or lump-sum payments will not be subject to UK income tax, but instead will be subject to tax in Jersey at the maximum rate of 20%.

In addition it is possible for Jersey residents to transfer a UK pension to a scheme in Jersey – LTS would be delighted to discuss this.

The default rate of income tax for companies in Jersey is 0%.

Certain financial services companies are subject to Jersey income tax at the rate of 10%, and certain other companies including utility companies and large corporate retailers (broadly companies with £2 million or more in retail sales to Jersey customers) may be subject to tax at the rate of 20%.

Income from Jersey land and property is generally always subject to income tax at the rate of 20%.

Multinational Corporate Income Tax (MCIT) is a distinct tax that applies only to Jersey companies that form part of large multinational groups - specifically those with consolidated annual revenues exceeding €750 million - and is charged at a rate of 15%.