offshore relocations moving your business to jersey...offshore relocations 04 establishing a jersey...

Offshore relocationsMoving your business to Jersey

Jersey is abeautiful andsecure islandoffering an idealbase forinternationalbusinesses andindividuals.

ContentsMoving your business toJersey 3Establishing a Jerseyworkforce 4Business moves to Jersey 6Establishing a business inJersey 10Local taxes 12Moving your family to Jersey 14Contact us 15

Offshore relocations

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Moving your business to JerseyAn increasing number of businessesare relocating to Jersey, citing abusiness friendly environment andquality lifestyle as the motivatingfactors.

Organisations such as LocateJersey and Digital Jersey facilitateinward investment and Jersey haswelcomed many new businessesover the past few years from arange of sectors including miningand oil companies, fundmanagers, fintech, financecompanies, retailers and hoteliers.

The key factors making Jerseyso attractive include:

zero rate of corporate tax forforeign-owned businesses andlow rates of personal taxationno capital gains or inheritancetax and no stamp duty otherthan on local real estatetransactionsability to centralise managementand control in one placeability to demonstrate realsubstance in the jurisdictionmodern and flexible legislationgood supply infrastructureresources including office spaceand support services

a broad base of professionalservice providers with high levelsof expertisea skilled local work forcea government which is willingand keen to encourage inwardinvestment and businessrelocationproximity to London and abilityto deal with New York and HongKong in same business dayeconomic and political stabilitystrong transport links to Londonand other European centres

Both international businesses witha diverse geographical asset baseand traditional London-basedcompanies are realising that forboth their management team andfor the owners of the business itmakes sense to relocate to a moreattractive tax neutral jurisdictionwhich also offers a quality lifestyleclose to the UK and France.


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Establishing a Jersey workforceJersey law does not prohibit foreignemployees and owners from movingto and working in the island, orbusinesses setting up in Jersey.

Jersey is not a member of theEuropean Union but it does applyequivalent principles of freedom ofestablishment and free movementof EU citizens, subject to somelocal licensing requirements inrelation to housing and businesseswith a local physical presence.

Non EU citizens will have to applyfor a work permit under Jersey’simmigration laws, which operateon the same basis as the UnitedKingdom.

There are two ways overseasemployees or owners can move toand reside in Jersey:

1. Essential employeesWhere the required skill-set cannotbe readily found in Jersey, anapplication can be made for thepost to be filled by ‘essentiallyemployed’ individuals, whichpermits the business to recruit thenecessary professionals fromoutside Jersey.

Typically the government in Jerseyis looking to balance the numberof individuals relocating to Jerseywith a commitment by thebusiness to employ a certainnumber of local Jersey residents.

Individual employees residing inJersey as a result of being‘essentially employed’ do not haveto satisfy a minimum local incometax contribution. The factors takeninto account in granting‘essentially employed’ statusinclude the lack of suitablyavailable local employees, theexpected economic contribution ofthe employer through theemployment of the employee andotherwise, and the qualificationsof the employee.

The Jersey authorities havedemonstrated an increasedwillingness to grant ‘essentiallyemployed’ status to employees ofnew businesses that meet thecriteria for establishing a presencein the Island. These individuals aresubject to local income tax ontheir worldwide income at aheadline rate of 20%.


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2. High Net Worth IndividualsFor the high net worth individualswho are principals of the business,approval for residency can begranted based on the followingcriteria:

likely contribution to Jersey taxrevenues (in the region of£145,000 pa although thePopulation Office is also willingto take account of relatedemployment creationopportunities)relevant business and socialbackgroundthe number of dependants andthe extent to which these peoplemay in time acquire localhousing qualificationsthe total net worth of theapplicationany other non-economic benefitsfor Jerseythe associated establishment ofa business in Jersey generatinglocal tax revenues and providingemployment while not adverselyimpacting on local resources.

The successful principal wouldgenerally be expected to purchasea Jersey property of at least£1,750,000 in value, althoughthere are a limited number ofhouses and apartments availablebelow this level that haveappropriate status for occupationby such a person.

Whilst the general headline rate ofJersey income tax is 20%, bandedheadline rates apply for high networth individuals under thepresent high value residency rules,as follows:

Minimum annual contributionfor all new residents is £145,000The first £725,000 is taxed at20% with the balance beingtaxed at 1% on worldwideincomeIncome from land and buildingsin Jersey is taxed at 20%.

