Second Citizenship
December 4, 2023
Reading Time: 8 min

Jersey residence by investment program: a complete guide

The Jersey High-Value Residency program is tailored to affluent individuals who can bring meaningful economic and social benefits to Jersey.

Foreigners are not required to invest, but they must generate an annual tax of £250,000, have an income of £1,250,000 per annum, and have personal wealth of £10,000,000 in assets. It is also required to have a residential property worth at least £1,750,000.

In exchange, foreigners obtain a temporary residence permit in Jersey, which can be a first step to UK citizenship.

Elena Ruda
Elena Ruda

Shared information on the Jersey High-Value Residency program

Jersey High Value Residency

Jersey residence by investment program: a complete guide

Jersey: a country overview

Jersey is the largest island among the Channel Islands. It is nestled just 14 miles off the coast of France and 120 miles from Southampton, England.

Jersey covers an area of about 46 square miles. It features a varied landscape, including long sandy beaches, rugged cliffs, and lush valleys. The island enjoys a mild climate with more sunshine hours than the UK.

Jersey has a prosperous economy that relies heavily on international financial services, tourism, agriculture, and retail. It is known for its low tax regime, making it a popular location for offshore banking.

Despite its proximity to France, it is a Crown dependency of the United Kingdom. However, Jersey is not part of the UK or the European Union. It has its own independent legal and administrative systems. The island’s relationship with the UK is managed through the Crown.

The island has a unique cultural blend of British and French influences. English is the primary language, but the traditional language is Jèrriais, a form of Norman French.

About Jersey country

Jersey is a small country with a population of 103,267 people

Requirements for Jersey High-Value Residency

Like some other European countries, Jersey grants residency to financially independent persons. They are not required to make any investments.

Foreigners interested in the High Value Residency program must meet the program conditions and real estate requirements.

Program conditions. To participate in the High-Value Residency program, one must demonstrate:

  • the ability to generate an annual minimum tax contribution of £250,000;

  • comfortable and sustainable worldwide income over £1,250,000 per annum;

  • a wealth of more than £10,000,000 in assets, excluding the primary residence and some liquidity.

Other requirements. Meeting all the criteria above doesn’t guarantee the approval of the application. The authorities also consider whether you have:

  • made business contributions;

  • performed voluntary work in the local community;

  • supported sporting training initiatives;

  • positive or neutral media coverage;

  • any negative factors in your background.

They also assess your family and your general lifestyle, past charitable contributions or work, skills or cultural interests that could benefit the Jersey community, your residency’s impact locally, and your plans for business activity in Jersey.

Real estate requirements. You must rent or purchase a Jersey residential property when your application is approved. If you buy a house, its cost must be at least £3,500,000. When purchasing an apartment, the minimum price is £1,750,000.

Rented property must be of the same saleable value. If renting, you must also buy your own property two years after obtaining a residence permit.

Documents. The applicant must collect a package of documents that usually includes:

  • a letter of application;

  • a copy of the passport;

  • a marriage certificate, if applicable;

  • a business profile;

  • a financial profile;

  • two personal and business references;

  • no criminal record certificate;

  • papers proving of the income;

  • a Disclosure Certificate from the relevant Disclosure and Barring Service authority.

11 benefits of the Jersey High-Value Residence program

1. Travel opportunities. Jersey is not part of the UK but has an agreement known as the Common Travel Area. It allows its residents free travel across Ireland and the UK. It also eliminates any pesky immigration checks between these areas.

2. Taxation. Residents enjoy favourable conditions, including low personal and income tax rates — 20% for up to the first £725,000, then only 1% after that. Moreover, no inheritance, wealth, or capital gains tax exists.

3. Path to British citizenship. Jersey residents can apply for a UK passport six years after becoming temporary residents. UK citizens can move to the country and travel visa-free to the EU, Australia, Canada, and the US.

4. No investment requirements. The applicant doesn’t need to make any investments in the country. They must only pay a certain sum of annual tax and prove they have enough income and personal assets.