One key factor is to have certaintyof breaking previous tax residencyon relocating.

Principals should obtain specialisttax advice for detailed worldwidetax planning and Ogier aredelighted to make introductionson request.


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Business moves to JerseyExamples of business relocating toJersey include:

Brevan HowardBrevan Howard, one of the largesthedge fund managers in the worldwith approximately US$40bnunder management (and thelargest in Europe) relocated itshead office to Jersey together witha number of its seniormanagement.

BlueCrest Capital ManagementBlueCrest relocated its head officeto Jersey, together with a numberof its senior management. Prior toclosing to outside investment,BlueCrest was Europe's thirdlargest hedge fund manager.

Systematica InvestmentsSystematica Investments spun outof BlueCrest in 2015 andestablished an office in Jersey.

Randgold Resources plcThis FTSE 100 Jersey-incorporated,African focused gold miningcompany opened an office inJersey and relocated its seniormanagement from London andelsewhere.

Consolidated MineralsConsolidated Minerals is a aprivate global mining businesswhich relocated key personnelfrom Australia and South Africa.

Altis PartnersA top 20 hedge fund manager,Altis Partners relocated all itsprincipals and operations to Jersey.

Heritage Oil plcHeritage Oil plc is a FTSE 100 oilcompany which has its main officein Jersey, where its chief executivealso lives.

WaitroseWaitrose acquired the Checkerssupermarket business in Jersey andGuernsey, which included therelocation of key Waitroseexecutives to Jersey and a newJersey holding structure.

Centamin plcCentamin is a FTSE 250 Jerseyincorporated gold miningcompany which opened an officein Jersey and relocated its seniormanagement from elsewhere

Lydian InternationalThis Toronto listed miningcompany which has relocated keyexecutives and employed localgeologists and administrationstaff.

Ocean RigOcean Rig is a deep water drillingoperation currently in theFalklands and Brazil whichoperates its administration andcontracts business out of Jersey.

E-GamingJersey has recently amended itsgambling legislation to permit andencourage e-gaming businesses toset up in Jersey. Jersey is now anattractive alternative to places likeGibraltar and businesses canbenefit from better infrastructureand expertise along with thecredibility associated with being ina well regulated jurisdiction.

StradaStrada Energy is a geothermaldrilling company headquartered inJersey, Channel Islands, withsubsidiaries in the UnitedKingdom, Germany, Australia,Indonesia, Malaysia, Chile, andNorth America.

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A world-class commercial environment in a relaxed, safe, holiday location – what more could you ask for?

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A world-class commercial environment in a relaxed, safe, holiday location – what more could you ask for?


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Establishing a business inJerseyDo I need a Jersey Company?Foreign companies can conductbusiness in Jersey and there is norequirement that a business beowned by a Jersey company.However, many businesses doincorporate a new Jersey companyto hold or operate the business.Alternatively, it is often possible tomigrate a foreign company toJersey via a de-registration and re-registration process.

It is often easier to relocate usingan English scheme of arrangementor a straight forward share swap(where there are not manyshareholders) and insert a Jerseyholding company. Ogier hasexpertise in all these areas and willwork with your local advisers toimplement such structuring.

Does my business need anylicences?As well as a business having toobtain consent for relocatingemployees to reside in Jersey, thebusiness will also have to obtainapproval to set up operations andwill be granted a business licenceto operate, occupy office spaceand is required to employ up to aspecific number of non locallyqualified employees. Once thelicence is granted, the businessmay employ as many or as fewlocal employees as it wishes.Applications for new employeesarriving from outside Jersey can bemade at any time. The importanceis to fulfil the criteria.

The Jersey authorities will belooking to ensure that as manylocal candidates are identified forjobs as possible but they recognisethe need to bring in specificexpertise from outside Jersey aswell.

Other licences may also berequired if your business isconducting any regulated activity,such as investment managementor insurance business, and Ogiercan advise on all aspects of theselicences.


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Intellectual PropertyJersey has modern laws relating toregistered rights such as patentsand trademarks. A recent new lawhas updated older copyright andunregistered intellectual propertyrights such as database,publication and design rights. Asone of the consequences for thenew law being introduced, thegovernment in Jersey hopes toencourage businesses to relocatekey staff and actively managetheir regional or worldwideintellectual property portfoliosfrom Jersey. As one of theconsequences for the new lawbeing introduced, the governmentin Jersey hopes to encouragebusinesses to relocate key staffand actively manage their regionalor worldwide intellectual propertyportfolios from Jersey.

Local resourcesJersey has all the infrastructureand expertise most businessesrequire with new office spaceunder construction to add to thatalready available. Back officefunctions, IT, banking, complianceand accounting functions are allreadily available. Local professionaladvisers operate in a manner thatwould be familiar to anyoneworking in London and work tohigh standards of client delivery.

Various organisations andauthorities continue to scrutiniseinternational finance centres andthere are an increasing number ofchallenges being made bygovernments and revenueauthorities to the integrity ofstructures. Therefore, it isbecoming increasingly importantfor businesses to demonstrateproper substance in thejurisdiction not just withmanagement and control but alsowith office space and employees.This is often not possible in otherjurisdictions but is very easy toachieve in Jersey.


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Local taxesCorporate TaxThe profits of most Jerseycompanies owned by non Jerseyresidents are subject to tax at arate of 0% on their worldwideincome. A higher rate of 10%applies to the income of arestricted sector of local financialservices companies. This is knownas the Zero Ten regime. There is notaxation of capital gains in Jersey.

In addition, should the Zero Tenregime be amended or notsuitable for the business it mayalso be possible to structurearrangements in certaincircumstances so that a tax rulingis obtained from the relevantauthorities in Jersey to ensureminimal tax is paid in Jersey.However, the government in Jerseyhas stressed the importance of theZero Ten regime and has publiclyannounced that it is seeking toamend the regime rather thanchange the regime by abolishingthe zero rate of tax.

In contrast to other jurisdictions,Jersey social security contributionsare capped for both employer andemployee. Employer contributionsare levied at 6.5% on the first£3,686 (per month) of salary andemployee contributions are leviedat 6% to the same salary level.

Personal TaxJersey has a straight-forwardpersonal tax regime. There are:

no wealth taxesno capital gains taxesno gift taxesno inheritance taxes

Stamp duty is only payable on theacquisition and financing of Jerseyproperty and a capped probateduty is payable on the registrationof Jersey wills. There is no stampduty generally in respect of thetransfer of shares in a Jerseycompany (except local real estatetransactions where property isowned through shares).

Jersey’s fiscal stability and taxcertainty is demonstrated by theheadline rate of income tax havingremained at 20% since circa 1940.However, as set out above aseparate regime applies to highnet worth individual immigrants.

Goods and Services TaxIn addition to income tax there is agoods and services tax of 5% onall goods and services supplied inJersey although some services areeither zero rated (eg. Internationalservices) or exempt (eg. financialservices or medical supplies). Wewould recommend that specifictax advice is taken prior torelocation as regards any liabilityto GST on services provided fromoutside Jersey to any Jerseybusiness or where goods orservices are being provided by theJersey business to outside ofJersey. Further detail is available atwww.gov.je/taxesmoney/gst.

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Jonathan HughesPartner and Head of Offshore Relocations

Our services to relocating families, individuals and firms goes beyond basic conveyancing - we advise on finding a property, and work with clients to introduce them to our trusted networks of local suppliers and professionals.


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Moving your family to JerseyFinding a location that offers thevery best tax advantages might beyour driving force, but choosing ajurisdiction that is to become yourhome is about much more. The keyis to settle somewhere that worksfor your wealth but, first andforemost, works for you and yourfamily too.

The international relocationprocess starts with an assessmentof where to move. This deceptivelysimple question requires detailedconsideration. It’s vital to knowwhere you can potentially go, andhow you might acquire rights tolive and/or work there. Ifrelocating with family, it’simportant to understand how easyit is for them to accompany you.Once you arrive in your new home,how easy is it to buy a house, orstart a business? What is theeducation system like? How’s thehealthcare? On the tax front, youwill need to understand how themove impacts on your overall taxand reporting obligations. Arethere any local taxes that youneed to consider?

Jersey, like the BVI, CaymanIslands and Guernsey, is anindependent, low (or no) taxjurisdiction. It is a cosmopolitanisland that offers a beautiful,secure place to live with traditionalvalues sitting at the very heart ofa contemporary lifestyle. Respectand privacy are enjoyed. Businessand leisure opportunities abound,the schools are superb and thehealth services on the Island arefirst class.