5. Life quality. Jersey is also known for its privacy laws and low crime rate, making it an attractive location for those seeking a secure and private living environment. The island offers residents an abundance of leisure activities to choose from. For instance, Jersey offers various water sports, such as sailing, surfing, and kayaking.

6. Networking. Jersey is popular among corporate circles due to its strategic location near Europe. It attracts top-notch professionals from around the globe, creating a dynamic community that’s perfect for networking. Corporate events, business meetings, or festivals often happen in Jersey, which also helps with networking.

7. Strategic location. Jersey’s location between the UK and France provides residents easy access to major European cities. It is beneficial for business people who need to travel frequently.

8. Fast process of acquiring residency. The application process takes only 2—4 weeks, making the Jersey High-Value Residency program one of the fastest.

9. Stable political and economic environment. As a Crown dependency, Jersey enjoys political stability and has a robust, diversified economy. This stability can appeal to individuals seeking a secure place to reside and invest.

10. Addition of family members. A spouse and children of the principal applicant can be included in the application.

11. English as an official language. Applicants are not required to learn other languages, as English is used everywhere in Jersey.

Disadvantages of Jersey High-Value Residency

Minimum income and tax contributions. Applicants must demonstrate a sustainable annual income of a minimum of £1,250,000, the ability to generate an annual minimum tax contribution of £250,000 and a personal wealth of more than £10,000,000 in assets.

Property ownership. High-Value Residency applicants are required to own a property on the island for at least £1,750,000. Even if a person rents a property, they must purchase one 2 years after obtaining residency.

Additional qualifying factors. Beyond financial requirements, the minister responsible for the program may consider additional factors, such as voluntary work or business contributions to the local community and involvement in training or sporting initiatives, especially those aimed at youth or educational organisations.

Process of obtaining a residence status in Jersey

The application is considered within 2—4 months and consists of five steps.

1

1 day

Check the eligibility

Become acquainted with all the High-Value Residency requirements and ensure you meet them all. Real estate can be bought or rented later.

2

1—2 weeks

Collect the documents

It usually includes a passport, business and personal references, no criminal record certificate, and papers proving the income. The program department might also require additional documentation.

3

2—4 weeks

Apply for a residency

The authorities perform a Due Diligence process, then send your application to the Comptroller of Taxes. Ultimately, all the documents are passed to the Government of Jersey’s Housing and Work Advisory Group, which makes a final decision.

You must also undergo an interview with the officials, explaining where your income comes from and how you will be able to pay taxes.

4

1 month

Buy or rent a residential property

You can enter Jersey and get a residential property when your application is approved. It must be of a certain cost, and you must keep it for as long as you have your residence permit.

5

After 3 years

Renew your residence permit

When your residence permit expires, you can extend it for 2 more years. Then, 5 years after obtaining a document, you are eligible for permanent residency.

During this period, you must keep your property in Jersey, spend at least 185 days a year in the country, and pay taxes.

Rent and purchase of real estate in Jersey

High-Value Residents can rent any property except social rented housing in any part of Jersey.

When renting a property, the foreigner must participate in a tenancy deposit scheme: the tenant transfers a deposit to mydeposits Jersey organisation, and they keep the money during the leasing period.

It is designed to protect tenants and landlords when the requirements mentioned in a signed lease contract are unmet. The cost of participation is £21. If the tenant or landlord doesn’t use this scheme, there is a fine of £10,000.

When buying a property, it is required to go to the Royal Court, as all the transactions must be public and reviewed by authorities. During the process, a buyer must take an oath that they know the contents of the deed of sale and will not act against it upon pain of perjury.

A foreigner can also:

  • buy, develop and sell residential properties through a property development company;

  • buy a residential property that adjoins their main place of residence in Jersey.

Joint and in common ownership of a property is possible, but it only applies to houses. The main difference is the ability to sell and alter a property interest. In the case of joint ownership, all parties must agree; when it comes to in common ownership, consent is required from an owner in common only.

Taxes in Jersey

Jersey has one of the lowest taxes among European countries.