Ogier’s relocation servicesinclude

Advice on personal and businesslegal implications of relocationApplications to secure residence

Helping make ‘settling in’connectionsLocal tax guidanceOptions for residenceProperty purchasesRelocation of dependentrelativesRetaining rights of residenceRestrictions on propertyownership

Jersey has a very good healthcaresystem with a wealth of doctors,dentists and other medicalpractitioners. Crime is low and thestreets are much safer than in theUK and other parts of the world.

The quality of the Island’s schoolsis very good and pupil / teacherratios are low. The performance ofpupils at Jersey schools is generallyhigher for GCSE and A-Levelresults than in the UK.

Quality of life is enhanced bybeautiful, clean beaches andcountryside and all the sportsfacilities you would expect with aparticular focus on watersports aswell as on mainstream sports suchas football, rugby, cricket and golf.

Jersey has excellent transportconnections to the UK, Switzerlandand France with regular dailyflights and ferry services offering awide number of routes. There arealso flights to other Europeandestinations. Flights by jet toGatwick take 40 minutes and onaverage there are at least 12flights to the Island every day fromLondon (including London City)and also flights to other UK hubssuch as Stansted, Birmingham,Edinburgh and Manchester. At 45square miles, Jersey also eliminateslong commuting journeys witheverything being no more thanhalf an hour away.


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Contact us

Jonathan HughesHead of Offshore RelocationsT +44 1534 514336M +44 7797 [email protected]

Helen RuelleDirector of Local Legal ServicesT +44 1534 514417M +44 7797 [email protected]

James CampbellPartnerT +44 1534 514230M +44 7797 [email protected]

Emily HaithwaiteGroup Partner, Ogier Legal L.P.T +44 1534 514072M +44 7797 [email protected]

Matthew ShaxsonGroup Partner, Ogier Legal L.P.T +44 1534 514064M +44 7797 [email protected]

Ogier provides practical advice on British Virgin Islands,Cayman Islands, Guernsey, Jersey and Luxembourg lawthrough our global network of offices. Ours is the only firmto advise on these five laws. We regularly win awards forthe quality of our client service, our work and our people.Ogier Global is Ogier’s corporate administration business.Ogier Global (BVI) Limited and its subsidiaries are licensedand regulated by the British Virgin Islands Financial ServicesCommission. Ogier Global (Cayman) Limited and itssubsidiaries are regulated by the Cayman Islands MonetaryAuthority. Ogier Global (Guernsey) Limited and itsubsidiaries are licensed and regulated by the GuernseyFinancial Services Commission. Registration no 63501.Ogier Global (Jersey) Limited and its subsidiaries areregulated by the Jersey Financial Services Commission.Regulatory information can be found at ogier.com

ogier.com

Contacts

British Virgin IslandsRitter HouseWickhams Cay IIPO Box 3170Road Town, TortolaBritish Virgin Islands VG1110T +1 284 852 7300F +1 284 852 7450E [email protected]

Cayman Islands89 Nexus WayCamana BayGrand CaymanCayman Islands KY1-9009T +1 345 949 9876F +1 345 949 9877E [email protected]

GuernseyRedwood HouseSt Julian's AvenueSt Peter PortGuernsey GY1 1WAT +44 1481 721672F+44 1481 721575E [email protected]

Hong Kong11th Floor Central Tower28 Queen's Road CentralCentralHong KongT +852 3656 6000F +852 3656 6001E [email protected]

Jersey44 EsplanadeSt HelierJersey JE4 9WGChannel IslandsT +44 1534 514000F +44 1534 514444E [email protected]

London1st Floor99 BishopsgateLondon EC2M 3XDT +44 203 693 7178F +44 1534 514444E [email protected]

Luxembourg2-4 rue Eugène RuppertPO Box 2078L-1020 LuxembourgT +352 2712 2000F +352 2712 2001E [email protected]

ShanghaiRoom 3671Level 36 Shanghai InternationalFinance Centre Tower IINo. 8 Century AvenuePudong New AreaShanghai 200120ChinaT +86 21 6062 6294E [email protected]

TokyoNisso 23 BuildingSuite 801Toranomon 3-8-25, Minato-kuTokyo 105-0001JapanT +81 3 6430 9500F +81 3 6430 9501E [email protected]

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