Personal taxes. High-Value Residents' personal tax depends on their income.

  • 20% on the first £1,250,000;

  • 1% on all income over £1,250,000;

  • 20% on income derived from Jersey land and property or dividends paid from a company in receipt of Jersey property income.

According to the program requirements, a foreigner must make an annual minimum tax contribution of £250,000.

In Jersey, there are no inheritance, wealth, or capital gains taxes on individuals.

Business taxes. There is no corporate tax in Jersey for the majority of the companies. However, they are imposed on some types of businesses. Among them are:

  • certain regulated financial service companies — 10%;

  • utility companies — 20%;

  • retailers in Jersey with a retail turnover of £2,000,000 and above — 0% if profits are less than £500,000, on a sliding scale from 0% to 20% when profits are between £500,000 and £750,000, and at 20% if profits exceed £750,000;

  • on income derived explicitly from trading in Jersey in the importation and supply of hydrocarbon oils, quarrying, property development, and property rental — 20%.

There is a penalty of 10% if the business person doesn’t pay taxes by early December of the year following the year of assessment.

Property taxes. Property owners pay three property taxes: stamp duty, Land Transactions Tax (LTT), and parish rate.

The real estate purchaser pays stamp duty on acquisitions or transfers of property. It is calculated depending on the property’s value and can be as high as 10,5%. This tax must be paid before passing a sale and purchase contract.

Stamp duty of 0,5% and a document fee of £80 must be paid on any borrowing secured over Jersey real estate.

A foreigner pays a Land Transactions Tax on transferred property transactions. It is equivalent to the amount of stamp duty.

Jersey is divided into 12 parishes; all property owners must pay a parish rate to maintain common areas. This tax is calculated individually.

Path to permanent residency and citizenship

The island isn’t technically under British Crown rule but does have strong ties due to its status as a Crown dependency. As such, after holding residency in Jersey for five years, applicants can apply for permanent residence.

After being a Jersey resident for six years — five with a residence permit and one with permanent residency — foreigners can apply for British citizenship.

Alternatives to the Jersey residency program

Some European countries have residency programs for financially independent people or digital nomads. They don’t require investing, but applicants must prove their income.

The Portugal Digital Nomad Visa is granted to foreigners who work remotely: freelancers, entrepreneurs, employees of foreign companies, and self-employed specialists.

To qualify, they must prove their monthly income is at least €3,040 and rent or buy a residential property. There are also no requirements for choosing real estate.

A foreigner must live in Portugal for at least 183 days a year to maintain the status.

The Portugal D7 Visa is designed for people with a passive income exceeding the minimum wage in Portugal. Starting January 1st, 2024, the minimum Portuguese salary is 820 per month.

D7 visa applicants also need to rent or buy real estate in Portugal and stay in the country for at least 183 days a year. There are no specific requirements for a rented or purchased property.

Austria Residence Permit is for financially independent persons with enough money in their bank account to support living in the country for a year. The applicant must rent or buy housing, with the price depending on the family composition. It is also required to have a basic proficiency in German.

Switzerland Residence Permit is granted to a person who pays a lump-sum tax of ₣450,000+ per year. It is calculated individually and depends on the composition of a family and the canton they plan to live in. Another requirement is to live in the country for 183+ days a year.

Key takeouts

  1. Jersey is the largest island among the Channel Islands and a Crown dependency of the UK.

  2. The High-Value Residence program is designed for High Net Worth individuals who can generate an annual minimum tax contribution of £250,000, have a worldwide income over £1,250,000 per annum, and have a wealth of more than £10,000,000 in assets.

  3. Upon approval of the application, a foreigner must buy or rent real estate for at least £1,750,000.

  4. The application process lasts for 2—4 months.

  5. After five years of living in Jersey, one can obtain permanent residency and apply for British citizenship after one more year.

  6. There are a few alternatives to the Jersey High-Value Residence program. They are Switzerland Residence Permit Program, Austrian Residence Permit Program, the Portugal Digital Nomad Visa, and the Portugal D7 Visa.

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